EU Whisky Makes Sound the Alarm: Millions of Euros at Stake by Old Treaty

Wednesday, 07 January 2026 at 09:04

European producers of rye whisky are sounding the alarm. Because of an old trade agreement between the EU and Canada, they can no longer officially call their product 'rye whisky'. In an open letter, they’re now urging the EU to take action.

What’s going on with Rye Whisky?

In 2003, the EU and Canada established a trade agreement: the EU–Canada Agreement on trade in wines and spirits. It contains a rather odd clause. The agreement states that only Canada may use the term 'Rye Whisky' for its spirit.

The agreement also included a grace period that has long since expired, but enforcement of the term within the EU simply didn’t happen. That changed when someone rediscovered the forgotten deal and decided to act on it.

Meanwhile, the world has moved on, and countless producers across Europe now make rye whisky. In 2024, Canadian rye whisky is protected through a geographical indication, and the EU already has at least 18 active rye whisky producers.

Together, they have millions of liters of maturing 'rye whisky' and have invested over 100 million euros in production, inventory, and brand building. These investments were made in the belief that the European market is stable, predictable, and fair. Now, that confidence is in doubt.

Rye whisky producers from across Europe are joining forces to call on EU policymakers to act. They’ve published an open letter seeking clarity and a revision of the current arrangements.

Which distilleries are raising the alarm over rye whisky?

The following distilleries have signed the letter:

Kyrö Distillery Company

Stauning Whisky

Thy Whisky

Stork Club Rye Whiskey

SLYRS Bavarian Whisky Distillery

Agitator Whisky

Spirit of Hven

Tevsjö Distillery

Vattudalen

Whiskydestillerie Haider (since 1995)

Gölles Brennerei

Agardi Distillery

Maison Ferroni

Moe Distillery

Zuidam Distillers BV

Sempione Distillery

What does the rye whisky producers’ letter say?

Beyond outlining the problem at hand, the letter clearly explains why the producers want change and what they believe is needed. We’ve summarized it below.

Why change is necessary

The current arrangement harms both European and Canadian producers:

Marketing and growth: Canadian rye whisky doesn’t fully benefit from the marketing investments European distilleries make to grow the category and vice versa.
Consumer confusion: Canadian rye whisky is a specific style where rye doesn’t necessarily have to be the main grain. That differs from rye whisky’s historic roots, like in Pennsylvania (USA), where at least 51% rye is required.
Double protection: Canadian rye whisky is already protected in the EU via a geographical indication. Adding extra protection by reserving the term 'Rye Whisky' entirely is, according to producers, unnecessary.
Transparency and EU values: The fact that rye whisky is the only whisky style where rye isn’t always the primary ingredient is seen as misleading to consumers.

Concrete proposals from European producers

The signatories of the open letter call for:

Immediate preparations to renegotiate the agreement, aiming to remove the term 'Rye Whisky' from the annex.
A joint communications and promotion plan to harness public interest and grow the rye whisky category internationally.
Bilateral cooperation with Canada focused on knowledge sharing, student exchanges, and joint export initiatives.

It’s still unclear how the EU will respond to the letter. An answer may take some time. We’ll keep you updated as the situation develops.