Brewdog, the well-known Scotland-based craft beer giant, has reportedly planned to expand in the Chinese market after its partnership with brewery frontrunner Budweiser.
For the unversed, Budweiser China and the Scottish company will collaborate to brew Punk IPA as well as other beer breweries in China.
Brewdog also claims that it intends to expand its bar network in the second-largest economy on earth.
Apparently, this comes after the corporation raised the possibility of pursuing a public market listing in response to the recent issues.
James Watt, Brewdog’s founder, called the Budweiser collaboration transformational in a statement and claimed it would bring the craft brewery to every nook of the largest beer market across the world.
According to the contract, the Putian craft brewery of Budweiser China, located in the southeasterly province of Fujian, would start producing Brewdog’s beers by the end of the coming month.
In the following three years, the company also stated that it intends to open a number of bars across the state.
If market estimates are to be believed, under 1% of British brewery’s total sales presently come from China, the largest beer market in the world.
It is the firm’s second Asian partnership, following a pact with Asahi in Japan in 2021, which enabled Brewdog to double its sales in the nation.
The company claims to have a network of over 110 bars worldwide, but only one in China. The city’s Jing’An district is home to Brewdog Shanghai, which started in 2020.
The Scottish-based company employs over 2,300 people and operates breweries in Berlin, Ohio, Germany, and Brisbane, Australia.
The company apparently had planned to begin selling its shares on the London stock market in 2020, but the Covid pandemic forced bars and pubs to close amid lockdowns, delaying the move.
Watt also stated that Brewdog has no immediate intentions to restart a share sale but has indicated that one could happen before the end of this year.
Brewdog reported a $6.6 million operational loss for the year 2021.
The business received criticism for both its corporate culture and its marketing initiatives.
Source credit: https://www.bbc.com/news/business-64700857