James Watt, the co-founder of Scottish craft beer giant BrewDog, has announced his return to the brewing industry with a new crowdfunded venture named Second Best. The announcement, made on Friday, signals Watt's intention to launch a new beer brand with a direct appeal to the 'equity punks' – the retail investors who previously backed BrewDog through crowdfunding but saw their investments wiped out following the company's collapse and subsequent sale earlier this year.
Watt's previous company, BrewDog, which he co-founded in 2007, grew into a globally recognised brand largely on the back of its innovative crowdfunding model, dubbed 'Equity for Punks'. This model allowed thousands of small investors to buy shares in the company, fostering a strong community of loyal customers and shareholders. However, the recent collapse of the original BrewDog entity left these 'equity punks' empty-handed, sparking considerable discontent among the investor base.
The launch of Second Best marks a direct effort by Watt to re-establish trust and offer a new opportunity to these disenfranchised investors. Details about the new brand's specific offerings and initial funding targets are expected to be released as the crowdfunding campaign progresses. Watt's return comes after a period where he faced significant scrutiny over allegations regarding BrewDog's workplace culture, which he has largely denied or addressed with commitments to improvement.
The decision to once again pursue a crowdfunded model for Second Best is a bold move, given the recent history with BrewDog's investors. It suggests a belief that the appeal of direct investment in a burgeoning beer brand, coupled with Watt's personal brand recognition, can still attract significant capital from the public. The success of this new venture will largely depend on its ability to convince previous investors and new backers that it offers a more secure and rewarding proposition than its predecessor.
Industry observers will be watching closely to see if Watt can replicate the early success of BrewDog's crowdfunding efforts without repeating the pitfalls that led to its eventual collapse and the loss of investor funds. The craft beer market remains competitive, and establishing a new brand from scratch, even with a recognised founder, presents considerable challenges.