BrewDog Founder James Watt Admits 'Many Mistakes' After Sale Leads to 484 Job Losses
BrewDog founder James Watt has publicly acknowledged "many mistakes" and expressed profound heartbreak following the company's sale to US firm Tilray Brands, a deal that has resulted in the closure of 38 bars and the loss of 484 jobs. The £33 million acquisition, finalised this week, excluded these bars from the transaction, leading to immediate redundancies and leaving thousands of crowdfunding investors without returns on their investments.
Emotional Admission from the Founder
In a candid social media post shared after the deal was announced, Mr Watt described the week as "incredibly hard" and admitted there are "so many other things I would have done differently." He reflected on the journey of BrewDog, which he co-founded in Aberdeenshire in 2007, stating, "there were highs, lows, successes, failures, huge gambles and many mistakes along the way." Mr Watt, who stepped down as chief executive in 2024 to become "captain and co-founder," emphasised his sorrow for the affected employees and investors.
He said: "I am heartbroken for all of the hard working and passionate team members who have lost their jobs. I am heartbroken for all of our brilliant equity punks who did not get the return on their investment they wanted."
Regrets Over Expansion and Crisis Management
Mr Watt detailed specific regrets, including expanding too rapidly and diversifying too broadly, which he believes contributed to the current situation. He admitted, "At times we expanded too fast, diversified too broadly and I feel that I did not respond to certain crises that we faced (and we faced many) in a way that was authentic to who we were." He also noted a strategic misstep, explaining, "When an underdog strategy works so well that people perceive you as the incumbent, that strategy breaks down, and I should have recognised that earlier."
Reflecting on his early days, Mr Watt shared, "I was 24, working part time on a fishing boat, and still living in my dad’s spare room when we started BrewDog. I had never run a business before, I had no idea what I was really doing and I just made it all up as I went along." Despite the humble beginnings, he expressed deep regret over being unable to save jobs and investments, stating, "I would have loved to save every single job and every single equity punk investment. Ultimately, I couldn’t. That will stay with me."
Impact on Investors and Operations
The sale has particularly impacted those who invested in BrewDog through its "equity for punks" crowdfunding rounds, leaving them empty-handed as the bars were not included in the deal. Mr Watt extended his gratitude, saying, "To our equity punks: thank you for having the conviction to believe in the business when this was just two humans, one dog and a crazy idea."
Under the acquisition, Tilray Brands will take control of key BrewDog facilities, including the brewery in Ellon, Aberdeenshire, and The Hop Hub distribution centre in Motherwell, Lanarkshire. However, only 18 franchise BrewDog bars in the UK and internationally will continue to operate, marking a significant reduction from the previous network.
Looking Forward with Remorse
Mr Watt concluded his message with a heartfelt apology to departing employees, stating, "To our team members leaving this week: thank you. You helped build something that mattered. I am sorry we could not protect you." His remarks underscore the personal and professional toll of the sale, highlighting the challenges faced by the craft beer giant amidst its rapid growth and eventual acquisition.
