Sapporo Breweries moving some production to U.S. from Canada amid tariff row

Sapporo Breweries is relocating some of its production from Canada to the United States due to tariffs imposed by Washington on beer imports from Canada. The Japanese brewer, which sells the top-selling Asian beer in the U.S., is also looking at expanding manufacturing capacity in the western U.S. as it aims to boost its flagship brand in one of its largest overseas markets, according to Chief Strategy Officer Rieko Shofu.

The production shift plans are part of a wider strategic overhaul following unsuccessful acquisitions. Sapporo sold Stone Brewing in 2022 and liquidated Anchor Brewing in 2023. Shofu stated that tariffs are beyond their control and that the company will proceed with local production. The Japanese brewer plans to introduce non-alcoholic beer made in Canada for the U.S. market by the first half of 2027.

Sapporo is also considering acquiring or constructing a brewery on the American West Coast or partnering with other manufacturers. The brewer is accelerating its investments in the beer business after selling its real estate division last year. Sapporo plans to invest ¥300 billion to ¥400 billion ($1.9 billion to $2.6 billion) in the business through 2030, with roughly 30% of that coming from overseas.

Asia is another priority for Sapporo, with the company announcing a partnership with Carlsberg in July to expand in Southeast Asia and seeking investment opportunities in China and South Korea. Domestically, Sapporo, which is the No. 4 beermaker in Japan, faces a challenge as the country's shrinking population reduces long-term alcohol consumption.

The company has shown a strong sense of urgency about the domestic market and is open to greater supply-chain collaboration with rivals in the future.