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BrewDog has established the first international joint venture with Japan’s Asahi as it seeks to increase sales ahead of the planned London IPO of the UK’s largest craft beer brewer.
The Scottish group aims to increase sales in Japan six-fold in five years after signing a contract with Japan’s largest brewery.
The partnership will sell Brewdog beers such as Punk IPA, Hazy Jane and Elvis Juice, and leverage Asahi’s distribution capabilities to boost supermarket sales. Co-founder and CEO James Watt said he could later set up a brewery in Japan. Brewdog already owns a bar in Tokyo.
The transaction takes place when BrewDog meets with a banker about the possibility of listing in London and appoints Rothschild as an independent advisor to the IPO process.
“We see [the IPO] As an important part of our future, “Wat said. The joint venture is “a new type of initiative for us … If it succeeds in Japan, it could lead to similar types of contracts with other partners in other regions.”
Prior to the pandemic, BrewDog was considering listing in 2020. Watt said he hasn’t promised to revise the IPO timeline, but is approaching the appointment of a lawyer.
We are aiming to be listed in London, but we are also considering New York. The sale, not the IPO, isn’t on the card, he added. BrewDog cites independence in an industry dominated by a large beverage multinational company as one of its “beliefs.”
According to Euromonitor, craft beer brewers, who own 51% of the venture, are looking to gain a larger share of the $ 28 billion worth of Japanese beer market in 2020. This venture will be led by Daisaku Okuda, Chief Operating Officer of Asahi Japan, a veteran of about 20 years.
As BrewDog expands internationally, it will enter into a franchise agreement with the Ace-Aloha Group in India to open up to 50 BrewDog venues.
BrewDog, which was valued at around £ 2 billion in the latest crowdfunding round, posted net sales of £ 182m in 2020, up 4.2% year-on-year, with a pre-tax loss of £ 13.1m. I did. In addition to brewing, we have opened 99 bars and 4 hotels around the world.
Brewdog beer sales are expected to increase by 25% this year, Watt said. “Given all the challenges of last year, this year will be a very satisfying result,” he added.
Founded in 2007, BrewDog is the hottest group born of the UK craft beer boom, raising over £ 94m through crowdfunding. It attracted attention in the early days through promotional stunts such as dropping a stuffed “fat cat” from a helicopter over London.
The company faced as well as the pandemic cataclysm Criticism This year, after accusing a group of former staff members of misogyny’s work culture, a “toxic” attitude towards junior employees, and a pursuit of “growth at all costs.”
Watt said the criticism was “what we take very seriously.” BrewDog has appointed cultural advisor Wiser to carry out independent reviews, raised salaries and set up an ethics hotline as part of a series of changes.
BrewDog has also appointed Blythe Jack, managing director of private equity firm TSG Consumer Partners, which purchased a 22% stake in 2017, as the first chair after the claim. More governance changes will be revealed prior to listing, Watt said.
BrewDog agrees tie-up with Japan’s Asahi to boost sales Source link BrewDog agrees tie-up with Japan’s Asahi to boost sales