Japanese brewer Sapporo says it will relocate some beer production from Canada to the US following the introduction of new tariffs on Canadian imports.
The company said the move comes after a 50% tariff on beer imported from Canada took effect on Tuesday, significantly increasing costs for products shipped across the border.
Chief strategy officer Rieko Shofu told Bloomberg that tariffs were “something out of our control” and that Sapporo would continue pursuing local production.
Sapporo said it had not yet finalized the relocation. The company plans to transfer production of its non-alcoholic beer, currently manufactured in Canada for the US market, to facilities in the US by the first half of 2027.
The US is one of Sapporo’s largest overseas markets, making any production shift significant for its Canadian subsidiary, Sleeman Breweries.
Sleeman said on Tuesday that the possible transfer of alcohol-free Sapporo production from its Canadian facilities to Sapporo’s US operations was “not imminent or finalized”.
The company added that alcohol-free Sapporo is the only Sapporo product made in Canada and accounts for just 0.5% of Sleeman’s total production there, most of which is produced for the domestic Canadian market.
To help offset rising costs, Sapporo is considering expanding production capacity on the US West Coast. The company is evaluating options such as constructing or acquiring a brewery, or working with a third-party manufacturer.
Sapporo has been expanding its US operations for several years and says its flagship Sapporo brand is the country’s best-selling Asian beer.
The company is also increasing investment outside Japan, where a shrinking population has weighed on alcohol sales.
Sapporo plans to invest as much as ¥400bn ($2.6bn) by 2030 as it seeks to grow internationally and increase profits. Approximately 30% of the investment is designated for overseas markets.
The brewer is also exploring opportunities beyond North America. In July, it announced a partnership with Danish brewer Carlsberg to expand its presence in Southeast Asia.
Sapporo’s production decision reflects a broader trend as companies adjust to the increasing use of tariffs worldwide.
In July, the US announced new tariffs affecting dozens of trading partners, including Canada, increasing costs for businesses dependent on cross-border supply chains.
The situation illustrates how rising trade barriers are prompting some companies to reconsider where they manufacture goods and serve international customers.
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