BrewDog Founder Expresses Heartbreak Over Job Losses and Investor Returns
James Watt, the founder of BrewDog, has publicly expressed his profound sorrow and regret for investors left empty-handed and employees who lost their jobs following the craft brewer's recent acquisition by a US firm. Mr Watt stated he was "heartbroken" for those affected, adding there were "so many other things I would have done differently".
Details of the Acquisition and Its Impact
The takeover by Tilray Brands, valued at £33 million, resulted in the closure of 38 bars and the loss of 484 positions across the company. Crucially, the deal meant that individuals who had invested in BrewDog through its popular "equity for punks" crowdfunding initiatives received no returns on their investments, leaving many disappointed.
James Watt's Personal Reflections and Regrets
Mr Watt co-founded the Aberdeenshire-based company in 2007, overseeing its rapid expansion from a small startup to a major player in the craft beer industry. He transitioned from chief executive in 2024 to assume the role of "captain and co-founder", a move that preceded this week's challenging events.
On Wednesday, he shared a post on social media saying this week had been "incredibly hard". He elaborated: "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."
Admission of Strategic Mistakes and Expansion Issues
Reflecting on his journey, Mr Watt acknowledged his inexperience at the outset: "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."
He admitted to strategic missteps: "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. With the benefit of hindsight there are also so many other things I would have done differently."
Mr Watt highlighted specific areas of regret: "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."
Inability to Save Jobs and Investments
Expressing further remorse, Mr Watt spoke of his regrets at being unable to save jobs and investments: "I would have loved to save every single job and every single equity punk investment. Ultimately, I couldn’t. That will stay with me."
He offered heartfelt messages to those affected: "To our team members leaving this week: thank you. You helped build something that mattered. I am sorry we could not protect you. 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."
Future Operations and Deal Specifics
Despite the closures, BrewDog’s 18 franchise bars in the UK and internationally will continue to operate following the company purchase. The Tilray deal will see it take control of BrewDog facilities including its brewery in Ellon, Aberdeenshire, and The Hop Hub, a national distribution centre in Motherwell, Lanarkshire, marking a significant shift in the company's ownership and operational structure.
