Scottish Brewery Expands to Global Market

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Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. brewery / ˈbru ə ri / (n) – a place where beer is made
    Example:

    The beer company owns 50 breweries worldwide.


  2. expand / ɪkˈspænd / (v) – to increase the size or range of something
    Example:

    It started as a small local grocery, but it expanded its operations to 30 other cities.


  3. crowdfunding / ˈkraʊdˌfʌn dɪŋ / (n) – the process of asking small amounts of money from a large number of people to fund something
    Example:

    Some aspiring businessmen practice crowdfunding to start their businesses


  4. acquire / əˈkwaɪər / (v) – to own a property
    Example:

    They acquired a new company for $100 million.


  5. stiff / stɪf / (adj) – tough or difficult
    Example:

    Businesses should constantly find ways to survive stiff competition.


Article

Read the text below.

BrewDog, the largest independent brewery in Scotland, plans to expand to more locations around the world.


BrewDog had previously expanded to several locations worldwide, including Sweden and Japan. In 2015, the brewery also raised $50 million through crowdfunding to start its expansion in the United States. The company successfully built its first US brewery in 2016 and is currently constructing a second one. BrewDog, which started from selling beers from the back of a van, was able to grow its revenue at a 44% compound annual growth rate since its operations began in 2007.


This year, the craft beer producer is planning to build a brewery in Asia to take advantage of its growing Asian market. China is becoming one of BrewDog’s leading export markets in 2017, while craft beer sales in Japan and South Korea are also increasing.


BrewDog is also considering expanding to France and Australia. The company’s global expansion will be supported by TSG Consumer Partners, a private equity firm. TSG Consumer Partners acquired 22% of the company for $265 million last April. From this amount, $124 million will be used for BrewDog’s expansion.


BrewDog’s remarkable success comes amid the stiff competition that craft beer makers face. Up against BrewDog are small local breweries, brew pubs, and even macrobreweries that enter the craft beer market by acquiring smaller companies. Among these huge breweries is the Japanese brand Sapporo, which acquired Anchor Steam for $85 million. Anchor Steam was one of America’s first craft beer makers, but it struggled to maintain its operations amid the tight competition.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

• How can companies retain the quality of their products while expanding to a larger market? Discuss.
• What challenges can companies face when offering their products to a foreign market? Discuss.

Discussion B

• What characteristics should a product have to stand out from its competitors? Discuss.
• If you were to start a business, would you sell a product already offered by other companies or would you create a new type of product? Why?