James Watt, co-founder of BrewDog, has initiated a significant bid to repurchase the craft beer company's entire UK and Australian operations. This ambitious proposal, announced earlier this week, marks a dramatic turn in BrewDog's recent history, which saw the firm sold to US cannabis and beer maker Tilray Brands in March for a reported £33 million. This figure stands in stark contrast to its peak valuation, which once reached £2 billion, highlighting the substantial shift in the company's financial standing.
Watt's offer, made through a newly established vehicle named 'Second Best', specifically targets BrewDog's remaining 17 UK bars and its flagship brewery in Ellon, Aberdeenshire. It also extends to the Australian assets, which include a brewery in Brisbane and five taprooms located in cities such as Sydney and Perth. Notably, Watt has opted not to pursue BrewDog's US operations, which also fall under Tilray's ownership and comprise a pub and hotel in Columbus, Ohio, alongside three bars in other US locations.
A central tenet of Watt's comeback strategy is to re-engage the thousands of 'equity punks' – retail investors who previously bought shares in BrewDog but received no return from its sale to Tilray. Watt has publicly stated his intention to grant a stake in the company to these 43,000 retail investors who have reportedly signed up to his initiative, as well as to all BrewDog employees. He articulated his vision on LinkedIn, stating that the company 'deserves to belong to them once more', recognising the role of these individuals in BrewDog's growth from a Scottish startup to a significant player in the craft beer market.
However, Watt's bid is not without controversy. The Guardian has reported that he could face an investigation from the UK's Information Commissioner's Office (ICO). Several former BrewDog investors have lodged complaints, expressing concerns over how Watt acquired their personal contact details to present his buyback offer. This raises questions about data privacy and compliance, especially given the large number of individuals involved in BrewDog's previous crowdfunding rounds.
Adding another layer of complexity, Nasdaq-listed Tilray Brands has firmly rejected Watt's overtures. The company has publicly stated that BrewDog is 'not for sale', indicating a clear reluctance to divest the assets it acquired only a few months prior. This firm stance from Tilray suggests that Watt's attempt to regain control could face significant resistance, potentially leading to a protracted negotiation or a complete impasse.