British craft beer firm BrewDog in JV deal for China expansion

LONDON (Reuters) - British craft beer firm BrewDog said it will start to brew its Punk IPA, Hazy Jane and Elvis Juice products in China through a joint venture with Budweiser China which it hopes will help to lift sales in the country.

BrewDog said in a statement on Monday its beers would be produced at Budweiser China's Putian Craft Brewery in Fujian province, and its partner would use its sales and distribution network to sell the beers across the country.

"Chinese drinkers love craft beer, but the sector is still very new," BrewDog founder and chief executive James Watt said. "In Budweiser China, we have found a partner that shares our growth vision for BrewDog in China."

China currently accounts for less than 1% of BrewDog's group sales, the company said, adding that the new joint venture should help to grow this by "significant multiples".

It will also open several new bars in China by 2026, it said.

Scotland-based BrewDog, owned by its founders, private equity firm TSG Consumer Partners and crowdfunding investors, already has local production in the United States, Germany and Australia.

It had planned to list in London in 2020 but put those plans on ice due to the coronavirus pandemic.

(Reporting by Sarah Young, Editing by Kylie MacLellan)