Sapporo shifting some of its Canadian production to the U.S. in response to American tariffs
· Toronto Sun
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Perhaps call it the first major domino to topple in the tariff war between the United States and Canada.
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Sapporo Breweries Ltd. is transferring some of its production from Canada to the United States due to the 50% tariffs slapped on beer exports, hoping to re-energize its North American operations.
The Japanese brewer, which ranks top five in its domestic market, is also trying to expand its operations on the West Coast of the U.S., as the company hopes to position itself in one of the world’s biggest markets.
American President Donald Trump’s tariffs on beer made in Canada are the latest saga for the Tokyo-based brewer.
“Tariffs are something out of our control,” Chief Strategy Officer Rieko Shofu said in an interview with Bloomberg News. “We’re going to move ahead with local production.”
Acquisition phase
After the acquisitions of Stone Brewing and Anchor Brewing failed to produce the results, the company is looking to revamp by moving some production to the U.S. market.
In order to deliver more of its beer into the U.S. market, Sapporo acquired California-based Stone Brewing Company for $165 million US in August 2022. They recently sold the business to Firestone Walker and Duvel Moortgat USA for an undisclosed amount. Sapporo also purchased California-based Anchor Brewing Company for $85 million US in 2017. The business was closed down in August 2023.
Sapporo says they will move production of non-alcoholic beer, currently made in Canada, for the American market by the first half of next year. Sapporo is either looking to purchase or build another brewery on the West Coast of the U.S. or consolidate with other manufacturers.
“The U.S. 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.
The shift of its non-alcoholic production to the U.S. could have effects in the Greater Toronto Area, as Sapporo purchased Guelph-based Sleeman Brewery for approximately $400 million in 2006. Sleeman employs around 1,000 people in Canada.