TOKYO — Sapporo Breweries Ltd. is relocating non-alcoholic beer production from Canada to the United States by the first half of 2027, citing 50 percent tariffs imposed by the Trump administration on Canadian beer exports.
The company is evaluating options for U.S. expansion, including acquiring or building a new brewery on the West Coast or engaging contract manufacturers. Rieko Shofu, Sapporo's Chief Strategy Officer, said tariffs are "something out of our control" and the company will "move ahead with local production."
"The U.S. is a huge market where Sapporo has a lot of momentum right now to expand its market share," Shofu said.
The production shift is part of a larger strategic overhaul for the company following a period of acquisitions that failed to deliver expected returns. Sapporo sold Stone Brewing in 2022 and liquidated Anchor Brewing in 2023. The brewer divested its real estate business last year to accelerate investments in core beer operations.
Sapporo plans to invest between ¥300 billion and ¥400 billion, equivalent to $1.9 billion to $2.6 billion, through 2030. These investments will include potential acquisitions, with a goal to increase operating profit to ¥40 billion from approximately ¥24 billion last year.
The company targets roughly 30 percent of this profit growth from overseas operations. Sapporo's brand is the top-selling Asian beer in the U.S. market.
Beyond North America, Sapporo announced a joint venture with Carlsberg A/S in July to expand in Southeast Asia. Shofu also indicated the company is seeking investment opportunities in China and South Korea.
In Japan, Sapporo faces mounting pressure from the nation's shrinking population and declining alcohol consumption. As the No. 4 beermaker, the company must contend with a long-term domestic market contraction. Shofu said there is "considerable urgency" regarding the domestic market, and Sapporo is not ruling out increased supply-chain cooperation with rivals to address these conditions.
