U.S. Spirits Exports Rebounded in 2021, But Retaliatory Tariffs Still Hurt

That’s the opinion of Charles  McEntee,  Director, Export Promotion, at the Distilled Spirits Council of the United States (DISCUS).

“In 2021, U.S. spirits exports rebounded from 2020 levels due to the reopening of the hospitality sector, consumers choosing premium and super-premium American spirits, and a suspension of retaliatory tariffs on certain U.S. spirits exports,” said McEntee. “This is a great sign,” he said, but our exports remain well below pre-tariff levels achieved in 2018 – the first year that retaliatory tariffs were imposed on American whiskeys.  With the lifting of these tariffs by the EU and UK, we expect to see a renewed appreciation for U.S. spirits from consumers overseas.”

McEntee noted that DISCUS’s 2021 export promotion activities resulted in more than $875,000 in new exports of American spirits products by small U.S. distillers across the country.

“U.S. craft distillers have greatly benefitted from DISCUS’ partnership with the U.S. Department of Agriculture to promote American spirits,” said . “It is a concrete example of the effectiveness of public-private partnerships and illustrates how this program can assist small businesses across the U.S. that are working hard to expand their sales into foreign markets. Many of these businesses do not have the resources needed to break into these markets on their own, but this cost-sharing program helps to maximize their resources to reach adult consumers and importers in key markets.”

DISCUS used funding from USDA’s Market Access Program (MAP) as well as the Agriculture Trade Program (ATP), which was set up specifically to assist agriculture groups that have been adversely impacted by retaliatory tariffs, to implement marketing campaigns in Australia, Canada, Germany, Japan, South Africa, Taiwan and the United Kingdom, and to participate in trade shows in London and Berlin. 

Last year was particularly challenging for implementing MAP and ATP export promotion activities due to the ongoing COVID-19 pandemic and the sporadic reopening and closings of the global hospitality sector, he said. 

“Cheers! Spirits from the U.S.A.” campaigns served as the centerpiece for the promotions. The campaigns, tailored for each targeted country, aimed to educate adult consumers, buyers and importers about the versatility and uniqueness of U.S. distilled spirits, with a focus on American whiskeys and its mixability in cocktails. The campaigns resulted in nearly 348 million impressions worldwide in 2021.

DISCUS began participating in the MAP program in 2006 and has conducted spirits promotions in cooperation with USDA in 21 foreign markets. Since that time, total U.S. spirits exports have increased by nearly 90%, to $1.6 billion in 2021 from $831 million in 2006 .

DISCUS plans to return to London and Berlin to participate in trade shows in July and October of this year, and continue its “Cheers! Spirits from the U.S.A” campaigns in Australia, Canada, Germany, Japan, South Africa and the United Kingdom.

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