Sapporo says moving zero-proof process to U.S. from Canada ‘not finalized’
The company is considering moving production of its non-alcoholic beer to American breweries, but says 99.5 per cent of its Canadian production is staying put.
Japanese brewer Sapporo announced it will relocate some beer production from Canada to the United States due to new tariffs introduced on Canadian beer on Tuesday. The tariff, which levies a 50% tax on beer imports from Canada, will significantly increase costs for companies shipping beer across the border. Sapporo's chief strategy officer, Rieko Shofu, said the tariffs are beyond their control, and the company plans to proceed with local production.
The beer giant intends to shift production of its non-alcoholic beer, which is currently manufactured in Canada for US customers, to the US by the first half of 2027. Sapporo is one of the company's most important overseas markets, and the shift will directly impact operations at its Canadian subsidiary, Sleeman Breweries. To offset rising costs, Sapporo is exploring options such as building or purchasing a brewery or partnering with a third-party manufacturer on the US West Coast.
Sapporo has been expanding its presence in the US for years, and its flagship Sapporo brand is the country's best-selling Asian beer brand. The company is also aggressively investing outside Japan, with over 30% of its capital earmarked for overseas markets. As companies worldwide adapt to an increasing number of tariffs, Sapporo's decision to move production reflects how some businesses are reconsidering where they manufacture goods due to trade barriers causing higher costs for cross-border supply chains.
Written by urgent.news from BBC Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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