If BrewDog has its way, its sudsy offerings will be unavoidable around the globe.
The Scottish craft brewer is planning for “world domination” as it looks to expand into France, Australia, and Asia, according to analysts at Bernstein. That involves tripling or even quadrupling sales in France and identifying China as its top target for untapped growth.
- Bernstein / BrewDog website
It’s been a quick rise to the heavyweight ranks for BrewDog, which began operations in 2007. The company’s revenue expanded at a 44% compound annual growth rate through 2015, helping it become Scotland’s largest independent brewery as it expanded to Sweden, Japan, and the US.
BrewDog’s swift success caught the eye of the US private-equity firm TSG Consumer Partners, which purchased 22% of the company for $265 million in April, valuing it at more than $1.2 billion. That investment included $124 million to specifically fund BrewDog’s global expansion.
- Berstein / BrewDog website
Beer enthusiasts in the US will be pleased to know that BrewDog is building a second brewery in Canal Winchester, Ohio, which will add another 400,000 hectoliters of annual capacity.
While BrewDog is enjoying a robust growth story, the larger craft-beer industry has felt some pressure of late. It’s facing stiff competition from both the macrobrewers that have entered the craft market via acquisition as well as from local microbreweries and brewpubs.
Craft-beer industry growth has also been slowing, according to the Brewers Association’s chief economist, Bart Watson.
So while BrewDog hasn’t yet been tripped up by the increasingly crowded and competitive industry, it faces its biggest test yet as it scales itself to an unprecedented level.