Title: When Trade Relations Deteriorated, This US Spirits Producer Relocated to Canada

Stephanie Intrevado harbors a dedicated collection. Since consuming her first Sour Puss at age 18—the legal drinking age in her home province of Quebec—she has pursued every variety of the vibrant, fruity liqueur. Ranging from passionfruit and coconut to watermelon, the 35-year-old considers herself fortunate to have secured rare bottles and merchandise. Consequently, she was both startled and anxious upon discovering that Sour Puss, a favorite among Canadian university students, was manufactured in the United States, raising concerns about her ability to find future bottles.

Since the spring of 2025, most Canadian provinces have enforced a boycott on American liquor in response to US President Donald Trump’s tariffs. This retaliation placed Phillips Distilling, the Minnesota-based family enterprise behind Sour Puss, in a precarious position. The company lost 70% of its Canadian revenue, a situation CEO Andy England described as "a disaster." Because Canada is by far its largest market, Sour Puss sales suffered the most severe decline. This crisis compelled Phillips Distilling to undertake an unprecedented strategy: relocating part of its manufacturing operations to Canada.

The strategic pivot proved successful, restoring availability of their products in Canadian retail outlets. "We’re in a different place now," England told the BBC. "We produce and sell in Canada," he explained. "I believe we have convinced all of the provinces to resume carrying some of our products, and we are on the path to recovery."

While US liquor producers have collectively suffered financial losses since the trade dispute intensified, Phillips Distilling remains one of the few to have established production within Canada. A comprehensive trade agreement remains out of reach. The liquor sales ban has emerged as a significant point of contention in ongoing negotiations. Prime Minister Mark Carney has indicated that provinces might lift the ban on American alcohol if tariffs on crucial Canadian industries, such as automotive, metals, and lumber, are reduced or removed.

The prohibition began in March of the previous year, initiated by Ontario. The province’s liquor board is among the world’s largest wholesale alcohol buyers, and its automotive industry has been heavily impacted by Trump’s tariffs. Other major provinces, including Quebec and British Columbia, soon joined the boycott. By May 2026, only two of the ten provinces—Alberta and Saskatchewan—continued to sell American alcohol. This disparity exists because Canadian alcohol sales are primarily regulated by provincial governments through boards that control imports and sales. In contrast, Alberta and Saskatchewan operate fully privatized liquor retail systems.

For Phillips Distilling, the impact of the boycott was immediate, driven by Sour Puss’s immense popularity in Canada. "If we sold 1,000 cases of Sour Puss in the US, I’d be surprised," England noted, characterizing the drink as "very much a Canadian brand" given its long-standing embrace by Canadians. Due to its high demand, the company began considering a production shift to Canada just weeks after provincial liquor boards halted orders.

By October, as neither Trump’s tariffs nor the provincial ban showed signs of abating, Phillips Distilling signed an agreement with Station 22, a Montreal-based alcohol manufacturer, to begin production. England noted that Canadian distributors were "very appreciative" and excited by the move. However, restocking shelves required time. Quebec’s decision to resume sales first helped facilitate discussions with other provinces.

Intrevado celebrated the return of Sour Puss with an Instagram post featuring four bottles of the raspberry flavor. "Guess who's back?" she wrote. "Oh how I've missed you." Both England and Meredith Lilly, a profes

Source: BBC News Generated at: 2026-05-28 23:29:46 UTC