Canada beer sales (TAP)
Total beer volumes in Canada declined 2.6% in September YOY, decelerating from flat in August. Domestic beer volumes decreased 0.2%, while imported beer volumes decreased 16.8%, as seen in the chart below. Export beer volumes increased 5.5% in August YOY. 85% of the beer consumed in Canada is made in Canada.
Whiskey tariffs end (BF.B)
The Biden administration and the EU agreed to end a trade war that led to tariffs on alcohol, steel, and aluminum, among other goods. The EU assessed American whiskeys with a 25% tariff, leading to a 37% decline in exports since 2018. The tariffs on whiskey will be suspended on January 1. The EU and the UK are the largest export markets for American whiskey. The UK still has a tariff on American whiskey, as it has to negotiate separately since BREXIT.
Edible Garden (EDBL)
Edible Garden filed its S-1 registration statement yesterday. Edible Garden is an indoor grow agriculture company. The company grows organic herbs and lettuces. Herbs and lettuces are among the optimal types of produce to grow and transport given their weight, retail price, resources it takes to grow, and seasonality. However, a large number of indoor grow facilities cultivate herbs and lettuce for the same reasons. Of the 80 acres of growing capacity the company currently has, Edible Garden operates only five. The company had revenue of $10M in the year ended June 30. It had adjusted EBITDA of -$1.9M in the most recent six months.
Despite the poor trading performance of AppHarvest and the called-off SPAC merger of AeroFarms, Edible Garden is seeking an IPO because it needs financing. In addition, management plans to scale the business by owning and operating commercial greenhouses across North America.
