The maker of Sour Puss liqueur is shifting production from Minnesota to Quebec in what one trade expert calls a small but meaningful win for Canada in its ongoing trade dispute with the United States.
Phillips Distilling Company, based in Minnesota, has signed a five-year deal to produce the colourful sweet-and-sour beverage in Montreal after several provinces stopped stocking certain American-made alcohol products in response to U.S. trade actions.
Sour Puss, long a fixture in Canadian bars since the late 1990s, saw its Canadian sales abruptly cut off this spring when provincial liquor boards halted orders. Andy England, the company’s CEO, said the move put nearly all of the brand’s business at risk.
“The vast, vast majority, about 98 per cent, is sold in Canada,” England told Global News in an interview Friday. “In many ways, we think of it as being a Canadian brand. And all the more reason we should produce it in Canada now.”
England called the period following the provincial pullbacks “not good,” noting Phillips sold roughly $23 million worth of Sour Puss in Canada last year, compared to negligible sales in the United States.
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He said the company concluded it had to move production north of the border to survive.
“The situation has clearly upset Canadians, and the provinces clearly want to buy liquor that’s made in Canada,” England said. “Message received and understood. We’ve moved to Canada and are proud of it.”
Julian Karaguesian, a trade expert at McGill University, said the shift is a modest but symbolically important victory for Montreal and the country.
With Ontario recently criticizing Crown Royal for closing a facility in the province and longstanding concerns about Canadian manufacturing jobs flowing south, he said the move offers a rare bright spot.
England said Phillips is now waiting for provincial liquor boards to resume orders. The LCBO says it is in “active discussions” with the supplier, while Quebec’s SAQ did not respond to a request for comment.
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