Japanese brewer Sapporo announced it will move some beer production from Canada to the United States following the implementation of a 50% tariff on Canadian beer imports that took effect on September 6, 2026. The new tariffs have resulted in significantly higher costs for companies shipping beer across the border. Rieko Shofu, Chief Strategy Officer at Sapporo, stated that tariffs are 'something out of our control' and indicated that the company would 'move ahead with local production.'
Sapporo plans to shift production of its non-alcoholic beer, which is currently produced in Canada for U.S. customers, to the U.S. by the first half of 2027. The U.S. is a key market for Sapporo, and this transition will impact operations at its Canadian subsidiary, Sleeman Breweries.
To address rising costs, Sapporo is considering increasing production capacity on the U.S. West Coast. Potential strategies include building or acquiring a brewery or partnering with a third-party manufacturer. Sapporo has been expanding its presence in the U.S. for several years, claiming its flagship Sapporo brand is the best-selling Asian beer brand in the country.
The company is also investing significantly outside Japan, where a declining population has negatively affected alcohol sales. Sapporo plans to invest up to ¥400 billion (approximately $2.6 billion) by 2030 to enhance its overseas operations and increase profits, with around 30% of this capital allocated for international markets.
In addition to its U.S. plans, Sapporo announced a partnership with Danish brewer Carlsberg in July to expand its reach in Southeast Asia. The decision to relocate production reflects broader trends as companies adapt to increasing tariffs globally. In July, the U.S. introduced new tariffs affecting numerous trading partners, including Canada, which has raised costs for businesses dependent on cross-border supply chains.