Sapporo Breweries Shifts U.S. Production from Canada to the U.S. amid Trump's 50% Tariff

Interview with Executive Vice President Shofu by Bloomberg

Shift from Canadian Production to U.S. Export Products

Considering Acquisition of Brewery, New Plant, and Other Options

As a result of the United States imposing a 50% tariff on Canadian imports, Sapporo Breweries of Japan announced that it will shift part of its U.S. export production, which had been manufactured in Canada, to production within the United States.

On the 8th, Rieko Shofu, Executive Vice President of Sapporo Breweries, stated in an interview with Bloomberg, "We will transition production of some goods, including non-alcoholic beer, which were previously produced in Canada and exported to the U.S., to local manufacturing within the U.S."

Local U.S. production is scheduled to begin in the first half of next year. Reportedly, the company is also considering various options, including acquiring a brewery on the West Coast, building a new plant, or outsourcing production to a local contract manufacturer.

'Sapporo Premium Beer' sold in Canada. Sapporo Breweries.

According to Bloomberg, the relocation of production is directly linked to the tariff policies of the U.S. administration under President Donald Trump. The Trump Administration's tariff measures have consistently been a negative factor for profit margins at Sapporo Breweries’ U.S. operations. Furthermore, the Trump Administration imposed an additional 50% tariff last month, on the 22nd (local time), on Canadian alcoholic beverages such as beer and wine, further increasing the cost burden. Executive Vice President Shofu said, "This 50% tariff hike will have a significant impact next year."

Sapporo Breweries aims to improve the profitability of its underperforming U.S. operations through this production shift. According to Bloomberg, the company plans to complete the relocation and restructure its U.S. business by next year, and afterward concentrate its resources on its own brands. Sapporo Breweries’ flagship product, 'Sapporo Premium Beer,' has maintained the leading market share among Asian beer brands in the U.S. since 1986, reflecting its high brand recognition locally.

Executive Vice President Shofu added, "The U.S. is a huge market," and stated, "Given Sapporo Breweries’ current growth, I believe we can further increase our market share by expanding production capacity within the U.S."

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