Jack Daniel’s to become 10 pct more expensive in the EU

Prices of American whiskey sold in the European Union will increase, following the EU’s implementation of a 25 percent tariff, Brown-Forman Corp. spokesman Phil Lynch announced. Jack Daniel’s prices will feel the impact the most and can go up to 10 percent.

“A 25 percent tariff does not translate into a 25 percent increase on the price of a bottle of Jack Daniel’s,” Lynch told bloomberg.com. According to him, due to advanced shipment in Europe, price increases will roll out over the next couple of months. Also, they will be felt gradually, market-by-market.

As a consequence, Brown-Forman fell to the lowest level in nearly seven months.

“We believe that we are positioned fairly well to withstand the tariffs, but only time will tell how consumers will react in the EU,” Lynch told Bloomberg. According to the company, although Europe is a sizeable market, the US remains its largest market, alongside the 170 other countries around the world. “Of course, it would be far better for all American whiskey companies if this trade dispute between the U.S. and the EU ends before the price increases on Jack Daniel’s take effect over the next few months,” he added.

Last week, the EU started the first phase of retaliation against the US over its metal-import tariffs. The bloc decided to react in kind to the US decision to impose a levy on imported steel and aluminium. The European Commission gave final approval for a 25 percent duty on 2.8 billion euros (USD 3.2 billion) of EU imports of a range of iconic US products including Harley-Davidson Inc. motorcycles, Levi Strauss & Co. jeans and whiskey.