UK craft beer giant Brewdog expands into China

Scottish craft beer maker Brewdog is partnering with Budweiser China to expand in the world’s largest beer market. The joint venture will see Brewdog’s Punk IPA and other beers brewed in China at Budweiser’s Putian craft brewery, with plans to open more bars in the country. 

Although the company has faced controversies in recent years, including allegations of fostering a culture of fear among staff, founder James Watt said the Budweiser deal was “transformational”. 

China accounts for less than 1% of Brewdog’s overall sales, but the company sees the partnership as a way to bring its brand to “every corner of the world’s biggest beer market”.

Expanding into the Asian market 

After a successful partnership with Asahi in Japan last year, this marks Brewdog’s second foray into the Asian market. The beer maker currently operates over 110 bars globally, with only one in China called Brewdog Shanghai that opened in 2020, located in the Jing’An district of the city. 

With more than 2,300 employees, Brewdog has breweries in the US, Germany, and Australia, in addition to its Scotland headquarters.

Brewdog had planned to begin selling shares on the London stock market in 2020, but the move was postponed due to the COVID-19 pandemic, which led to the closure of many pubs and bars.

Although Brewdog founder James Watt has stated that the company has no immediate plans to pursue a share sale, he has suggested that one may take place by the end of this year.

In 2021, Brewdog reported an annual operating loss of £5.5m ($6.6m).

Brewdog faced plenty of criticism

Brewdog has faced criticism for both its marketing campaigns and workplace culture. In January 2022, the company’s founder, James Watt, announced that Brewdog had paid out nearly £500,000 to winners of the “solid gold” beer can promotion, after some winners questioned the value of the gold-plated cans. 

Additionally, in June 2021, a group of former workers published an open letter alleging that they had “suffered mental illness” due to their time at the company. The letter also claimed that Brewdog fostered a culture of fear that prevented staff from raising concerns.

In response, Mr Watt apologised to former staff and pledged to use their feedback to become a better chief executive.

What is craft beer?

Craft beer is a type of beer that is brewed using traditional methods and often in small batches by independent brewers, rather than large commercial breweries. Craft beer often incorporates unconventional ingredients and brewing techniques, resulting in unique and distinctive flavours.

Craft beer is typically marketed as a premium product and has gained popularity in recent years as an alternative to mainstream beers. The definition of craft beer can vary depending on the region and industry standards, but it generally refers to beer produced by a small, independent brewery that produces less than 6 million barrels of beer per year.