BrewDog has made a partnership with Budweiser China as it aims for a major expansion in the country.
The joint venture will leverage the global brand's sales and distribution network in the world’s second biggest economy, with the Punk IPA, Hazy Jane and Elvis Juice beers being sold there from March.
The long-term agreement will focus on expanding the BrewDog brand across Greater China, which is now the world’s biggest producer and consumer of beer. Additionally, an affiliate of Budweiser China and BrewDog have partnered to expand the Scottish beer in South Korea, with options to collaborate in other Asian markets at a later date.
The popularity of craft beer in China has surged over the past decade, with production rising 10-fold to 6.5 million hectolitres by 2020. BrewDog’s beers will be locally produced in collaboration with BrewDog’s global brew master and head of quality at Budweiser China’s Putian Craft Brewery in Fujian province.
Local production also allows BrewDog to reduce significantly the CO2 output and logistics costs associated with importing beer from Europe.
China currently accounts for less than 1% of BrewDog’s overall sales. Under the new partnership, the Ellon-based business aims to achieve significant multiples of this, via Budweiser China’s distribution network.
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.
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.
James Watt, co-founder and chief executive of BrewDog, said: “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.
“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.”
Nicolas Morelli, craft and specialty beer vice president of Budweiser China, added: “Bud China is leading in craft beer across China and we continue to focus on premium and super premium beer offerings in the country.
“We are excited to add BrewDog to our craft beer portfolio to enrich Chinese beer lovers’ experience with more craft beer choices.”
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