James Watt, co-founder of BrewDog, said he is “heartbroken” for those who lost their investments in the business after it was sold for a cut-price £33 million to a US company.
Tilray Brands, which is also in the medicinal cannabis business, will acquire BrewDog’s brands, some of its bars, its brewery at Ellon in Aberdeenshire and its operations in the US and Australia. It will take on 733 workers in the UK but it will shut 38 bars with the loss of 484 jobs.
Mr Watt said admitted the business had expanded too quickly, diversified too broadly and that he lost control of spending.
“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 said in a social media post.
“There is much more to say about the final chapter. In time, I will tell that story. Today is not that day.”
He thanked all those who backed the company and said there were things he could have done differently.
“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,” said Mr Watt, who set up the business in a garage with his friend Martin Dickie in 2007.
“It was an honour and a privilege to dedicate my life to trying to build something truly amazing for all of our fantastic team members and everyone involved.
“I am sorry that I was not able to repay the faith you bestowed in me with the outcome you all deserved.
“I still love the business. It will always feel like an intrinsic part of me. I will always be cheering it on from the sidelines, even if the next chapter is now going to be written by others.”
BrewDog grew into a £1 billion company and was touted for a stock market listing, but the pair also saddled the company with £800m of debt as a 21% stake was sold to TSG Partners.
Watt and Dickie shared a reputed £100m in the deal and TSG demanded preference shares which entitled it to priority payout in the event of a sale. This left the “equity punks” empty-handed when the sale was announced this week at 1.7% of its earlier value.
Mr Watt responded to comments that he left the “equity punks” exposed by saying they had the same opportunity to sell at the time of the TSG deal.
He hinted at a possible revival of the “equity punk” process, and possibly a return to brewing, in a reply that said: “Maybe the Equity Punk story is not quite finished yet….”
Full text of James Watt’s post:
This week has been incredibly hard.
It is really difficult to find the right words and know what to say.
On Monday, the business I co-founded in 2007 was sold.
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. And heartbroken to have dedicated the best 20 years of my life to something that ultimately did not have the ending we all wished for.
I put my heart, my soul and every ounce of energy into building BrewDog as CEO from inception until early 2024 as we grew from a garage to the world’s leading independent beer brand. We employed thousands and challenged an entire industry.
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.
As the business grew exponentially, our very public success definitely changed things: it changed how people saw us, it changed how people interacted with us, it changed how the media portrayed us, and perhaps, on some levels it changed us too.
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. At times we expanded too fast and diversified too broadly. During certain periods I did not control spend well enough across the business and furthermore I feel that I did not respond to certain crises that we faced (and we faced many) in a way that was authentic and true to who I am. Those decisions sit with me.
During my 17 years in charge there were highs, lows, successes, failures, huge gambles and many mistakes along the way.
Ultimately, the mistakes hurt far more than the successes console.
I would have loved to save every single job and every single equity punk investment. Ultimately, I couldn’t. That will stay with me.
There is much more to say about the final chapter. In time, I will tell that story. Today is not that day.
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.
It was an honour and a privilege to dedicate my life to trying to build something truly amazing for all of our fantastic team members and everyone involved.
I am sorry that I was not able to repay the faith you bestowed in me with the outcome you all deserved.
I still love the business. It will always feel like an intrinsic part of me. I will always be cheering it on from the sidelines, even if the next chapter is now going to be written by others.
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