Sapporo beer moving production to U.S. from Canada on tariffs

Sapporo will move production of non-alcoholic beer currently made in Canada for the U.S. market by the first half of 2027. Photo by Alex Tai/SOPA Images/LightRocket via Getty Images

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The Japanese brewer, which makes the top-selling Asian beer in the U.S., is also considering adding manufacturing capacity on the West Coast as it seeks to expand its flagship brand in one of its biggest overseas markets, chief strategy officer Rieko Shofu said in an interview.

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U.S. President Donald Trump’s levies on beer made in Canada are the latest twist for the Japanese brewer. The production shift plans are part of a broader revamp following years of acquisitions that failed to deliver sufficient returns. The company sold Stone Brewing in 2022 and liquidated Anchor Brewing in 2023.

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

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Sapporo will move production of non-alcoholic beer currently made in Canada for the U.S. market by the first half of 2027. Sapporo is considering acquiring or building a brewery on the West Coast, or contracting with other manufacturers, the executive said.

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Rieko Shofu, in Tokyo on Sept. 3. Photo by Bloomberg

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U.S. tariffs of 50 per cent on about US$20 billion worth of Canadian goods took effect on Aug. 22. Canada’s retaliatory tariffs of 15 per cent to 50 per cent on hundreds of U.S. products went into effect Tuesday.

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“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.

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Shares of Sapporo were up one per cent in Tokyo trading Tuesday, while rival beermakers Kirin Holdings Co. and Asahi Group Holdings Ltd. were down or unchanged, in line with the broader Topix Index.

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The brewer is accelerating investments in its beer business after deciding last year to sell its real estate business. Sapporo plans to spend ¥300 billion to ¥400 billion (US$1.9 billion-US$2.6 billion) on investments, including acquisitions, through 2030 as it seeks to grow operating profit to ¥40 billion from around ¥24 billion last year. Roughly 30 per cent of that is targeted to come from overseas.

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Asia is another focus. Sapporo announced a venture with Carlsberg A/S in July to expand in Southeast Asia. The company is also seeking investment opportunities in China and South Korea, according to Shofu.

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At home, where Sapporo is the No. 4 beermaker, the company faces a different challenge as Japan’s shrinking population weighs on long-term alcohol consumption. Shofu said the company has a “considerable sense of urgency” about the domestic market and isn’t ruling out greater supply-chain cooperation with rivals over the longer term.

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