Brewdog moves closer to Big Beer
The Financial Times has reported that Brewdog have agreed a joint venture with Asahi for distribution of its core range beers in supermarkets in Japan. The FT notes that Brewdog will own 51% of the JV. Punk IPA accounts for 70% of Brewdog sales in Japan. Beers beyond the core range will remain with the distributor Brewdog have used since 2013. Brewdog also aim to open a brewery in Japan in due course
The FT also reports that Brewdog have reached a franchise agreement with Ace-Aloha in India to open 50 Brewdog bars. Given issues that have arisen with franchised Brewdog bars in the US one wonders if there wont be more trouble ahead.
They have also appointed Rothchilds as advisors on an IPO (a public listing of shares)) with the aim (delayed from 2020)to list in London and possibly New York.
The FT notes that Brewdog is not considering a sale wanting to retain its independence. One might wonder after these latest developments exactly how independent it currently is. It goes to the centre of the Brewdog conundrum. Independent but increasingly intertwined with Big Beer. Ethical but refusing to recognise a union with a poor reputation for employee relations.
Update
Brewdog have posted their media statement in their Press Hub.
A key passage is:
BREWDOG PARTNERS WITH ASAHI JAPAN TO CREATE JAPANESE JOINT VENTURE – BrewDog
A partnership with Asahi Japan provides BrewDog with a considerable new platform to accelerate growth throughout a country with a deep legacy of appreciation for craft beer. The joint venture will focus initially on growing distribution and awareness of the BrewDog brand in Japan and in time will be able to access Asahi Japan’s highly developed distribution network, leveraging its market leading position to rapidly grow BrewDog brands, in particular Punk IPA which currently accounts for 70% of BrewDog volumes in Japan, and Hazy Jane, which in its two years since launch has grown to become the second largest craft beer brand in UK supermarkets behind Punk IPA.
Unfortunately building the brand & leveraging the market position will not improve the beer
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