Sapporo plans $2.6bn overseas expansion as Japan alcohol market shrinks
Japanese brewer Sapporo announced Tuesday it will shift some beer production from Canada to the United States, citing a 50% tariff on Canadian beer imports that took effect the same day.
Chief strategy officer Rieko Shofu described the tariffs as “something out of our control” in remarks to Bloomberg, saying the company would “move ahead with local production.”
The company plans to relocate production of its non-alcoholic beer, currently manufactured in Canada for U.S. customers, to the United States by the first half of 2027. The shift will directly affect operations at Sapporo’s Canadian subsidiary, Sleeman Breweries, which has produced beer for the U.S. market.
Sapporo did not immediately respond to a BBC request for comment.
To address capacity, the company is weighing options to expand production on the U.S. West Coast. Those under consideration include building a new brewery, acquiring an existing facility, or partnering with a third-party manufacturer.
The U.S. is one of Sapporo’s most important overseas markets. The company has spent years building its presence there and says its flagship Sapporo brand is the best-selling Asian beer brand in the country.
Beyond the production move, Sapporo plans to invest up to ¥400 billion ($2.6 billion) by 2030 to expand overseas and boost profits. About 30% of that capital is earmarked for foreign markets, as the company invests heavily outside Japan, where a shrinking population has weighed on domestic alcohol sales.
In July, Sapporo announced a partnership with Danish brewer Carlsberg to expand its reach in Southeast Asia.
The 50% tariff on Canadian beer imports took effect Sept. 8, the same day as Sapporo’s announcement. It was part of a broader U.S. tariff push that in July targeted dozens of trading partners, including Canada.