‘Such a disappointment’: Moosehead CEO concerned about impact of tariffs on economy, consumers

The CEO of Moosehead says the Maritime-based brewery faces several challenges due to tariffs.

Moosehead Breweries, which is as old as the country itself, proudly boasts the title of the largest Canadian-owned brewery in Canada.

The company employs around 300 people, 200 of which are based at the Saint John, N.B., brewery and head office, and sends their product across Canada and 16 other countries.

One of those countries is the Unted States, which on Tuesday implemented 25 per cent tariffs on all Canadian goods.

“This is such a disappointment,” says Andrew Oland, president and CEO of Moosehead Breweries. “We’ve always had such a close relationship with the United States, and so it’s really sad to see this relationship going in a different direction.”

Oland says he is focused on three big challenges as the trade war with Canada’s closest ally begins.

The first is the Canadian economy overall and how it will be impacted by the tariffs.

The second, which relates directly to his company’s operations, is the need for aluminum. Oland says aluminum cans and can lids are one of their biggest costs.

“For example can lids, we can only get them out of the U.S.,” says Oland. “There’s going to be some type of tariff probably coming back into Canada on those.”

“Some of the ingredients have to go to the U.S. first and then come back to Canada to be manufactured into cans,” he continues. “Lids are only made in the United States, even though all the aluminum comes from Canada.”

The third concern is the impact on customers and consumers in the United States. Oland points out that 20 per cent of their product is sent south of the border.

But Oland says he’s a “beer-glass-is-half-full” thinker and the brand is leaning into the newfound pride Canadians have shown when it comes to supporting national products.

“We are having lots of conversations with customers about the role Moosehead plays in the Canadian brewing industry,” Oland says. “We have billboards up and things like that in various markets across the country to remind Canadians that we are 100 per cent Canadian.”

The Canadian Chamber of Commerce recently stated Saint John is the most “tariff-exposed” city in Canada. Oland says the city’s economy is resilient and is made up of a number of companies that have dealt with their fair share of ups and downs.

He says some companies will have an easier time than others as they will be able to pass on their extra costs brought on by the tariffs to American customers because they do not have an alternative.

Oland, who is also the chair of Beer Canada, says it is tough to plan for the road ahead with so much uncertainty surrounding the tariffs, including how long they will last.

One thing he is focused on is the federal beer tax, which is due for an annual increase on April 1. The tax was first introduced by the federal government in 2016.

“I just can’t imagine in this environment that our next prime minister, whoever that will be, will go ahead with a tax increase on brewers in such a volatile time,” Oland believes.

Oland also addressed the province’s decision to remove American brands from the shelves at NB Liquor stores. While he applauds the move, Oland says it won’t have much of an impact on the beer sector, with little beer coming into Canada from the United States.

“Any of the big U.S. brands that you would think are U.S. brands are actually made in Canada,” Oland points out.

“There’s obviously a fair amount of California wine, bourbon from Kentucky, things of that nature, but I think the bigger opportunity for Canadian brewers is what’s going on with the ‘Buy Canadian’ movement and Canadian pride. That’s a real opportunity for brewers in Canada.”

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