James Watt Steps Down as Brewdog CEO in 2024
James Watt, co-founder of Brewdog, has announced an offer to repurchase the craft beer company several months after its acquisition by a US firm.
At its height, Brewdog operated four breweries and approximately 100 pubs worldwide, with an estimated valuation exceeding $1 billion.
Earlier this year, Brewdog was acquired by Tilray, a beverage and medical cannabis company, following a collapse involving debts exceeding £500 million, which resulted in hundreds of job losses.
Watt, who co-founded Brewdog with Martin Dickie in Aberdeenshire nearly two decades ago, stated that investors involved in Brewdog's "Equity for Punks" scheme would receive shares "for free" if his takeover bid succeeds.
Investor Concerns Over Shares in New Beer Brand
Approximately 20,000 individuals invested in the "Equity for Punks" scheme, typically purchasing shares worth around £500 at prices between £20 and £30 each. These shares became worthless following the company's collapse.
Watt resigned as chief executive in 2024 and assumed a newly created role titled "captain and co-founder." Martin Dickie departed the company last year, citing personal reasons.
Both Watt and Dickie sold shares to the US private equity fund TSG in 2017, each earning £50 million from the transaction.
After leaving Brewdog, Watt launched a new beer brand called Second Best, offering nearly 20% of its shares to those who lost money in the Equity for Punks scheme.
Former investors have expressed skepticism regarding these plans.
Watt's Email to Investors
In an email to individuals who d to the Second Best offer, obtained by BBC Scotland News, Watt revealed he had made an official proposal to reacquire Brewdog.
"If successful, everyone who has signed up to Second Best will own the same stake in Brewdog they once held. For free."
"The firm should be owned by the equity punks and I will endeavour to ensure that happens."
The Aberdeenshire businessman was previously involved in a bid to repurchase the company after its collapse but was unsuccessful against Tilray.
Disclosure: The Truth about Brewdog
Mark Daly's investigation examined Brewdog's marketing and financial claims, questioning the authenticity of its "punk" image.
Watt recently issued an apology to staff and investors for the "many mistakes" made in managing the company, acknowledging that Brewdog attempted to diversify too rapidly.
While Brewdog's bold marketing approach often generated controversy, the company also faced criticism regarding its treatment of investors and employees.
A 2022 BBC Disclosure investigation uncovered allegations of inappropriate behavior by Watt towards female staff and revealed that Brewdog violated import laws and fabricated numerous marketing stories.
In 2024, the company encountered backlash after announcing it would cease hiring new staff at the real living wage, opting instead to pay the lower legal minimum wage.
Watt denied the allegations presented in the documentary and threatened legal action against the BBC. He later explained that he sometimes misses social cues due to having autism.
A complaint filed with broadcasting regulator Ofcom was dismissed.
Brewdog stated it is implementing various measures to improve workplace culture following the programme's release.
Tilray and Second Best have been approached for comment regarding Watt's letter.
From a £1bn dream to a brutal collapse: How Brewdog hit the rocks
