Brewdog Announces Expansion into the Chinese Market in Partnership with Budweiser

The renowned craft beer producer Brewdog, based in the United Kingdom, has announced its expansion into the Chinese market following a partnership with Budweiser. In a joint venture with the brewing giant, Punk IPA and other popular beers from the Scottish company will soon be produced in China.

Brewdog has also announced plans to open several bars in the country, and this news comes after the company faced serious controversies in recent years and indicated that it might go public at some point, BBC reported.

In a statement, Brewdog founder James Watt described the partnership with Budweiser as ‘transformational’ and stated that it would bring craft beer to ‘every corner of the world’s largest beer market’.

According to the agreement, Brewdog stated that it expects its beers to start being produced at the Budweiser Putian craft brewery in the southeastern province of Fujian by the end of next month. The company also said it plans to open several bars in the country over the next three years.

China, which is the world’s largest beer market, currently accounts for less than one percent of Brewdog’s total sales, but this could soon change. This is the company’s second partnership in Asia after the agreement with Asahi in Japan in 2021, which Brewdog claims helped it double its sales in the country.

Controversial Past

The company states that it currently has an international network of over 110 bars, but only one in China. Brewdog Shanghai, which opened in 2020, is located in the Jing’An district of the city.

The Scotland-based company employs over 2,300 people and also has breweries in Ohio, USA, Berlin, Germany, and Brisbane, Australia.

The company reportedly planned to begin selling shares on the London Stock Exchange in 2020, but postponed that move due to pubs and bars being closed because of the pandemic. Watt stated that Brewdog does not plan to revive the IPO soon but hinted that it could happen by the end of this year.

According to Brewdog’s financial results for 2021, the company recorded an annual operating loss of £5.5 million ($6.6 million).

Brewdog has faced numerous criticisms regarding its marketing campaigns and questionable corporate culture.

In January of this year, Watt stated that he paid out nearly £500,000 to winners of the company’s misleading promotion of ‘gold’ beer cans. Some winners questioned the value of the cans and complained after discovering they were merely gilded.

Additionally, a letter from former employees in June 2021 stated that former staff ‘suffered from mental illness’ due to working at the brewery. A range of allegations were made, including that Brewdog fostered a culture where staff were afraid to voice their concerns.

Watt then apologized to former staff and said their complaints would ‘help him become a better CEO’.