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BUSINESS Thursday 13 February 2020
A25

U.S. whiskey exports decline as trade dispute with EU persists

By BRUCE SCHREINER "small amount" of spirits last
Associated Press year as it tries to find new
FRANKFORT, Ky. (AP) — markets to make up for
President Donald Trump's losses in Europe, Harris said.
trade war dampened the Meanwhile, the whiskey in-
overseas market for Amer- dustry is hoping for a trade
ican-made whiskey last breakthrough with the EU.
year, diminishing exports "We are hopeful that the re-
even as the domestic mar- cent trade agreements will
ket continues to thrive. create new momentum for
Overall exports of bourbon, negotiations with the EU,"
Tennessee whiskey and rye said Christine LoCascio,
whiskey tumbled amid a the council's public policy
trade war-induced decline chief. While the spirits indus-
in exports to key European try faced stiff headwinds in
markets. At home, U.S. sales Europe, it built up more mo-
posted solid gains, espe- mentum in the U.S.
cially for pricier premium Overall domestic supplier
brands, the Distilled Spirits sales rose 5.3% to a record
Council reported Wednes- $29 billion in 2019, the coun-
day. For distillers, it was the cil said. Total volumes were
proverbial glass-half-full, up 3.3% to a record 239 mil-
glass-half-empty, scenario. In this June 20, 2018 file photo, Catoctin Creek Distillery whiskey is on display in a tasting room in lion cases, it said.
"While it was another strong Purcellville, Va. Spirits continued to gain
year for U.S. spirits sales, the Associated Press market share versus beer
tariffs imposed by the Euro- duced profits or pass along Exports plunged by nearly warehouses in Amsterdam, and wine in 2019, the coun-
pean Union are causing a to customers through high- 44% in Spain, nearly 33% in but with the increased pric- cil said. Combined U.S.
significant slump in Ameri- er prices — and risk losing the United Kingdom and ing due to tariffs, it doesn't revenues for bourbon, Ten-
can whiskey exports," said market share in highly com- almost 20% in France, the move very fast." nessee whiskey and rye
Chris Swonger, the coun- petitive markets. council said. Whiskey producers got a whiskey rose 10.8%, or $387
cil's president and CEO. The tariff headaches con- At Catoctin Creek Distill- shot of relief last year with million, to $4 billion in 2019,
American whiskey makers tinued in 2019, when whis- ery in Virginia, prospects an agreement to end retal- the council said. Domestic
have been caught in the key makers in the U.S saw remain bleak for now to iatory tariffs that Canada volumes were up 8.4% to
middle of a trans-Atlantic their exports decline by rebuild the business it had and Mexico had slapped 26.6 million cases. Rye whis-
trade dispute since mid- 16% to $996 million com- cultivated in Europe before on whiskey and other U.S. key continued its upward
2018, when the EU imposed pared to the prior year, the the tariff fight. products. The new North trajectory with sales growth
tariffs on American whiskey council said in its report. "Tariffs remain in place and American trade agree- of 14.7% to reach $235 mil-
and other U.S. products in American whiskey exports our business has been at ment preserves tariff-free lion. The strongest revenue
response to Trump's deci- to the EU were down 27% in a standstill with virtually no trade for spirits with Amer- growth in the U.S. spirits
sion to slap tariffs on Euro- the last year, it said. Ameri- revenue coming in from Eu- ica's two neighbors, the market continued to come
pean steel and aluminum. can whiskey accounts for rope," said Scott Harris, co- council said. from high-end premium
Those duties amount to a 65% of all U.S. spirits exports, founder and general man- Catoctin Creek has man- and super-premium prod-
tax, which whiskey produc- and the EU is the top export ager of Catoctin Creek. aged to gain a foothold ucts that fetch the highest
ers can either absorb in re- market for whiskey makers. "We do have whiskey and in Mexico, where it sold a prices.q
Super Bowl run-up helps boost N.J. gambling revenue

By WAYNE PARRY sults in January," said James New Jersey Casino Control
Associated Press Plousis, chairman of the Commission. q
ATLANTIC CITY, N.J. (AP) —
Betting on the NFL playoffs
in the run-up to the Super
Bowl, along with soaring
internet gambling revenue
and a solid month at Atlan-
tic City's brick-and-mortar
casinos led to an increase
in New Jersey's gambling This June 20, 2019 photo shows gamblers playing slot machines
revenue of more than 30% at the Hard Rock casino in Atlantic City, N.J.
in January. Associated Press
Figures released Wednes- and basketball, leading to ued its steady climb in New
day by the New Jersey Di- the third-highest monthly Jersey, with casinos winning
vision of Gaming Enforce- total since the state began more than $55 million on-
ment show the industry offering legal sports betting line in January, an increase
won over $300 million last in June 2018. Those bets of 64% from a year ago.
month, up 30.9% from Jan- generated $53.5 million in And business at the brick-
uary 2019 when sports bet- revenue for the casinos and-mortar casinos in At-
ting was not as developed and two racetracks that lantic City was solid if not
as it is now in the state. offer sports betting, an in- spectacular, with revenue
Gamblers wagered over crease of over 185% from a up 8.3% to over $192 million.
$540 million on sports in year ago. "Atlantic City continued its
January, mainly on football Internet gambling contin- momentum with strong re-