BrewDog ties up with Asahi Breweries to create Japanese JV targeting Asian craft beer appetite
06 Sep 2021 --- Independent craft brewer BrewDog has launched a joint venture (JV) in Japan with Asahi Breweries, which will see BrewDog headliners such as Punk IPA, Hazy Jane and Elvis Juice rolled out across Japan later this month. The JV will be known as “BrewDog Japan” and is the first of its type for BrewDog, which will retain a controlling interest.
It will operate as a standalone entity with its own sales, marketing and back-office teams. It will focus exclusively on the distribution and marketing of key BrewDog brands in Japan.
Asahi Breweries, Ltd. is a subsidiary that operates an alcohol business in Japan within Asahi Group Holdings, Ltd, which globally runs alcoholic and soft drinks. Founded in 1889, Asahi Breweries, Ltd. is one of Japan’s leading manufacturers of alcoholic beverages, producing and selling beer, non-alcoholic beer, whiskey and spirits in Japan nationwide.
Beer expansion
BrewDog beers are already available in limited locations across Japan. However, the joint venture will invest to grow brand awareness country-wide and significantly increase the number of outlets where BrewDog is on the shelves.
Founded in 1889 in Osaka as the Osaka Breweries, Ltd., Asahi Japan is the leading brewer in Japan.
A partnership with Asahi Japan provides BrewDog with many new platforms to accelerate growth throughout a country with a deep legacy of appreciation for craft beer.
The JV will focus initially on growing distribution and awareness of the BrewDog brand in the country.
Over time, the JV will access Asahi Japan’s highly developed distribution network, leveraging its position to grow BrewDog brands rapidly. In particular, the company will focus on Punk IPA, which currently accounts for 70 percent 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.
Other small-batch craft beers within the BrewDog stable, plus cider and spirits, will continue to be imported by Whisk-E, BrewDog’s local partner since 2013.
BrewDog says it’s explored several strategic options to accelerate the expansion of its business through the fast-growing Asian markets – and creating a JV provides a rapid boost to its distribution capability while retaining its independence.
The JV will be run by newly appointed chief operating officer, Daisaku Okuda, who brings with him over 30 years of experience in the drinks industry, including nearly 20 years at Asahi Japan, most recently as general manager, spirits & liqueurs.
A sales and marketing team based in central Tokyo is working closely with BrewDog’s HQ in Ellon, Scotland.
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Brewdog range of beers. (Credit: Brewdog)Overcoming COVID-19 challenges
The JV with Asahi Japan comes when BrewDog has considerably expanded its international footprint, growing market share in new markets despite the challenge presented by the COVID-19 pandemic.
International sales of BrewDog have grown significantly in recent years.
With brewing operations in Ellon, Aberdeenshire; Columbus, Ohio; Berlin, Germany and Brisbane, Australia, international sales more than doubled between 2017 and 2020. Despite the pandemic, sales are expected to show further significant growth over 2021, notes the company.
In addition to Japan, BrewDog has a growing presence across Asia, including China, South Korea, Thailand, Hong Kong, Macau, Singapore, India, Taiwan, Malaysia and Indonesia.
Growing presence in Asia
BrewDog bars can also be found in Tokyo, Shanghai, Seoul, and Mumbai, soon opening in New Delhi.
“We’re excited to be growing our presence in Japan and, in Asahi Japan, to be doing so in partnership with one of the most prestigious names in the drinks industry,” says James Watt, CEO of BrewDog.
“BrewDog’s beers are now enjoyed in over 60 countries around the world, and it’s a great testament to the quality of our beers, not to mention the excellent taste of Japanese beer drinkers, that we have this opportunity to grow further in such a significant market.”
“With its reputation for high-quality craft beers, BrewDog already has an established fanbase in Japan. We’re pleased to launch the business operation in Japan to help bring great beer to consumers across the whole country,” adds Daisaku Okuda, COO of BrewDog Company Japan.
Edited by Gaynor Selby
