Corby Spirit and Wine (TSX: CSW.A) stock fell 2.9% after US President Donald Trump dropped a 50% tariff bombshell on Canadian imports to the US in August. A 50% tariff on Canadian alcohol is as good as making it inaccessible to consumers. This tariff came in retaliation for the March 2025 movement of “Buy Canadian,” in which Canada literally pulled American-made spirits off its shelves to retaliate against Trump’s first tariff wave of 25%. At that time, the Liquor Control Board of Ontario (LCBO) said this move would continue until it’s “directed by the government to resume normal business.” After one and a half years, American spirits remain off the tables.
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Where does Corby Spirit and Wine fit in the tariff war?
Corby Spirit and Wine is Canada’s largest spirits and wine company. It produces and distributes its own brands under the segment Case Goods and markets partner brands under the segment Commissions. Its partner brands include global leader Pernod Ricard, which owns a 46% stake in Corby.
Since more than 90% of Corby’s revenue comes from Canada, it was a key beneficiary of the “Buy Canadian” program. The exit of American-made spirits from Canadian shelves helped Corby cut competition effortlessly. It just had to fill those empty shelves with its wines and spirits and capture market share. The impact was visible in the first half of fiscal 2026, which ended December 2025, when its revenue grew 12%. Its domestic revenue jumped 13% and international revenue 38%, driven by expansion in Turkey and recovery in the US and UK markets.
Trump tariffs: 2025
In the March 2025 scenario, Canada took US alcohol off the shelves, but Canada was still exporting alcohol to the US. It was a win-win for Corby as both domestic and export sales surged. Corby’s stock jumped as much as 18.8% between February 7 and March 7, 2025.
Trump tariffs: September 2026
The 50% tariff on Canadian imports in September 2026 will sweep away the American market for Corby as consumers are more likely to switch to cheaper American options. Corby’s overall export market is 7% of its revenue, and the revenue from the United States is $2.7 million, just 1% of its fiscal 2026 revenue.
For the US market, Corby manufactures and ships spirits to third-party US distributors, which have a three-tier distribution system. This makes the pipeline lengthy. Corby could see a slight dip in export sales in the second quarter ending December 2026 as it realizes revenue when it ships the products. American consumers would still be able to buy Corby’s products at the same price until the retailer and wholesaler stock lasts.
Should you buy, sell, or hold Corby?
Trump’s tariffs sent Corby’s stock down 3.2%, extending its seasonal dip that began in August after the LCBO modernized its ordering system, which created a few onboarding delays. Trump tariffs are unlikely to materially impact Corby’s earnings, creating an opportunity to buy the dip as LCBO orders normalize.
| Corby Spirits Fundamentals | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
| Revenue ($ millions) | 271.6 | 246.8 | 229.7 | 163 | 159.4 | 159.8 |
| YoY growth | 10% | 7% | 41% | 2% | 0% | 4% |
| Net Earnings ($ millions) | 33.4 | 27.4 | 23.9 | 22 | 23.4 | 30.6 |
| YoY growth | 22% | 15% | 9% | -6% | -24% | 15% |
| Long-term debt and lease liabilities ($ millions) | 103.1 | 103.9 | 121.6 | 100.3 | 2.5 | 3 |
I do not see any major roadblocks in Corby stock’s run-up to the next seasonal peak in July 2027. In fact, the company is expanding its share in the RTD segment and has increased its distribution channels to include grocery, convenience, and big-box stores.
Fiscal year 2026 has been the best year for organic growth. Fiscal 2024 revenue growth was driven by ABG and Nide brand acquisitions. A major concern for Corby is its high debt, which is keeping its stock range-bound.
How to place Corby in your portfolio?
Corby is a small-cap stock with limited trading volume. This makes it difficult to trade except when volumes pick up. You could consider buying the stock as a short-term opportunistic buy for its 6.7% dividend yield till American-made alcohol stays out of the market.
