BrewDog partners with Budweiser for its expansion in China

BrewDog is expanding rapidly in China, the world’s largest beer market, and has established a commercial and industrial partnership with Budweiser China (Anheuser-Busch InBev).

Budweiser China will produce their beers at Putian Craft Brewery’s facilities in Fujian Province and will sell them through their sales and distribution networks. Budweiser China’s subsidiaries and BrewDog have also signed an agreement to sell BrewDog in South Korea, with options for future collaboration in other Asian markets.

For its international expansion, BrewDog has chosen to partner commercially with major breweries. Molson Coors, Asahi, Heineken, Estrella Galicia, Warsteiner, and Swinkels are already partners in various territories.

This is the second commercial partnership in Asia following an agreement with Asahi in Japan in 2021.

Why is this important?

  • Breweries or companies in the beverage sector looking to grow or launch new products need to partner with companies already established that have local sales and distribution infrastructure.
  • These new business agreements will become the norm for the industry.
  • Breweries must find new business models in a rapidly changing industry. 2023 will be a year of radical change for many.
  • Contract brewing is an increasingly popular solution for entrepreneurs in the beverage industry seeking a cost-effective option for their businesses. Read more at baronmag.com.
  • Investment for new products is a challenge for SMEs in the beverage industry due to high investment costs caused by inflation. This is a very interesting solution.
  • Le Trèfle Noir Brasserie Artisanale and Trailway Brewing have entered into a production and distribution partnership for their beers in Québec with Microbrasserie Lagabière, based in Saint-Jean-sur-Richelieu.

Interesting story. Here in Ontario, contract brewing was technically "somewhat" illegal in the early 90s until...my brewery started with another brewery's contract manufacturing, as well as a licensee's private label. We spearheaded contract manufacturing for the brewing industry under the LCBO, which consists of about 50 breweries today (my last measure). The legislation was draconian. But, we saw some flaws with the law and pushed through.

Ya, big historical booze stories in Ontario, that's for sure. The LCBO was the single largest purchaser of alcohol on the planet until recently. But your comment about new business models is more achievable, and hopefully the Province of Ontario has learned their lesson about newly discovered and emerging industries.

Cheers

1 Like