Major update as £10m rescue plan launched to save UK brewery giant | UK | News
The founder of BrewDog is set to invest £10 million of his own money to save the brewery giant, which is up for sale after years of losses.
Insiders said James Watt, who steps down as CEO in 2024 and owns a 22% stake in the company, has told potential partners he would contribute his own wealth to a potential acquisition. It went on sale earlier this month AlixPartners appointed as consultant finding a buyer for the business or assets. Following a difficult trading period, the company reported a loss of £37 million against turnover of £357 million last year.
Mr Watt’s alleged offer comes as bidders prepare to submit a second round of bids for the business on Saturday. Sky News. Watt was said to be looking to buy the entire company, although exact details are unclear.
Several major international brewers were believed to be interested in BrewDog, which is known for its craft beers such as Punk IPA and Elvis Juice.
Any sale would be controversial because the money of approximately 220,000 small investors could be at risk. These shareholders invested through BrewDog’s ‘Capital for Punks’ scheme. The company raised around £75 million from customers between 2009 and 2021 by offering shares alongside benefits such as discounts and early access to new beers.
Five years ago BrewDog was rocked by controversy, with dozens of former employees claiming it operated a “culture of fear” in an open letter on Twitter.
The signatories said a “significant number” of former staff “had suffered mental illness as a result of working at BrewDog”. They claimed that the firm was built around the “cult of personality” of its founders. At the time, Mr Watt apologized on behalf of BrewDog.
After being founded by Watt and Martin Dickie in 2007, it has rapidly expanded to operate pubs, hotels and breweries in the UK and internationally.
In 2017, TSG Consumer Partners acquired a 21% stake in BrewDog in a deal that implied a unicorn valuation of at least $1 billion.
But since then, BrewDog has struggled financially, closing bars, laying off jobs and racking up losses. The current sale price is expected to be much lower than the £2bn valuation once mooted.
A BrewDog spokesperson said: “As with many businesses operating in a challenging economic environment and facing constant macro volatility, we regularly review our options with a focus on the long-term strength and sustainability of the company.
“Following a year of decisive action in 2025 with a focus on costs and operating efficiency, we have appointed AlixPartners to support a structured and competitive process to evaluate the next phase of investment for the business.
“This is a deliberate and disciplined step focused on strengthening the long-term future of the BrewDog brand and operations.”
