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Fontanelle, IA | No doubt that Europeans are connoisseurs of whiskey.
However, Scotch, Irish, and mainland EU whiskey distillers need oak barrels for the maturation of their whiskey. many of these barrels come from the good old US of A as 1st barrel dumpers from the either Kentucky bourbon or Tennessee whiskey. If we start dumping less, then they (along with their Canadian and carribean rum running/distilling companies) are able to purchase less barrels on the international market. Period. Their cost of goods rise - albeit - the "hit" occurs 4-12 years later after that more expensive barrel is dumped.
Europe is flat market. Population growth at neutral or less. Plenty of competition from other EU, Irish, Brit, Canadian, and American brands. American distillers have been focusing marketing on SE Asia for years. That's where growth is.
To me, Europe tariffing US whiskey/bourbon is sort of like taxing cigarettes for folks that are over 90 years old..... | |
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Silver lining.
