BrewDog set for 'rapid market growth' in China under new joint venture
The deal will leverage Budweiser China’s extensive sales and distribution network and allow BrewDog to capitalise on 'rapid market growth' in the country, which is now the world’s biggest producer and consumer of beer.
Additionally, BrewDog China also plans to open several new hospitality venues in China by 2026, building on BrewDog’s sole Chinese bar in Shanghai and adding to its existing international network of more than 110 bars.
“We are very excited about further expansion into China,” says James Watt, founder of BrewDog.
“This is a genuinely transformational partnership which is going to bring BrewDog to every corner of the world’s biggest beer market, from a truly bespoke craft brewery which will help ensure the quality of our beers. By making beer closer to our customers, we’ll be giving them even fresher beer and doing it in a way which is better for the planet. Over the past few years we’ve established local production in the US, Germany and Australia.
“Chinese drinkers love craft beer, but the sector is still very new. In Budweiser China, we have found a partner that shares our growth vision for BrewDog in China and is perfectly placed to support our rapid growth in the region.
“We’ve always wanted to significantly grow our share in China – this new joint venture will enable us to do just that as we look to continue to grow our business globally.”
BrewDog entered the Chinese market in 2015, but currently the country accounts for less than 1% of the brewer and bar company's overall sales.
Under the new partnership, BrewDog aims to achieve significant multiples of its existing Chinese volumes, leveraging Budweiser China’s highly sophisticated country-wide distribution network, making China a key market for BrewDog’s growing international business.
“Bud China is leading in craft beer across China and we continue to focus on premium and super premium beer offerings in the country,” says Nicolas Morelli, craft and specialty beer VP of Budweiser China.
“We are excited to add BrewDog to our craft beer portfolio to enrich Chinese beer lovers’ experience with more craft beer choices.”
The parties anticipate that the joint venture will be fully operational by the end of Q1 2023. Further details on this strategic partnership and commercial plan will be shared prior to launch.
The deal marks BrewDog’s second joint venture in Asia following the announcement of its partnership in Japan with another brewer in September 2021. Sales in Japan have doubled since the deal was announced, according to BrewDog, in line with the group's growth plans for the country.
An affiliate of Budweiser China and BrewDog have also partnered to expand BrewDog in South Korea, with options to collaborate in other Asian markets at a later date.
