Tariff Pushes Sapporo’s US-Bound Production Out of Canada

Sapporo Holdings is reconsidering its North American production map just months after deciding to consolidate US brewing in Virginia, with President Donald Trump’s 50% tariff on covered Canadian imports now pushing another piece of production south of the border.

The Japanese brewer will move production of non-alcoholic beer currently made in Canada for US customers to the United States during the first half of 2027, Chief Strategy Officer Rieko Shofu told Bloomberg. The company is also considering acquiring or building a brewery on the US West Coast or contracting production to another manufacturer.

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

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Sapporo owns Sleeman Breweries, Canada’s third-largest brewer, and maintains four Canadian production facilities that have been part of its North American supply network.

What makes the decision notable is its timing. In April, Sapporo announced that it would make Richmond, Virginia, its core US production site and cease brewing at its Escondido, California, plant by year-end, saying consolidation would improve efficiency and lower fixed manufacturing costs. The restructuring came with roughly $80 million of expected impairment losses and related expenses.

The possibility of adding West Coast capacity months later shows how quickly tariff economics have altered those calculations.

Sapporo had already budgeted a ¥1.2 billion negative impact from US tariffs for fiscal 2026, up from ¥800 million in fiscal 2025. Its US strategy nevertheless calls for continued growth of the Sapporo brand, including new non-alcoholic products.

The production decision emerged as Canada’s retaliation escalated the dispute Tuesday. Ottawa imposed tariffs of 15%, 25%, and 50% on $27.6 billion of US imports effective September 8, matching US measures introduced in August.