MONTREAL — Phillips Distilling Company moved production of its Sour Puss liqueur to Montreal in October 2025 after Canadian provinces began boycotting American-made liquor in March 2025. The boycott, initiated in response to U.S. President Donald Trump's tariffs on Canadian goods, caused Phillips to lose 70% of its Canadian business.

Canada is the largest consumer of Sour Puss, a brand that is uniquely popular there. Andy England, CEO of the Minnesota-based, family-owned company, described the sales collapse as "a disaster." Within weeks of provincial liquor boards halting orders, Phillips began exploring relocating production to Canada. In October 2025, the company signed an agreement with Montreal-based alcohol manufacturer Station 22 to begin Canadian production.

"We produce and sell in Canada," England said. "We have, I think, convinced all of the provinces to take back some of our products, and we're on the road to recovery." Sour Puss is "very much a Canadian brand," he added, noting, "If we sold 1,000 cases of Sour Puss in the US, I'd be surprised." Canadian distributors were "very appreciative" that Phillips moved production, he said, and Quebec became the first province to resume selling Sour Puss after the shift.

Ontario was the first province to ban U.S. liquor sales in March 2025, followed by Quebec and British Columbia. As of May 2026, only Alberta and Saskatchewan—both of which have fully privatized liquor retail systems—continue to sell American alcohol. In Canada, most alcohol sales are controlled by provincial government boards.

Meredith Lilly, a professor of international economic policy at Carleton University, described the provincial boycott as a "heat of the moment" response that was not expected to last this long. She noted that Phillips faces "no reputational penalty in the US" for moving production and can shift operations more easily than producers tied to geographic indications like Kentucky bourbon or California wine.