Japanese beverage company Sapporo has announced plans to shift a portion of its beer production from Canada to the United States in response to a newly implemented 50% tariff on Canadian beer imports. The trade measure, which took effect on Tuesday, has significantly increased the financial burden for companies transporting products across the border.
Rieko Shofu, the company's chief strategy officer, characterized the tariffs as an external factor beyond the firm's control, noting that the brewer intends to prioritize local production to maintain its market position. Sapporo specifically plans to transition the manufacturing of its non-alcoholic beer—currently produced in Canada for the U.S. market—to domestic U.S. facilities by the first half of 2027.
To accommodate this shift, the company is evaluating options to expand its U.S. manufacturing capacity, including the potential acquisition of a brewery, new construction, or entering into partnerships with third-party manufacturers. The move will impact Sleeman Breweries, Sapporo’s Canadian subsidiary.
This strategic pivot is part of a broader effort by the Japanese brewer to bolster its international presence as it faces declining alcohol sales in its home market due to a shrinking population. Sapporo has committed to investing up to ¥400bn ($2.6bn) by 2030, with approximately 30% of those funds dedicated to overseas expansion. Beyond North America, the company is also pursuing growth in Southeast Asia through a recent partnership with the Danish brewer Carlsberg.
Source: BBC News
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