Canada's Distillery Industry
The Canadian distillery products industry, North American Industry Classification System (NAICS) 31214, comprises establishments that are primarily engaged in distilling liquor (except brandy), blending liquor, or blending and mixing liquor and other ingredients.
The industry also includes establishments primarily engaged in manufacturing ethyl alcohol, whether or not the alcohol is used to make potable spirits. Products of NAICS 31214 include beverage spirits (except brandy), alcoholic eggnog, potable ethyl alcohol, alcoholic mixed drinks, and whisky manufacturing.
The distilled spirits industry has a long history in Canada. The first distillery in Canada was established in 1769 in Quebec City. Today’s distilling industry produces a variety of spirits (e.g. whisky, rum, vodka, gin, liqueurs, spirit coolers, and basic ethyl alcohol) but Canada's reputation, domestically and internationally, is largely based on the production of Canadian whisky.
In 2012, 38 establishments were operating in Canada with the majority in Ontario (10), British Columbia (9) and Quebec (8). The industry generated revenues of $744 million and employed 1,280 people. Sales of spirits in Canada totalled 222 million litres in 2013, with 148 million litres representing Canadian spirits. Canadian production of distilled spirits is highly concentrated among a few firms and the bulk of domestic spirits production in Canada is foreign-owned. The industry is a net importer of spirits, with imports totalling $914.2 million in 2014 while exports amounted to $602.9 million in the same year. The United States accounts for 90% of exports; the majority of imports come from the United States (37%), followed by the United Kingdom (20%), Ireland, France, and Mexico.
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The following figures are in millions of Canadian dollars.
|Canadian market (imports and domestic shipments)||1,095.50|
|Sales of goods manufactured (exports and domestic shipments)||744.20|
Source: Statistics Canada
Between 2004 and 2012, sales of goods manufactured by the Canadian distilling industry decreased 2.4% from $762.3 million to $744.2 million. Imports of spirits had an average annual growth rate of 6.6% during the same period while exports shrank at an average annual rate of 1.2% before rising again in 2013. As a result, imports represent a greater proportion of the domestic market, increasing to 80% in 2012 compared to 74% in 2004. Between 2004 and 2012, direct employment declined from 1,969 employees to 1,280. In recent years there has been an increase in the number of smaller distilling companies that specialize in supplying niche market products, and the emergence of a number of artisan distilleries located throughout Canada that make small batches of spirits such as vodka, gin, brandy liqueur and Canadian Whisky.
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|Sales of goods manufactured (in millions of Canadian dollars)||762.29||782.95||744.28||837.40||743.95||693.82||722.05||729.81||744.22|
|Employment (number of people)||1,969||1,966||1,773||1,671||1,391||1,213||1,259||1,264||1,280|
Source: Statistics Canada
Note: The manufacturing statistics cited in this profile are taken from Statistics Canada’s Annual Survey of Manufactures and Logging, which lags behind the current date by at least 2 years.
|Principal statistics [a]||2004||2005||2006||2007||2008||2009||2010||2011||2012||2012/11||AAG [b]
|Employment total (number of employees)||1,969||1,966||1,773||1,671||1,391||1,213||1,259||1,264||1,280||1.3%|
|Employment – production (number of employees)||1,402||1,427||1,256||1,148||981||844||830||806||785||−2.6%|
|Employment - administration (number of employees)||567||539||517||523||410||369||429||458||495||8.1%|
|GDP (millions of chained 2002$)||830.5||852.4||852.0||1,001.2||912.0||879.9||899.9||906.4||954.4||5.3%|
|Total revenue (millions $)||410||376||396||451||354||385||420||355||413||16.3%|
|Revenue from goods manufactured (millions $)||762.3||783.0||744.3||837.4||744.0||693.8||722.1||729.8||744.2||2.0%|
|Value-added, goods manufactured (millions $)||453.1||469.8||368.2||444.2||344.2||343.3||273.9||269.9||298.4||10.6%|
|Value-added/worker, goods manufactured (millions $)||0.32||0.33||0.29||0.39||0.35||0.41||0.33||0.33||0.38|
|Value-added as % of revenue from goods manufactured||59.4%||60.0%||49.5%||53.0%||46.3%||49.5%||37.9%||37.0%||40.1%|
|Domestic market (millions $)||710.5||887.6||899.5||1064.4||1117.9||1011.5||1130.0||1103.5||1095.5||−0.7%||0.6%|
|Global trade statistics [a]||2004||2005||2006||2007||2008||2009||2010||2011||2012||2013||2013/12||AAG [b]
|Exports (millions $)||575.7||438.2||443.4||439.5||395.4||409.3||388.5||460.8||523.1||622.6||19.0%||9.5%|
|Exports as % of revenue from goods manufactured||75.5%||56.0%||59.6%||52.5%||53.2%||59.0%||53.8%||63.1%||70.3%|
|Imports (millions $)||523.9||542.9||598.6||666.5||769.3||727.0||796.5||834.4||874.4||884.6||1.2%||2.8%|
|Imports as % of domestic market||73.7%||61.2%||66.5%||62.6%||68.8%||71.9%||70.5%||75.6%||79.8%|
|Balance of trade (millions $)||51.8||−104.7||−155.2||−227.0||−373.9||−317.7||−408.0||−373.6||−351.3||−262.1|
|Trade statistics with the United States [a]||2004||2005||2006||2007||2008||2009||2010||2011||2012||2013||2013/12||AAG [b]
|Exports (millions $)||497.3||357.8||358.0||368.5||331.1||348.2||347.1||386.6||437.2||547.1||25.2%||10.6%|
|Imports (millions $)||136.5||138.3||151.5||184.2||302.5||292.6||326.9||332.1||344.0||337.9||−1.8%||2.2%|
|Balance of trade (millions $)||360.8||219.5||206.4||184.3||28.5||55.6||20.2||54.5||93.2||209.3|
For more information about Canada's food industry, read Significance of the Food and Beverage Processing Industry in Canada or contact the Sector Development and Analysis Directorate at firstname.lastname@example.org.
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