Minnesota Liquor Producer Shifts Sour Puss Production to Canada Following Trade Dispute
Minnesota-based Phillips Distilling, the company behind the popular Sour Puss liqueur, has been compelled to relocate a substantial portion of its production to Canada. This strategic shift follows a severe reduction in Canadian sales, with the firm reportedly losing 70% of its business in the country after most provinces implemented a boycott of US-made alcoholic beverages.
The boycott, initiated in Spring 2025 by Canadian provinces as retaliation against US President Donald Trump's tariffs on key Canadian sectors such as automotives, metals, and lumber, significantly impacted Phillips Distilling. CEO Andy England described the sales decline as "a disaster," with Sour Puss being particularly affected given Canada is its largest market.
The company's decision to commence production in Montreal, via an agreement with Station 22, marks a rare move among US liquor producers grappling with the trade dispute. While American commerce secretary Howard Lutnick has labelled the provincial liquor ban "outrageous" and "insulting," a resolution to the broader trade disagreement remains elusive. Prime Minister Mark Carney has indicated provinces might reconsider the boycott if US tariffs are reduced or lifted, yet the power to reinstate American alcohol sales ultimately rests with provincial governments.
Professor Meredith Lilly, an international economic policy expert at Carleton University, noted that companies like Phillips Distilling, whose products are not geographically tied, face fewer reputational risks in the US by moving production. The enduring nature of the current tariff dispute contrasts with a previous resolution during Trump's first term, which saw tariffs on Kentucky bourbon lifted after less than a year. For Phillips Distilling, the experience has prompted a fundamental reconsideration of its long-term business model.
