A leak in the tap has revealed that Shanghai's own craft beer crew Boxing Cat Brewery are moving into the big leagues. DRiNK Magazine reported yesterday that news emerged that the brewery has been acquired by ZX Ventures, the venture capital arm of Anheuser-Busch InBev (AB InBev) and, in its own words, 'a global disruptive growth group'.
Who the eff are AB InBev, you ask? Think Budweiser, Stella Artois, Hoegaarden, Corona, Beck's Leffe, Michelob Ultra, Foster's... you get the idea. This beer behemoth owns all of them and many more, now adding Shanghai's biggest craft beer brand to its portfolio.
This isn't AB InBev's first move in the city. By now you've likely heard about Chicago-born Goose Island Brewhouse's flagship location in China, which opened last month on Maoming Lu in Jingan. That's these guys, too – with the Shanghai locale being one of many Goose Island hubs popping up around the globe.
Even before that, the beginning of this year saw the multinational company taking on Belgian beer brand and Shanghai mainstay Kaiba Craft with the eye to evolve it into a recognised China craft beer brand. After the takeover, Kaiba subsequently opened a new venue in Tianzifang, below its already established Tap House location, which is intended to serve as a hub to promote local craft beer culture. It will be the first of many, DRiNK Magazine reports.
What does all this mean for you, drinkers? Firstly, no immediate changes in the Boxing Cat world. Founders Kelley Lee and Lee Tseng and brewmaster Michael Jordan will be remaining with the brand. Tseng tells us, 'Kels, myself and Michael Jordan will be staying on as full time operators and making all decisions on the brand direction moving forward as we expand nationally.'
Is it selling out? 'We want to achieve the dream Kels and myself had when founding the brand nine years ago: to give China a craft beer nationally they can call their own and be proud of,' Tseng says. 'We had mulled over several possible options on how to move forward and ultimately decided that AB InBev with their strong existing production and distribution structure in China, as well as their dedication to quality, their track record internationally over the past two years with other craft beer portfolio brands acquired, and of course their vision for helping to develop a healthy craft beer market for all of China.'
There's no arguing that an injection of what must be a massive amount of funds can make dreams come true. 'We will be helping to develop a more educated market with our expansion into key regions and ideally assist the local Chinese consumer in expanding their understanding and appreciation for better beer moving forward.'
It's a bold move from AB InBev and not one that is necessarily benign nor without controversy. Founder of Beijing-based Great Leap Brewing Carl Setzer says, 'This is a way to corner a market that is very young – that [AB inBev] perceives as soft – and that they couldn't do in America for a whole number of reasons.' Setzer continues, 'It's great for Boxing Cat Brewery, but bad for China craft brewing because it's still an emerging industry that is under-regulated and growing. It's loosely defined anywhere outside of first tier cities. The last thing we need is a commercial brewing conglomerate determining how we are all defined.'
And for the future of craft brewing in China? Setzer argues, 'This will do one of two things for China craft: it will create an urgency in the community to unify and increase our market share collectively, or it will expose the sad truth that too many are getting into craft beer in 2017 to preen themselves for a potential acquisition. Those just looking for quick money should talk to Lee Tseng and Kelley first. No one can take away what they did for all of us and it wasn't easy. Either way, things are about to change in a perceivable way. '
All in all, it looks like AB InBev is on a mission to make its mark on China's craft brew scene. Whether the acquired brands are able to maintain the same indie feel and authenticity that won them ardent fans in the first place is to be seen. Regardless of anything else, it's certainly a huge kudos to Boxing Cat and the strength of the brand.
We'll be on the lookout to see who's snapped up next. In the meantime, expect to see a lot more of Boxing Cat around town, around China, and eventually around the world.
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