‘Tariffs Are Something Out of Our Control’: Sapporo to Move Some Beer Production From Canada to US

Red paper lantern with Sapporo Premium Beer logo hanging outside a restaurant Dec. 4 in Orinda, California. (Photo by Smith Collection/Gado/Sipa USA)(Sipa via AP Images)

Sapporo Breweries is moving some beer production from Canada to the United States as the Japanese brewer responds to steep U.S. tariffs on Canadian-made beer and looks to expand its North American business.

The company plans to shift production of non-alcoholic beer currently made in Canada for the U.S. market to the United States by the first half of 2027, Sapporo Chief Strategy Officer Rieko Shofu said, according to the Japan Times.

Sapporo is also considering expanding its U.S. manufacturing footprint by acquiring or building a brewery on the West Coast or using a contract manufacturer, according to Shofu.

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

The move comes as the brewer seeks to strengthen its flagship Sapporo brand in the U.S., one of its largest overseas markets. Sapporo is the top-selling Asian beer brand in the United States, according to the company.

The production shift reflects a broader push by Sapporo to build its North American business around local manufacturing.

Shofu said the company sees significant room to increase its U.S. market share and is evaluating additional manufacturing capacity to support that growth.

The potential West Coast brewery would give Sapporo another option for producing beer closer to U.S. consumers. The company sahas not yet decided whether to build a facility, acquire an existing brewery or outsource production.

The brewer acquired Stone Brewing in 2022 but sold the beer brand and related wholesale business in 2026. Sapporo also liquidated Anchor Brewing in 2023 after acquiring the historic San Francisco brewery in 2017.

Tariffs Add Pressure to Canadian Production

The decision follows the imposition of 50% U.S. tariffs on beer imported from Canada and was quickly followed by an American ban on some Canadian alcohol products.

For Sapporo, the tariffs create an additional cost for products manufactured in Canada and shipped into the U.S. Moving production stateside allows the company to avoid those Canadian beer import tariffs on the affected products.

Sapporo’s North American changes are part of a larger effort to improve returns after years of acquisitions and investments. The company is accelerating spending on its beer business after deciding to sell its real estate operations.

Through 2030, Sapporo plans to invest between ¥300 billion and ¥400 billion, or roughly $1.9 billion to $2.6 billion, including acquisitions, according to the Japan Times. The company is targeting operating profit of ¥40 billion by the end of that period, up from about ¥24 billion last year.

Roughly 30% of the planned investment is expected to come from overseas opportunities, but Sapporo is also pursuing expansion elsewhere in Asia.

The brewer announced a venture with Carlsberg in July aimed at expanding its business in Southeast Asia and is evaluating investment opportunities in China and South Korea, Shofu said.

The international push comes as Sapporo faces a more difficult long-term environment at home. Japan’s declining population is putting pressure on domestic alcohol consumption, prompting the company to consider changes to its supply chain and greater cooperation with competitors.

For North America, however, Sapporo sees growth potential. Localizing production could help the company limit the impact of trade disputes while giving its flagship brand more manufacturing capacity in a market where it believes it can continue gaining ground.