New Beer Brand to Compensate Former Brewdog Investors
James Watt, co-founder of Brewdog, has revealed plans to launch a new beer company and intends to offer free shares to individuals who incurred losses investing in his original enterprise.
Watt, who co-established the craft beer company with Martin Dickie in 2007, saw Brewdog grow to operate four breweries, approximately 100 pubs worldwide, and achieve a valuation exceeding $1 billion at its peak.
However, the company later collapsed under debts surpassing £500 million and was acquired by the US-based firm Tilray earlier this year.
Watt announced he will allocate nearly 20% of shares in his new beer venture, named Second Best, to those who lost money after investing in Brewdog's Equity for Punks scheme.
Equity for Punks was Brewdog’s internal crowdfunding initiative, offering beer enthusiasts the opportunity to "own a slice of the brewery and share in its success and growth."
In exchange, Brewdog provided benefits such as discounts on beer purchases, complimentary birthday beers, and invitations to its "Annual General Mayhem" AGM, which featured live music and beer tastings.
The scheme reportedly raised £75 million, facilitating Brewdog's expansion into international markets.
Nevertheless, the company later sourced equity from other investors, and when the US equity firm TSG Consumer Partners acquired a 22% stake in Brewdog, they received "preference shares."
This arrangement meant that upon Brewdog’s sale, TSG was prioritized to recover its investment plus any owed returns.
Beverage and medical cannabis company Tilray purchased Brewdog's UK brewing operations, brand, and 11 pubs in a £33 million deal in March.
Administrators stated that the sale preserved 733 jobs, but 484 jobs were lost and 38 bars closed as they were excluded from the rescue deal.
They also clarified that investors in the Equity for Punks scheme would not receive any returns from the transaction.
Investors previously informed BBC Scotland that they lost up to £12,000 following the company's sale.
Second Best: Watt’s New Venture
Watt stepped down as Brewdog’s chief executive in 2024 and subsequently issued an apology to staff and investors for the "many mistakes" made, acknowledging that the company attempted to diversify too rapidly.
In announcing his new project on social media, Watt stated:
"Thousands of people trusted me to build a brilliant beer business and create value for them.
It was an obligation I took very seriously. And I, for one, am not done with that obligation."
He indicated plans to allocate up to 19.3% of Second Best to former investors.
Watt asserted that these investors would be able to "claim the exact stake" they previously held in Brewdog "for free."
He added:
"No catches, no cash required, and your equity in Second Best will always rank alongside my own.
You'll own it. I'll fund it. And I'll dedicate myself to building it. You're not shareholders this time. You're second founders."
Watt noted that the company is still in the process of obtaining relevant licenses and legal approvals, so a launch date has not been set and "may take some time."
He also mentioned hopes to initially introduce an "alcohol adjacent concept."
