Japanese brewer Sapporo says it will move some beer production from Canada to the US after new tariffs on Canadian beer took effect on Tuesday.
The move follows the introduction of a 50% tariff on beer imported from Canada. For companies shipping beer across the border, that means significantly higher costs.
Chief strategy officer Rieko Shofu described tariffs as “something out of our control,” telling Bloomberg that the beer giant would “move ahead with local production”.
Sapporo did not immediately respond to the BBC’s request for comment. The company plans to shift production of its non-alcoholic beer, currently made in Canada for US customers, to the US by the first half of 2027.
The US is one of Sapporo’s most important overseas markets, and any shift south of the border will directly affect operations at its Canadian subsidiary, Sleeman Breweries.
Sleeman on Tuesday cautioned that the potential relocation of alcohol-free Sapporo production from its Canadian facilities to Sapporo’s US facilities is “not imminent or finalized”.
It added that the alcohol-free Sapporo is the only version of the Japanese beer produced in Canada and represents just 0.5% of Sleeman Breweries’ total production in that country, most of which is made for the domestic market.
To mitigate rising costs, the Japanese brewer is considering adding production capacity on the US West Coast. Options include building or buying a brewery, or partnering with a third-party manufacturer.
Sapporo has been building its presence in the US for years and says its flagship Sapporo brand is the country’s best-selling Asian beer brand.
The company is also investing heavily outside Japan where a shrinking population has weighed on alcohol sales.
Sapporo plans to invest up to ¥400bn ($2.6bn) by 2030 as it seeks to expand overseas and boost profits. Around 30% of the capital is earmarked for overseas markets.
The brewer is also looking beyond North America. In July, it announced a partnership with Danish brewer Carlsberg to expand in Southeast Asia.
Sapporo’s decision to move production comes as companies adapt to a growing number of tariffs worldwide.
In July, the US announced new tariffs on dozens of trading partners, including Canada, raising costs for businesses that rely on cross-border supply chains.
The move highlights how some companies are reconsidering where they make goods as trade barriers increase the cost of serving customers from overseas.
By BBC News
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