The Spirits Post is an international press review about the spirits industry brought to you by Eugenia Torelli, an Italian spirits journalist and judge. If this newsletter was forwarded to you by a friend, you can subscribe here to receive it directly in your inbox:
Hello everyone!
After a long pause in August, I’m back with a recap of the most significant news from recent weeks.
We begin with the collapse of US-Canada trade talks and what it means for American whiskey and Canadian spirits alike. I’ve added a few extra reads at the bottom of that section for a fuller picture of how we got here. From there, we look at the US market: Americans’ drinking keeps hitting record lows, according to Gallup, while California extends cocktails-to-go for another three years. Over in the UK, a former prison becomes a whisky distillery, and Speyside’s leftovers are about to heat Scottish homes. Jumping to Mexico, the agave crisis takes on a political dimension, followed by market analysis from the IWSR on the potential of Sub-Saharan Africa and an update on what “premiumisation” actually means today.
I’ll wrap things up with a few reads I found interesting on Indian spirits.
Enjoy!
US-Canada trade wars
Talks collapse, tariffs bite: American whiskey shut out of Canada again
Trade negotiations between the US and Canada broke down on Friday 21 August, triggering a 50% US tariff on Canadian goods, including spirits. This comes in response to the Canadian boycott of American alcohol that has been in place across most provinces since March 2025. Discus CEO Chris Swonger blamed Canada’s “discriminatory” provincial bans, while American Whiskey Association CEO Michael Bilello called it “unfinished business,” noting that hopeful signs of progress had emerged just hours before talks fell apart. So far, only Alberta and Saskatchewan have lifted their bans on US spirits.
Read the news on Global Drinks Intel:
‘Unfinished business’ for American whiskey as US-Canada trade talks collapse
For a fuller picture of the situation, here are three further reads.
Fiona Holland’s article for Just Drinks reports that US industry coalition Toasts not Tariffs is urging both governments to return to the table quickly, warning that the new tariffs will also hurt US hospitality businesses.
The BBC covered Canadian PM Mark Carney’s response, including his pledge to match the US tariffs “dollar for dollar” with retaliatory measures from 8 September.
Carney’s full press conference, in which he accuses the US of asking “too much” while offering “too little,” is available to watch here.
USA
Americans’ drinking hits a record low, again
A new Gallup poll finds that just 54% of US adults say they drink alcohol, matching last year’s record low and marking the lowest figure since Gallup began tracking the question in 1939. Fifty-one percent now believe moderate drinking is bad for health, while self-reported overdrinking has also fallen to a new low of 13%.
Read the news on Gallup’s website:
California extends cocktails-to-go for another three years
California has passed Assembly Bill 2663, extending venues’ ability to sell sealed cocktails-to-go alongside a meal until 2029, ahead of Governor Gavin Newsom signing it into law. The measure, originally a pandemic-era lifeline, was due to expire this year. Discus’s Adam Smith called it a boost for local businesses and consumer convenience. California joins New Jersey and New York as states operating under temporary extensions, while 32 states and DC have already made cocktails-to-go permanent.
Read Discus’s press release on their website:
California Legislature Passes Bill to Extend Cocktails To-Go Until 2029
UK
Former Cornish prison to house new English whisky distillery
Cornwall Council has approved plans for The Bodmin Jail Distillery, part of an £80 million restoration of the former Victorian prison by Swiss private equity group Spirit Capital, owner of several Calvados and Armagnac brands. The grain-to-glass distillery will focus on English whisky alongside gin and vodka, creating 15 permanent jobs, with an opening expected in 2027.
Read Nicola Carruthers’ article for The Spirits Business:
Whisky waste to power 4% of Scotland’s gas demand
A Speyside biomethane facility run by Grissan, using residues from whisky production, is set to meet around 4% of Scotland’s natural gas demand from 2027, decarbonising energy for the equivalent of more than 30,000 homes. The National Energy System Operator visited the site as part of a wider review of biomethane’s role in the UK’s energy transition.
Read the news on Gasworld:
Whisky waste-to-biomethane plant to meet 4% of Scotland’s gas demand
Italy
Diageo Italy redundancies pushed back to October under new deal
UILA Lombardia and Diageo have reached an agreement softening the redundancy procedure opened on 13 July, which had threatened to dismantle the company’s Italian operations through the outsourcing of sales and distribution. Under the deal signed late on 27 August, the 86 workers declared redundant (ten executives are excluded) will remain employed until 31 October 2026. They will also receive a financial support package scaled to seniority—extended in full to workers still on probation—plus a company-funded outplacement service to assist with re-employment. UILA’s Alberto Donferri reaffirmed the union’s strongly critical view of the layoffs, but noted that the agreement secures vital resources to support workers through the transition.
Read the details in Ernesto Brambilla’s article for Bargiornale:
Mexico
Agave crisis draws political scrutiny as prices collapse
An opinion piece in La Razón argues that Mexico’s roughly 3.5-fold agave overproduction has crashed prices to between 4 and 8 pesos per kilo (down from a peak of 32 pesos), squeezing around 8,000 commercial growers who expanded during the pandemic-era boom. The author notes that despite cheaper raw material, retail Tequila prices have not fallen, pointing specifically to the multinational groups controlling roughly 60% of Tequila production—Diageo, Bacardí, Brown-Forman, Pernod Ricard, and Campari—for capitalising on the oversupply.
Read Mauricio Flores’ column for La Razón:
New markets
Sub-Saharan Africa: huge potential, but no shortcuts
IWSR’s latest analysis finds that total beverage alcohol volumes in Sub-Saharan Africa grew 1% in 2025, with a 2% CAGR forecast through to 2035, driven by young, urbanising populations. RTDs (+11%) and spirits (+6%) led regional growth, while wine declined 3%. However, downtrading rather than premiumisation remains the dominant trend, with consumers migrating from spirits to beer and from imports to local brands. Locally produced products already account for 97% of beer volumes and 80% of spirits. Country highlights include South Africa, where RTDs surged 14% and Cognac grew 18%; Nigeria, where millennials remain the key demographic and Indian whisky is gaining ground on blended Scotch; and Kenya, where Tequila volumes jumped 65% and Irish whiskey rose 35%.
Read Helen Jagger’s article for IWSR:
The next frontier: opportunities and challenges in Sub-Saharan Africa
Market analysis
IWSR rethinks what “premiumisation” really means today
A new IWSR report argues that industry premiumisation gains have been overstated once inflation is stripped out: global price-per-litre growth has trailed inflation every year since 2022. Genuine premiumisation is strongest in RTDs and beer, while premium-plus spirits volumes actually declined in 2025. Consumers’ perception of “premium” is also shifting from status symbols toward meaningful occasions and justifiable quality upgrades, with global travel retail standing out as a rare pocket of authentic, non-inflation-driven premiumisation.
Read Helen Jagger’s article for IWSR:
Premiumisation redefined: from pricing to meaningful moments
Something to read
What makes whisky, rum, and vodka different in India?
I recently came across an insightful article by Arav Shah for the Indian Express discussing the differences between whisky, rum, and vodka in India compared to Western standards.
Read the piece here:
What makes whisky, rum and vodka different? Not much, if you’re in India
I decided to dig a little deeper into the topic and found a slightly more detailed explanation in The Times of India:
Explained: Why some Indian whiskies aren’t considered whiskies by international standards
Are any of you familiar with the Indian spirits market? If you know this space well, I’d love to hear your thoughts and learn more—do get in touch!
That’s all for today. See you soon!
Cheers, 🍹