Craft beer firm BrewDog is expanding its operations in China, after signing a partnership with brewing giant Budweiser.
“The environment is very challenging in the UK,” said BrewDog’s controversial chief executive James Watt, adding the deal will see Budweiser produce Punk IPA, Hazy Jane and Elvis Juice at its newly opened plant in the Fujian province.
A further nine Brewdog bars will also be opened in China, it said, adding to one already trading in Shanghai.
“We don’t want to be owned by big beer, but we do want to become a global beer business,” Watt commented, “most of our focus in putting our capital to work is international”.
Privately owned Brewdog already has a small production line in China, which brewed 6.5mln hectolitres in 2020, out of a total 341mln hectolitres made collectively across the country.
China accounts for just 1% of Brewdog’s global sales currently, with the new partnership aiming to up its stake in the country's market, which has grown over the past decade to become the world’s largest producer and consumer of beer.
Brewdog, which was founded in Scotland in 2007, partnered with Japanese brewer Asahi in 2021 as part of its bid to expand into the Asian market, with the new deal also set to boost operations in South Korea.
The brewer has never been far from the headlines during its short commercial life, with most recently the group having adverts banned for misleading five-a-day claims.
Watt also hired private detectives to investigate people he alleged were ‘bad-mouthing’ the company, while the BBC even ran a documentary on working conditions at the brewer.
BrewDog had to permanently close six of its UK bars this year due to rising costs after which Watt described the government as “clueless” for failing to support the hospitality sector.