Americans fond of a strong drink in a bar should prepare for a sober increase in prices, with the connoisseurs of Scottish whiskey potentially assimilating an additional dollar on average per drink, thanks to US tariffs on goods from the United Kingdom and Europe, according to an analysis of the shared industry exclusively with Reuters.
Other EU alcoholic beverages, such as French champagne, Irish whiskey and Italian prosecco, could see price increases, with tariffs affecting about 10 billion dollars of these imports each year. The affected brands include Diageo Guinness and Irish Whiskey Jameson by Pernod Ricard.
The 15% tariff of the US president, Donald Trump, on the imports of the European Union could increase the wholesale prices of wines and spirits in more than 80 cents per gallon on average, with an increase less than 3 cents for beer, showed the analysis commissioned by the Wine & Spirits Wholes of America commercial association.
The levies could raise 987.1 million dollars in federal revenues, once lost sales are taken into account, he said, with the costs probably transferred to US companies and consumers over time, causing sales and jobs losses.
The US is, however, the largest market for the main liquor producers among Western countries and for most European producers of wines and spirits.
Impact on consumers
The analysis evaluated the impact of tariffs if the encumbrances are transferred entirely. Liquor imports previously enjoyed zero tariff.
It was found that US tariffs, including a 10% lien to the United Kingdom products such as Scottish whiskey in the port, could significantly increase the price per bottle in a bar or other establishment, once additional costs are added by margins and taxes.
For a 750 milliliters bottle of Scottish whiskey, an average tariff of $ 1.92 in the port could translate into an increase of more than $ 12 per bottle in the bar, said the analysis, made for the WSWA by the New York economic research firm John Dunham & Associates.
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Assuming just over 12 two -ounce drinks per bottle, that would mean an additional dollar for drink at the bar on average.
Cutter Smith, who will assume the position of president of the WSWA in September, said that in some cases the wholesale prices were already increasing.
“It is a case -by -case decision and, in some cases, marked by brand, but something is safe: if these tariffs are maintained, they will move to the consumer,” he said.
Tariffs have arrived just when the United States prepares for the party season that begins in October, when alcohol sales increase due to celebrations and gifts.
Pernod Ricard and Diageo declined to comment on the analysis.
Vyou leave down
Relatively small tariffs on Irish whiskey and Polish vodka also increase as they reach bars or other establishments, found the analysis, which generates an average price increase of 26 or 52 cents, respectively, for each two -ounce drink.
Wine and liquor industries hoped to obtain an exemption from EU tariffs, but they did not find relief in a commercial framework agreement insured on Thursday.
Sales in the United States are already in decline, since consumers tired of inflation or health conscious reduce their consumption.
A Gallup survey in August found that the alcohol consumption reported in the US.
Analysts point out that preferred high -end brands by wealthy consumers should be less sensitive to price changes, while cheaper and mid -range labels will probably see demand decrease as prices rise.
Some national producers could benefit if their wines and liquors are cheaper than those of imported competitors, but others are not safe or fear retaliation tariffs.
The analysis found that European wines would be the most affected by the 15%tariff, with an average increase of 86 cents per gallon in wholesale prices, followed by liquors with 82 cents and beer with 3 cents.
Some alcohol producers increased shipments to the United States before tariffs, creating a stock of products to sell without rates.
And some liquor manufacturers, such as Campari and Diageo, have indicated that prices will not rise or take other mitigation measures to prevent tariff costs from moving to the consumer, at least for now.
With Reuters information
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