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Bloomberg reports that Japanese brewer Sapporo is preparing to move production of some beer destined for the US from Canada to domestic US facilities, as a new 50% tariff on Canadian beer increases the cost of cross-border supply.
According to reporting, the company plans to relocate production of its non-alcoholic Sapporo beer, currently manufactured in Canada for the US market, to the US by the first half of 2027.
Sapporo chief strategy officer Rieko Shofu described tariffs as “something out of our control” and told Bloomberg that the brewer would “move ahead with local production” in response to the new trade environment.
The potential move would affect Sapporo’s Canadian subsidiary, Sleeman Breweries.
The company stressed that the non-alcoholic Sapporo product is the only version of the Japanese beer currently produced in Canada, accounting for approximately 0.5% of Sleeman Breweries' total Canadian production, with most output serving the domestic market.
To reduce the impact of tariffs and rising cross-border logistics costs, Sapporo is considering expanding its manufacturing footprint on the US West Coast.
Options reportedly include building a new brewery, acquiring an existing facility or working with a third-party manufacturer.
For Sapporo, the US is a strategically important overseas market. The company has been expanding its presence in the country for several years and says its flagship Sapporo brand is the best-selling Asian beer brand in the US.
It is also looking outside North America, having recently announced a partnership with Danish brewer Carlsberg to expand in Southeast Asia.
The US introduced new tariffs on a range of trading partners in July, including Canada, increasing costs for businesses dependent on cross-border supply chains. US Brewers and other beverage producers face the introduction of a 50% tariff on beer imported from Canada.
The US and Canada were undergoing trade review talks this summer with hopes to agree on a deal, but negotiations fell through last month.
