US-based Phillips Distilling is shifting the majority of production of three brands to Canada due to the ongoing trade spat between the two countries.
The privately owned company will manufacture its Sour Puss, Kamora Coffee and Phillips Butter Ripple liqueurs at Station 22 Distillery in Montreal, Quebec. The brands have been produced at its facility in Princeton, Minnesota.
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Phillips Distilling told Just Drinks it will continue to make the brands for US consumers at its Princeton site on an “as-needed basis”.
The UV vodka maker said the ongoing “trade dispute” between the US and Canada had influenced its decision to relocate production.
Earlier this year, several provinces in Canada removed US brands from their shelves in protest of the tariffs being implemented on Canadian products by the US.
Alberta and Saskatchewan provinces resumed the sale of US alcohol in June. Phillips Distilling said its three liqueur brands have been brought back to shelves in Alberta Saskatchewan and British Columbia since June but have not been on shelves in other provinces since March.
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By GlobalDataIn a statement yesterday (14 November), Phillips Distilling said the relocation will help it produce “closer to its core customer base and strengthen its logistical efficiency”.
Canadian consumers account for the majority of the sales of the three brands, according to the company, with nearly 100% of Sour Puss being sold in Canada, while Canadians buy 15 times more Phillips Butter Ripple than US consumers.
Sour Puss liqueur was launched in Canada in 1998, selling more than one million bottles across the country in 2024.
Phillips Distilling said the Princeton facility will continue operate, producing all of its other brands for the US market.
