Jack Daniel's maker Brown-Forman kept its annual forecasts unchanged on Wednesday amid tariff threats even as it missed quarterly sales and profit estimates, sending its shares up nearly 10% in early trading.

Brown-Forman reported a 3% decline in Q3 sales to $1.03 billion, missing estimates. However, the company exceeded EPS expectations at $0.57. Despite a contraction in operating margin, gross margin expanded by 40 basis points.

Canadian provinces have removed U.S.-made alcohol from shelves in response to tariff enacted by President Donald Trump.

Forman's CEO Lawson Whiting said on Wednesday Canadian provinces taking American liquor off store shelves was "worse than a tariff" and a "disproportionate response" to levies imposed by the Trump administration.

Canadian provinces pulling US alcohol off store shelves in response to Trump trade policy is "worse than tariffs", the boss of Jack Daniel's maker Brown-Forman has said. Several Canadian provinces, including Ontario, which is by far the most populated, took action this week in retaliation for US tariffs on Canadian goods.

Canada accounts for only 1% of Jack Daniel's total sales, so Whiting said in an earnings call that the company can survive the hit.

On March 5, President Trump suspended tariffs on imports from Mexico and Canada. The move came as liquor companies in Kentucky and nationwide braced for theimpact from retaliatory maneuvers from neighboring countries after export tariffs took effect earlier this week.

Brown Forman, the maker of Jack Daniel's liquor, warned investors after some Canadian officials reacted to U.S. President Donald Trump's tariffs by pulling American booze from the shelves. CEO Lawson Whiting gave the warning in a post-earnings call Wednesday,