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BrewDog, the famous Scottish craft brewery, is expanding its presence into China, the world's largest beer market. After joining forces with Budweiser, the company has set its sights on the Asian mainland as it seeks to build a damaged reputation in Europe.
This move represents a significant opportunity for the company to tap into a sector that has a rapidly growing demand for premium craft beers.
But what can the company bring to the market and how much of an impact will its beers make?
This article aims to find out.
You maybe wouldn’t think it, but China is the largest and fastest-growing beer market in the world. Its population drinks 1.6 times more beer than the United States, which may surprise those of us who only think of authoritarian rule when it comes to the world’s third-largest country.
While it’s true that it’s very difficult (or impossible) to access Facebook, play an online casino game, or watch foreign TV channels in China, it is extremely likely that you’ll find a wide range of beers to choose from across the country.
The alcoholic beverage has become increasingly popular in China in recent years. One of the main reasons is its accessibility and affordability. Many beer brands are widely available in convenience stores, supermarkets and restaurants at a reasonable price. In addition, beer has become a staple beverage for social gatherings and celebrations in China. People typically consume it during meals, particularly during hot summer months, to complement spicy and savory food.
The rise of Western-style bars and nightlife in major cities has also contributed to the growing popularity of beer in China and has led to Chinese breweries producing a range of beer varieties that cater to local tastes, such as lighter, less bitter beers that are favored by many Chinese consumers.
This is where BrewDog comes in. Its partnership with Budweiser China will involve brewing BrewDog's popular beers, including Punk IPA, Hazy Jane and Elvis Juice, at its Putian craft brewery near the southeast coast of China by the end of March. The company will also open nine bars in China, adding to the one already in Shanghai.
The move is part of BrewDog's international expansion strategy, following a difficult period in Europe, and will allow it to leverage Budweiser China's sales and distribution network to capture a portion of the fast-growing market for craft beer.
At the center of this strategy will be three popular BrewDog beers, which could help make the brand a market leader.