Budweiser's new Wenzhou brewery officially kicked off on Friday as several trucks painted with Budweiser's logo headed for markets loaded with newly brewed beers from the company's most advanced smart green brewery.

Cochair and CEO of Budweiser APAC Jan Craps speaks at the opening ceremony for the brewery on Friday. Photos: Courtesy of Budweiser

The brewery, equipped with the most advanced technology, including an automatic warehouse system and a renewable energy and digital control center, can produce 600,000 tons of beer annually, Cochair and CEO of Budweiser APAC Jan Craps told the Global Times during the brewery's opening ceremony.

"The brewery is also a foreign-invested project with the biggest investment for a single unit investment at the Economic Development Zone in Wenzhou, Southeast China's Zhejiang Province," Craps said.

Smart, green and future brewery

Craps noted that this is Budweiser's first brewery with a fully automatic warehouse in China.

"Using autonomous means, we can put the pallets in the right spots, and have electric forklifts that run on lithium batteries take the pallets out of the warehouse and deliver them by truck," Craps said.

In addition to technology focused on increasing the brewery's efficiency, the Wenzhou brewery is also well-equipped with cutting-edge environmental protection technology such as renewable energy and water reclamation technology.

"When you look at this dream technology, we are using solar panels combined with a fully reclaimed water system that makes this brewery one of the most advanced breweries in water reuse, which is also very important to us," Craps added.

The new brewery aims to build a smart manufacturing ecosystem for the Chinese beer industry and will become an important strategic pivot for Budweiser to further serve the Chinese market and support its geographic expansion, according to Craps.

Belgian Ambassador to China Dr Jan Hoogmartens (sixth from left) and Secretary-General of CADA He Yong (third from left) attend the ceremony with local government officials in Wenzhou, Zhejiang Province.

Local interaction

Budweiser has been doing business in China for more than 30 years, and it now has more than 30 world-class breweries in more than 10 provinces in the country. The company has also deeply engaged with local businesses and society.

For Budweiser, partnerships with local companies are key as their operations are local. 

"Such cooperation between enterprises can combine our advantages, and facilitate our supply chain and create a win-win situation," Craps said.

The new brewery has nailed down successful partnerships with several local companies. 

For instance, Shengxing Bode, a new materials company in the region, will provide aluminum cans to the brewery in 2021. 

For years, Budweiser has been keeping to its commitment to build a Hope School whenever the company builds a new factory in China. 

With the completion of the Wenzhou brewery, the company also established its 28th Hope School in China.

Improved confidence 

The unpredictable COVID-19 pandemic has cast a heavy cloud over the global economy, causing business to suspend activities and creating hurdles for consumption as many people have to stay at home due to the pandemic.

At the beginning of the outbreak, Budweiser was not exempt as most sales channels closed, which greatly impacted the industry. 

However, China's success at controlling the pandemic, efficient governance and, most importantly, the huge potential of the Chinese market gave Craps and Budweiser the confidence to expand the company's business in China.

Thanks to China's handling of the pandemic, as of the month of May, "we've seen sales channels recover in a strong way." 

By the end of September, more than 90 percent of nightlife had also completely recovered. 

Additionally, home and restaurant channels are back to 100 percent, he said.

Besides the handling of COVID-19, China's friendly business and investment environment has also boosted Craps' confidence in doing business in China. 

Despite the difficulties COVID-19 brings, "Budweiser still decided to pursue our commitments to build a new brewery here, because we see this as a very important expansion market for us."

"The government helped us in different ways, not only in helping us to find a right way to get our business licenses, but also recruit the right talents and also provide the right infrastructure such as road access to the brewery and access to gas and water," Craps explained.

Employees work in Budweiser's smart, green and future brewery in Wenzhou, East China's Zhejiang Province.

Commitment to China

Over the past 30 years, the company has not only witnessed China's fast development, but also enjoyed the growth of the consumer market. 

Now Budweiser, which has many local brands including Yandangshan, Double Deer and Harbin, is eyeing the premium market in China, according to Craps.

"When you think about our business today, we are always looking to expand; as disposable income increases across different provinces, premiumization happens, and we see opportunities to expand our business in more provinces," Craps noted.

"I think China is a country that has been very visionary in how to organize consumer markets and how to increase disposable income for consumers. I think it's widely expected that China will become the biggest consumer market in the world in the near future," Craps said.
Newspaper headline: Commitment to the Chinese market