Sapporo beer moving production to U.S. from Canada after tariffs
- Sapporo Breweries is shifting some production from Canada to the US due to 50% tariffs on Canadian beer exports and is considering expanding manufacturing capacity on the US West Coast to boost its North American presence.
- The company is restructuring after underperforming acquisitions, having sold Stone Brewing in 2022 and liquidated Anchor Brewing in 2023, with local production seen as a way to bypass uncontrollable tariffs.
- Sapporo plans to invest ¥300-400 billion (US$1.9-$2.6 billion) by 2030 to grow operating profit and expand overseas, including ventures in Southeast Asia, China, and South Korea, alongside a recent collaboration with Carlsberg.
- Facing a shrinking domestic market in Japan due to declining population, Sapporo is exploring strategic options, including potential supply-chain cooperation with competitors, to address long-term challenges at home.
Sapporo Breweries Ltd. is shifting some production to the US from Canada due to 50% tariffs imposed on beer exports from the country, seeking to reinvigorate its North American operations.
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.
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.
“Tariffs are something out of our control,” Shofu said. “We’re going to move ahead with local production.”
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.
“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 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-$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% of that is targeted to come from overseas.
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.
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.