When trade soured, this American liquor maker moved to Canada

A U.S. distiller has moved production of a popular liqueur to Canada after losing 70% of its Canadian business to a provincial trade boycott that began in Spring 2025 [1]. Phillips Distilling, the Minnesota-based maker of Sour Puss, signed an agreement with Montreal manufacturer Station 22 to start Canadian production after provincial liquor boards halted orders [1]. The boycott, a retaliation for U.S. tariffs, forced the company to adapt. "We're in a different place now," CEO Andy England said. "We produce and sell in Canada [1]." Quebec was the first province to agree to sell the product again, facilitating talks with others [1]. In the U.S., Sour Puss sales are minimal, with England stating he would be surprised to sell 1,000 cases there, calling it "very much a Canadian brand" [1]. The alcoholic beverage market in Canada is regulated by provincial boards, which control the import and sale of most spirits [1]. Whisky, a strictly regulated spirit worldwide, is typically aged in wooden casks [4], illustrating the complex production standards companies like Phillips must navigate. The company's shift was easier than for producers of geographically tied products like Kentucky bourbon, a best-selling brand of bourbon whiskey produced in Kentucky [1][3]. Professor Meredith Lilly noted the boycott's longevity was likely unanticipated: "I don't think it was envisioned that (the boycott) would be in place as long as it has been [1]." While Canada has used liquor tariffs as a retaliatory tool before, the current dispute has endured, leaving the trade deal elusive [1].