BrewDog Teams with Budweiser China for Expansion
Strategic Research Institute
Published on :
3 Mar, 2023, 3:30 am
BrewDog is set for a major expansion into China following a joint venture partnership with Budweiser China’s subsidiary AB InBev. The ‘BrewDog China’ joint venture, which is due to leverage Budweiser China’s sales and distribution network, will take BrewDog brands such as Punk IPA, Hazy Jane and Elvis Juice across the country from March 2023 and will involve the production of the beers beginning in Q1 this year in Budweiser China’s brewery. The parties anticipate that the JV will be fully operational by the end of Q1 of 2023.
The long-term agreement will focus on expanding the BrewDog brand across Greater China and allows the Scottish brewer to capitalise on rapid market growth in the country.
China currently accounts for less than 1% of BrewDog’s overall sales, but under the new partnership, BrewDog aims to achieve significant multiples of its existing Chinese volumes, and leverage Budweiser China’s distribution network so that BrewDog can grow an international business. BrewDog has also confirmed it plans to open several new hospitality venues in China by 2026, building on its sole Chinese bar in Shanghai and adding to its existing international network of more than 110 bars.
The deal marks BrewDog’s second joint venture in Asia following the announcement of its partnership in Japan with another brewer in September 2021.