The company is accelerating the movement of its popular Kentucky Bourbons including Yellowstone Select (46.5% ABV), Rebel 100 (50% ABV) and Ezra Brooks 99 (49.5% ABV), as it aims to protect retail selling prices for consumers.
“The inventory that we had scheduled for shipping in quarters two and three this year, will now arrive in Europe before the end of March,” said Luxco’s MD of international business, Greg Mefford. “We’re going early to minimise how any future changes in trade tariffs impact the pockets of American whiskey fans across Europe and the UK.
“There’s uncertainty about what the US government will or won’t do with trade tariffs and a looming 31 March deadline. After this date, American whiskey entering Europe will be exposed to a 50% tariff. We’re working on cost and pricing strategies to mitigate this, and early shipping is one option that we’re pursuing.”
In December 2023, President Biden signed an agreement with the EU that suspended retaliatory tariffs on US distilled spirits and EU steel and aluminium. The suspension for US distilled spirits entering the EU is due to end on 31 March 2025, with any changes to this possibly hinging on renegotiations for US tariffs on imports of EU steel and aluminium.
“Retaliatory trade tariffs seem counterproductive for local and international markets, whether that’s the country exporting or importing,” Mefford added. “We welcome international trading agreements that are pro-trade and pro-consumer, which avoid pricing people and businesses out of markets, and support growth opportunities throughout supply chains.”
Kentucky-based Limestone Branch Distillery, which is part of Luxco, recently announced it was increasing exports of its Yellowstone American Single Malt Whiskey (54% abv) to the UK and Europe by 22%. The boost followed the Alcohol & Tobacco Tax & Trade Bureau (TTB) establishing American single malt whiskey as a US Government-recognised and protected style, leading to growing demand for the Yellowstone expression.
