Budding is a type of asexual reproduction in which a new organism develops from an outgrowth or bud due to cell division at one particular site. The small bulb-like projection coming out from the yeast cell is called a bud. Since the reproduction is asexual, the newly created organism is a clone and excepting mutations is genetically identical to the parent organism.
Diploid cells of brewer’s yeast look, grow, and asexual reproduce by a type of mitosis called budding. The bud is cut off from the parental cell, and both new cells, begin the cell cycle all over again. Both haploid and diploid yeast cells grow and reproduce this way.