BrewDog has formed an international joint venture with Japan’s Asahi as the Scottish craft brewer prepares to go public, the Financial Times reported earlier this week.
As part of the tie-up, BrewDog will own 51% of the JV and gain access to Asahi’s distribution network in Japan for its offerings in an effort to increase sales sixfold in the country over the next five years, according to the Times.
BrewDog co-founder James Watt told the outlet that if BrewDog’s JV in Japan succeeds, the company could strike similar partnerships in other parts of the world.
As BrewDog looks to grow its business in Japan, the company is in the process of exploring an initial public offering (IPO), and has appointed Rothschild as its advisor. Although a listing on the New York Stock Exchange hasn’t been ruled out, the Times said the IPO appears more likely for London. Watt added that a sale of the company, which was valued at £2 billion ($2.7 billion USD) in a recent crowdfunding raise, is not on the table. BrewDog sold a 22% stake in the company to San Francisco-based private equity firm TSG Consumer Partners in 2017. The company has also raised capital through various “Equity for Punks” crowd funding offerings.
Beyond Japan, BrewDog has reached a franchise agreement with Ace-Aloha Group to open as many as 50 BrewDog branded locations in India, according to the Times.
BrewDog has stumbled through 2021 as its internal culture and Watt’s leadership style came under fire from former employees. In the U.S., the company was also criticized for the firing of four LGBTQ employees from its Indianapolis taproom and issued an apology.
In an effort to shore up its culture, the company is undergoing an independent review by an advisory firm. In the meantime, BrewDog has increased employee salaries, set up a reporting hotline for misconduct, and appointed TSG managing director Blythe Jack as its chair.
In the U.S, BrewDog’s Columbus, Ohio-headquartered operation was the 41st largest craft brewery by volume in 2020 after increasing production 44%, to 62,542 barrels, according to data from the Brewers Association.