Sapporo Considers Relocating Some Operations From Canada to US Amid Tariff Fallout

Sapporo Breweries Limited is considering a plan to move its non-alcoholic beer production from Canada to the United States in 2027, a decision reportedly influenced by the 50 percent tariffs imposed on beer exports from Canada, a company official says.

The Japanese brewing company’s reported plans come after U.S. President Donald Trump imposed a 50 percent tariff on Canadian beer exports. The tax officially took effect on Aug. 22.

“Tariffs are something out of our control,” chief strategy officer Rieko Shofu said in an interview with Bloomberg News. “We’re going to move ahead with local [U.S.] production.”

A spokesperson later told Global News that the decision isn’t certain yet, and that its non-alcoholic product accounts for only 0.5 percent of its Canadian output.

The relocation of its non-alcoholic production to the United States could have repercussions in the Greater Toronto Area. Sapporo acquired Sleeman Brewery for roughly $400 million in 2006, allowing the historic Canadian brand to expand its reach while keeping its major operations rooted in Guelph, Ont.

Sleeman currently employs some 1,000 workers across Canada.

Sapporo, which is among the top five in its home market, is also looking to expand operations on the West Coast of the United States, Shofu said.

The company is considering either acquiring or constructing an additional brewery on the West Coast, or potentially merging with other American manufacturers, she said.

“The U.S. is a huge market, and we have a lot of momentum right now in terms of how much we can expand our share of that market,” Shofu said.

Sapporo purchased Stone Brewing Company in California for $165 million in August 2022 to increase its beer distribution in the U.S. market, but recently sold the business to Firestone Walker and Duvel Moortgat USA for an undisclosed sum.

Sapporo also purchased the California-based Anchor Brewing Company for US$85 million in 2017, but the business was closed in August 2023.

Trump recently encouraged Canadian companies that do business with the United States to shift their operations southward.

“Let all Canadian Companies that are doing business with America move to the United States, immediately,” he wrote in an Aug. 30 Truth Social post. “Many of them are Companies that moved out years ago due to stupid U.S. Leadership. When you move back, there are no TARIFFS!”

Other companies operating in Canada have expressed intentions to move their production to the United States. Stellantis said last year it would shift a large portion of its manufacturing footprint and vehicle production to the United States.

The United States imposed a sweeping 50 percent tariff on $27.6 billion worth of Canadian goods on Aug. 22 after bilateral trade negotiations collapsed between the two nations.

Canada’s retaliatory counter-tariffs ranging from 15 to 50 percent on $27.6 billion worth of American goods took effect on Sept. 8.

The tariffs sharply increase the cost of cross-border business for some companies.

Ottawa has announced a $7.5 billion support package—including the Canada Strong Diversification Fund—to bolster emergency loans for impacted companies.