BrewDog seals tie-up with Budweiser to expand across China

Its beers will be brewed locally in China in collaboration with BrewDog’s brewing team and head of quality at Budweiser China’s Putian Craft Brewery in Fujian province.

BrewDog, which is headquartered in Ellon, Aberdeenshire, also plans to open several new bars in China by 2026, adding to its one Chinese venue in Shanghai and existing 110-strong overseas network of sites.

China currently accounts for less than 1 per cent of BrewDog’s overall sales, but the group is hoping the deal will allow it to ramp up sales in Greater China and tap into what it believes is the world’s biggest producer and consumer of beer.

The joint venture is set to be fully operational by the end of March.

BrewDog founder James Watt 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.”

Under the long-term agreement, BrewDog will look to Budweiser’s “highly sophisticated” sales and distribution network to help it expand in the region.

BrewDog will also tie up with an affiliate of Budweiser China to boost its international footprint into South Korea, with options for other Asian markets going forwards.

The Chinese deal marks BrewDog’s second joint venture in Asia, following its partnership in Japan with another brewer in September 2021.

Last year, BrewDog revealed it was handing out shares worth around £120,000 to 750 staff over four years and launching the first ever profit sharing scheme for all bar workers.

In 2022, Mr Watt told the PA news agency: “Everything we’re doing today is about looking forward with a fantastic team.”

Mr Watt said the group wanted to create a “new type of business”.

“It will help with every element of our company – recruitment, retention and team engagement. Ultimately it’s about ownership. We want our team members to act as business owners and incentivise them as if they are business owners.”