NEWS. CULTURE. COMMON SENSE.
CreateJoin

Iconic Beer Moves Production to U.S. Over Trump Tariffs

Sapporo Breweries is preparing to move production of its non-alcoholic beer for the U.S. market from Canada to the United States as rising tariffs put additional pressure on its North American operations. The Japanese brewer currently makes Sapporo 0.0% for American customers at facilities operated by its Canadian subsidiary, Sleeman Breweries.

Sapporo acquired Sleeman in 2006. The Canadian company operates breweries in Ontario, British Columbia, Quebec and Alberta. The shift comes after the United States imposed 50% tariffs on roughly $20 billion in Canadian goods beginning Aug. 22. Canada subsequently imposed retaliatory tariffs ranging from 15% to 50% on hundreds of U.S. products.

Sapporo Chief Strategy Officer Rieko Shofu told Bloomberg that the company expects to relocate production of the non-alcoholic beer during the first half of 2027.

“Tariffs are something out of our control,” Shofu said. “We’re going to move ahead with local production.”

She said the higher duties are expected to have a significant impact on the company, particularly next year. Asked when Sapporo could expand production in the United States, Shofu answered, “Next year.”

Sapporo is also considering expanding its manufacturing presence on the West Coast, potentially through a new brewery, an acquisition or agreements with outside manufacturers.

“The US 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.

Sleeman later emphasized that any production transfer remains limited and has not been finalized. The company said Sapporo 0.0% made in Canada for the U.S. represents only 0.5% of Sleeman’s total Canadian production.

“To clarify recent media reports, the potential relocation of Sapporo 0.0% production for the U.S. market from Sleeman Breweries’ Canadian facilities to Sapporo USA’s U.S. facilities is not imminent or finalized,” the company said.

Sleeman also said it remains committed to Canadian production and currently has no plans for the change to affect jobs at its Unibroue brewery in Chambly.

The potential move is part of a broader restructuring of Sapporo’s North American manufacturing operations. Earlier this year, the company said its Richmond, Virginia, facility would become the primary U.S. production site for the Sapporo brand, while brewing at its Escondido, California, plant is scheduled to end by the close of 2026.

Sapporo has estimated that U.S. tariffs could negatively affect its fiscal 2026 results by ¥1.2 billion, compared with ¥800 million in fiscal 2025. The company has not yet publicly identified which U.S. facility would produce the relocated Sapporo 0.0% volume.

ANALYZING AMERICA

Join the Conversation

0 comments

Share your perspective and reply to other readers.

Free account required. You will stay on this page.
Be the first to comment.