**Brewdog Co-Founder James Watt Proposes Buyback of Craft Beer Company**
James Watt, the co-founder of Brewdog, has officially made an offer to repurchase the craft beer company he helped establish nearly two decades ago. This move comes just months after Brewdog was sold to the US-based beverage and medical cannabis company, Tilray, following a significant financial downturn that left the company with debts exceeding £500 million and resulted in hundreds of job losses.
At its height, Brewdog was a major player in the craft beer industry, boasting four breweries and around 100 pubs globally, with a valuation surpassing $1 billion. However, the company's rapid expansion and subsequent financial struggles led to its acquisition by Tilray earlier this year.
Watt, who co-founded Brewdog with Martin Dickie in Aberdeenshire, Scotland, has expressed a commitment to restoring the company to its former glory. In an email to investors who participated in Brewdog's "Equity for Punks" scheme, Watt stated that if his buyback bid is successful, those investors would receive shares in Brewdog at no additional cost. This scheme had attracted approximately 20,000 investors, many of whom had invested around £500, only to see their shares rendered worthless following the company's collapse.
After stepping down as Brewdog's chief executive in 2024, Watt transitioned to a newly created role as "captain and co-founder." Dickie, on the other hand, departed from the company the previous year, citing personal reasons. Both founders had previously sold shares in Brewdog to a US private equity firm, TSG, in 2017, each pocketing approximately £50 million from the deal.
Following his exit from Brewdog, Watt launched a new beer brand called Second Best, which aimed to offer nearly 20% of its shares to individuals who lost money in the Equity for Punks scheme. However, many former investors have expressed skepticism regarding Watt's promises.
In his recent communication to potential investors, Watt reiterated his belief that Brewdog should be owned by its equity punks, emphasizing his determination to make that a reality. He previously attempted to buy back the company after its financial struggles but was ultimately outbid by Tilray.
Watt has acknowledged the mistakes made during his tenure at Brewdog, including a hasty diversification strategy that may have contributed to the company's financial woes. He has publicly apologized to both staff and investors for these missteps.
Brewdog's marketing tactics have often been polarizing, and the company has faced criticism over its treatment of employees and investors. A BBC Disclosure investigation in 2022 revealed allegations of inappropriate behavior by Watt towards female staff members and highlighted instances of the company violating import laws and misrepresenting its marketing narratives. In 2024, Brewdog faced backlash after announcing a shift away from hiring new staff at the real living wage, opting instead to pay the legal minimum wage.
Watt has denied any wrongdoing related to the allegations and has threatened legal action against the BBC. He later attributed some of his social misunderstandings to being on the autism spectrum. A complaint lodged with the broadcasting regulator Ofcom regarding the BBC's coverage was ultimately dismissed.
In light of the controversies, Brewdog has stated that it is implementing various measures to enhance its workplace culture following the fallout from the BBC program. As Watt's buyback proposal unfolds, both Tilray and Watt's new venture, Second Best, have been approached for comment regarding his recent letter to investors.
As the craft beer industry continues to evolve, the outcome of Watt's bid to reclaim Brewdog will be closely monitored by both investors and industry observers alike.