MONTREAL — The head of the Sour Puss liqueur brand says he had no choice but to move part of the production line north of the border to Montreal amid the Canada-U.S. trade war.

Andy England, chief executive of Phillips Distilling Co., says it lost virtually all of its business in Canada after U.S. President Donald Trump set off a tariff tit-for-tat that prompted provincial alcohol distributors to clear their shelves of American booze.

“In March, when the trade war began, we were suddenly removed from store shelves in most Canadian provinces,” England said in an interview. “We literally lost our business in Canada.”

Nearly 98 per cent of the one million Sour Puss bottles sold by the company last year were in Canada, amounting to Canadian sales of $23 million, the CEO said.

The Minnesota-based distiller kicked off production of Sour Puss in Montreal for the Canadian market on Wednesday.

It says the raspberry-flavoured liqueur will be made at the city’s Station 22 distillery under a multi-year agreement, with bottles slated to hit store shelves next month. Two provinces have already placed orders, England said.

The move represents a rare win for Canadian manufacturing amid a tariff spat that has seen automakers and others announce plans to move some production south of the border.

It also means a pullout by Phillips would not happen any time soon, given the prolonged deal with Station 22 as well as ongoing trade volatility.

“I have no idea if there will be a trade agreement, if it will include tariffs, and if it will only last six months,” said England. “One of the most important things for us is stability.”

Before trade relations soured, about 13 per cent of the production output across brands at the Phillips Distilling plant in St. Paul, Minn., flowed to the Canadian market, he said.

The move to Montreal lowers transportation costs and makes it easier to adapt to Canadian consumer preferences. England gave the example of ready-to-drink alcoholic beverages — canned cocktails or hard seltzers, for example — a segment that is gaining popularity in Quebec.

The company plans to roll out a ready-to-drink product under the Sour Puss brand early next year.

“We probably wouldn’t have been able to launch such a product without Station 22, because we don’t have a can line at our Minnesota plant,” England said.

This report by The Canadian Press was first published Nov. 12, 2025.

Stéphane Rolland, The Canadian Press