Have you ever read a beer manifesto? Well, BrewDog, the Scottish craft brewery, has one. A 21-page ‘Craft Beer Revolution Manifesto’.
An excerpt from the manifesto says, “We are not afraid. Not of revolution. Not of challenging the status quo. We will do whatever it takes, beer in hand, to obliterate mass-produced, tasteless, monolithic beer.”
Their protest is against commodity beer. With a focus on craft beer and experimental marketing, they aim to bring this revolution to India and build a community around it.
James Watt, BrewDog CEO & Co-Founder, talks to Storyboard18 about craft beer, the brand’s plans for India, consumption patterns, takeaways from the recent gold can row, and more.
Edited excerpts:
Tell us about your plans for India? How important a market is India for the brand?
We’re just at the beginning of our journey in India. At the moment, we have two locations open in Mumbai and one in Delhi. Our next locations are going to be Chandigarh and Amritsar.
The potential for beer in India is massive, and we see it as one of the countries with the most growth potential. Our goal is to open a hundred BrewDog locations in India, and we’re also putting the wheels in motion to start brewing our beers there as well. I visited India a few weeks ago to work on that plan. We don’t just want to sell our beers in India, we want to take our whole business model there, including brewing and distributing beer in cans and bottles for wholesale and retail sales. We love the Indian market, the strong cultural link between the UK and India, and we see it as our biggest focus in terms of international markets for the next five to ten years.
BrewDog is on a mission to revolutionise beer drinking. How does that fit into your business plan?
We started our business in the UK 15 years ago. We rebelled against the bland, mass-produced industrial beers that dominated the market, with over 90% being controlled by large international corporations. These corporations produce commodity beer using cheap ingredients, substitutes, preservatives, and pasteurisation, which negatively affects the flavour. We were inspired by the growth of craft beer in America, where 20 percent of the beer market is now made up of craft beer, compared to just 1-2 percent in other countries. We believe this trend will also occur in Europe and the UK. Our goal is to promote good beer and raise the status of beer. At all of our locations, we not only serve our own beer but also showcase local favourites. Our passion is to share our love for fantastic beer and increase people’s understanding and appreciation for it.
Do you plan to bring a similar revolution to India? Will we be seeing the experimental marketing you’ve been doing in other markets in India too? What are your plans?
Our marketing is centred on community engagement and building a strong community is a key aspect of our business model. When we enter a new market, such as India, we focus on not just opening locations but also on bringing our philosophy and approach to building a community. Social media is one of our main tools for community building, creating awareness, and promoting sustainability. As the world’s only carbon-negative beer business, sustainability is a key focus for us. We are known for taking a stand on issues we believe in, such as through our protest beer ‘Hello, my name is Vladimir’ and our taxidermy cats airdropped over the Bank of England. Our marketing is low-budget, high-impact, and grassroots-focused, rather than relying on conventional advertising. Our focus in India will remain the same: community, sustainability, and great beer.
Tell us about the launches in India.
We’re thrilled about introducing Punk IPA and Hazy Jane, our flagship beers, in India, but with a twist — they will be made locally. During my recent trip to India, I collaborated with the team to perfect the recipe, and now, we’re confident that the team, equipment, and setup in India can produce these two best-selling beers to the same high standards.
Making the beers locally not only reduces the carbon footprint by eliminating the need to transport the beers from Scotland, but also ensures that they are fresher. Hoppy beers are best enjoyed within the first 8 weeks, and making Punk IPA and Hazy Jane in India means that customers will be able to experience their optimal taste and aroma.
Having these beers brewed in India aligns with our plans for the market and our focus on sustainability. So, by brewing Punk IPA and Hazy Jane in India, we can make a positive impact on both the planet and the taste buds of beer lovers in the country.
Help us understand the changes in consumer behaviour post the pandemic phase of Covid.
Ecommerce has become a significant part of our business, especially after the pandemic. Before COVID, ecommerce was a small fraction of our business, but now it has grown, and more customers are buying beer from our website, which allows us to control the customer experience. In our hospitality locations, customer behaviour has changed since COVID. We used to earn 20 percent of our revenue from food, but now it’s 40 percent. Customers are also dining earlier in the day and spending more time in one location, leading to an increase in average check size from £16-17 to £50. These changes in customer behaviour seem to be here to stay, as opposed to a temporary change due to the pandemic.
You are about to go public; how do you think that will impact your business, especially in new markets like India?
Going public is a key part of our strategy for the near to medium term. We have taken several steps to prepare for this, including appointing an independent chairman and a strong CFO, as well as engaging the right advisors. This move will provide benefits for both our business and our loyal community of 220,000. By becoming a public company, our investors will have the option to sell their shares, while the company will gain access to capital for future growth. India is a top priority in our expansion plans, as we see great potential for growth in this market. While our flagship IPA beers are already well-established in mature markets like the UK and Europe, we are looking to invest in newer markets like India, Brazil and China. With the IPO, we hope to secure additional capital to support our growth and expansion efforts in these exciting markets. India is very much on top of that list.
Beer is more of a summer drink in India. Do you see that trend changing?
The Indian beer market is distinctive due to the preference for strong beers. Currently, the two most popular beer styles in India are wheat beer and lager, typically consumed in the summer. However, we aim to drive a trend towards craft beer made by local Indian breweries and styles such as IPA, New England IPA, Hoppy Pilsner, Stout, and others. To do this, we believe it is important to also promote the consumption of malt-based beers like Amber Ales, Dark Ales, Stouts, and India Pale Ales, which are better suited for wintertime drinking. This could potentially shift the beer style preference and consumption patterns in India.
The (2021) gold can row was quite an episode for the brand (it was a promotion that encouraged people to look for a solid gold can in cases; a few winners complained that the cans were gold-plated; Watt ended up paying £500,000 to the winners). What are your learnings from it?
I am so enthusiastic about everything that I do things fairly quickly. I also often just get so caught up with ideas or concepts that I don’t quite take the time to check all the details. So, the key lesson for me here is to not get carried away completely with my enthusiasm for things and just take a bit of time before I push the button on things.