Sapporo Breweries is making a big change. It will move the production of its U.S.-bound non-alcoholic beer from Canada to the United States.
The company plans to finish this move by the first half of 2027.
This decision comes after U.S. President Donald Trump added a 50 percent tax, or tariff, on Canadian exports. This tax made it too expensive to ship beer across the border.
Sapporo is the top-selling Asian beer brand in the U.S. right now. To stay on top, the company is looking at options on the American West Coast. It might buy an existing brewery, build a new one, or hire another company to make the beer.
“Tariffs are something out of our control,” said Rieko Shofu, Sapporo’s Chief Strategy Officer. “We’re going to move ahead with local production”.
The U.S. and Canada Trade Fight
The main reason for this move is a trade fight between the U.S. and Canada. This fight has hurt businesses that make things in both countries.
On August 22, 2026, the Trump administration placed a 50 percent tariff on many Canadian goods. This included dairy, cars, and alcohol.
The White House did this because they believed Canada was being unfair to U.S. businesses. They decided to ignore normal trade rules under the Canada-United States-Mexico Agreement (CUSMA).
Canada Fights Back
Canada struck back on September 8, 2026. The Canadian government added taxes between 15 and 50 percent on $27.6 billion worth of American goods.
Canadian Prime Minister Mark Carney promised a “dollar for dollar” response. This happened after trade talks failed because of last-minute demands from the U.S..
| Key Dates in the North American Trade Dispute | Event | Impact on Beverage & Trade Sectors |
| July 20, 2026 | U.S. signs new rules under Section 338. | Sets up 50% taxes on Canadian alcohol, dairy, and autos. |
| August 22, 2026 | U.S. 50% tariffs begin. | Cross-border shipments, like Sapporo’s beer, lose a lot of money. |
| September 8, 2026 | Canada starts taxes on $27.6 billion of U.S. goods. | Taxes of 15% to 50% hit U.S. steel, milk, and other items. |
Because of this trade war, companies that brew beer in Canada for the U.S. market must change their plans quickly. Experts say American shoppers will likely see higher prices in stores.
Money Problems and U.S. Changes
Keeping things the way they were was costing Sapporo too much money.
In 2026, Sapporo estimated the new tariffs would cost them JPY 1.2 billion. This was higher than the JPY 0.8 billion cost in 2025.
This JPY 1.2 billion cost makes up about 5.5 percent of Sapporo’s expected JPY 22 billion core operating profit.
Fixing the U.S. Business
Moving the non-alcoholic beer to the U.S. is part of a bigger plan to fix the company’s American business.
Past choices did not make enough money. Sapporo sold Stone Brewing in 2022. It also shut down Anchor Brewing in San Francisco in 2023 after union talks failed.
Now, Sapporo is stopping all production at its Escondido, California, plant by the end of 2026.
Instead, the company is spending money on its plant in Richmond, Virginia. It is investing $33 million there. Soon, this plant will handle about half of the company’s total U.S. beer making.
Sapporo expects to lose about $80 million during these changes. However, it hopes the U.S. business will start making money again in 2026. The goal is to make over $10 million more each year starting in 2027.
| Sapporo North American Financial & Restructuring Metrics | Value / Target |
| FY2026 Estimated Tariff Drag | JPY 1.2 Billion |
| Richmond, VA Facility Capital Upgrade | $33 Million |
| Expected Restructuring Costs (Impairments) | ~$80 Million |
| Targeted Annual Earnings Improvement (by FY2027) | >$10 Million |
What Happens to Canada?
Even though Sapporo is moving some production, it is not leaving Canada.
Online users and experts have noticed that this move is only for non-alcoholic beer sent to the U.S. The goal is to avoid taxes, not to close Canadian plants.
Sapporo’s Canadian company, Sleeman Breweries, still has factories in Guelph, Vernon, Calgary, and Chambly.
By moving the U.S. beer, these Canadian factories will have more space to make beer just for Canada. This might help save Canadian jobs that could have been lost due to the new taxes.
Problems at Home and Global Plans
Sapporo needs to grow in the U.S. because it is having a hard time in Japan.
Sapporo is the fourth-largest beer maker in Japan. However, Japan has fewer young people now. This means fewer people are drinking alcohol.
Shofu said the company is in a hurry to fix its home market. It might even work with rival companies to save money.
New Tax Rules in Japan
Japan is also changing its alcohol taxes in October 2026.
The tax on regular beer will drop by 9.1 yen. But the tax on cheaper, “third-category” beers will go up by 7.26 yen.
Sapporo is getting ready for this. It is dropping the price of 48 regular beers, like its famous “Kuro Label.” It is also upgrading other brands to be regular beers so more people will buy them.
Growing Around the World
To make up for slow sales in Japan, Sapporo is expanding to other countries. The company recently sold its real estate business to get more cash.
This sale pushed the company’s expected profit for 2026 to JPY 296 billion.
Now, Sapporo will spend between $1.9 billion and $2.6 billion on its beer business by 2030. It wants to raise its operating profit from ¥24 billion to ¥40 billion.
About 30 percent of this money will go to other countries. In July 2026, Sapporo teamed up with Carlsberg to sell more beer in Southeast Asia. It is also looking for new chances in China and South Korea.
These moves are happening while Japan faces economic problems. In July 2026, Japan spent more money than it earned, leaving a gap of JPY 634.5 billion.
With new taxes and global fights, Sapporo’s choice to make beer locally shows a new rule for big companies. To grow safely, they must build local supply chains for each region.
Frequently Asked Questions
Why is Sapporo moving beer production from Canada to the US?
Sapporo is moving its production because the U.S. government put a 50 percent tariff on beer imported from Canada. Moving operations to the U.S. helps the company avoid paying this expensive tax.
Will all Sapporo beer be made in the US now?
No. The company is only moving the production of its non-alcoholic beer that is shipped to and sold in the United States market.
When will Sapporo finish moving its production?
Sapporo plans to complete the move of its non-alcoholic beer production to the U.S. by the first half of 2027.
How much money is Sapporo losing because of the new tariffs?
The company estimates that the new trade tariffs will cost them about JPY 1.2 billion in 2026 alone.
Will this move cause people to lose jobs in Canada?
Not necessarily. Moving the U.S.-bound beer production will free up space in Canadian factories. These factories will now focus entirely on the domestic Canadian market, which could help protect work hours and jobs that might have been lost if cross-border sales dropped due to the tariff costs.
