While the steady hum of bottling machines may not sound like the backdrop of geopolitical tensions, the recent announcement that Sour Puss Liqueur will shift its production to Canadian facilities tells a different story. This popular fruit-flavored spirit, known for its vibrant colors and sweet-tart profiles, is making a strategic pivot amid escalating trade uncertainties between Canada and the United States.
“We’ve been watching the trade landscape evolve for several years now,” explains Tanya Richardson, operations director at Mark Anthony Group, which owns the Sour Puss brand. “The decision to relocate production to our Ontario facility represents both risk mitigation and a recommitment to our Canadian roots.”
The move comes as bilateral relations between the longtime trading partners have grown increasingly complex. Since the 2018 renegotiation of NAFTA into the USMCA (or CUSMA in Canada), the spirits industry has navigated a changing regulatory environment. Recent aluminum and steel tariff threats have only heightened concerns across manufacturing sectors that rely on cross-border supply chains.
For Canadian consumers, the production shift likely won’t change the flavor profile they’ve come to expect from the raspberry, peach, and green apple varieties that dominate Sour Puss sales. The company has invested approximately $12.4 million to upgrade its Grimsby, Ontario facility, ensuring formulation consistency while creating an estimated 26 new positions.
“The recipe isn’t changing, just the postal code on the production facility,” Richardson assured customers.
Economic analysts view the move as part of a broader trend. “What we’re seeing across food and beverage manufacturing isn’t just about tariff avoidance,” notes Dominic Barton, former Canadian economic advisor. “It’s about supply chain resilience. Companies learned hard lessons during pandemic disruptions and are now building redundancy into their operations.”
Indeed, Statistics Canada reported that food and beverage manufacturing investments increased 8.3% year-over-year in 2023, with much of that growth concentrated in companies repatriating production capacity previously outsourced to the United States or Mexico.
The liquor industry remains particularly sensitive to trade tensions due to complex provincial regulations and distribution systems. Under Canada’s highly regulated alcohol framework, the Liquor Control Board of Ontario (LCBO) and similar provincial bodies maintain significant influence over pricing and availability.
“For companies like Mark Anthony Group, producing within Canada creates a more predictable cost structure,” explains Sylvain Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University. “When you factor in currency fluctuations, potential tariffs, and transportation costs, domestic production offers meaningful advantages for products primarily sold in the Canadian market.”
The production relocation also aligns with growing consumer interest in local products. A recent Abacus Data survey found that 64% of Canadian consumers report increased preference for domestically produced food and beverage products since 2020, with “supporting the local economy” cited as the primary motivator.
What makes this move particularly notable is that Sour Puss has maintained steady sales despite changing consumer preferences toward craft spirits and lower-sugar alternatives. The brand has retained a loyal following among its core demographic while gradually reformulating to reduce sugar content by approximately 15% over the past three years.
“Nostalgic brands with strong identities have demonstrated remarkable resilience,” observes Monika Sharma, beverage industry analyst at RBC Capital Markets. “Sour Puss has successfully positioned itself both as a standalone sipper and a cocktail ingredient that bartenders rely on.”
The production shift raises questions about whether other Mark Anthony Group products might follow suit. The company’s portfolio includes Mike’s Hard Lemonade and White Claw Hard Seltzer, both of which enjoy substantial market share in both Canada and the United States.
When asked about potential expansions of Canadian production capacity, Richardson remained noncommittal but acknowledged ongoing evaluations. “We continuously assess our manufacturing footprint based on market conditions. The Sour Puss move represents our current strategic direction, but we’re always planning three to five years ahead.”
For Ontario’s Niagara region, already home to a thriving wine industry, the expanded liquor production represents welcome economic diversification. Regional development officials estimate the ripple effects could generate an additional $4.3 million annually for local suppliers and service providers.
“Food and beverage manufacturing offers stable employment opportunities that resist automation more effectively than many other sectors,” explains Jennifer Greco, economic development officer for the Niagara Region. “These positions typically pay 12-18% above median wages for comparable education requirements.”
The move also highlights the ongoing evolution of Canada-U.S. trade relations under the current administrations. While large-scale disruptions have largely been avoided, targeted pressures in sectors like lumber, dairy, and aluminum have created an environment where companies increasingly factor political risk into production decisions.
For consumers picking up a bottle of Sour Puss at their local liquor store, the production change will likely go unnoticed. The familiar cat logo and bright colors remain unchanged. But behind that continuity lies a calculated response to the changing realities of North American trade—a reminder that even in products designed for celebration and enjoyment, business decisions increasingly reflect a world of shifting economic alliances and priorities.
