BrewDog founder James Watt is reportedly considering launching a bid to buy back the Scottish brewer.
According to reports first published in industry newsletter Propel over the weekend, Watt is weighing up whether to try and take back control of the company he launched with Martin Dickie in 2007.
BrewDog – which declined to comment on the speculation when approached by The Grocer – is understood to be working with advisors on its future, following a period of flatlining sales and mounting losses.
Last October, the brewer informed employees of an internal restructure affecting “a number of roles across several departments”.
In an internal email written by CEO James Taylor, the Scottish craft brewer and distiller said it had “made the difficult decision to right-size parts of the business”.
Net revenues at BrewDog in the year ended 31 December 2024 were flat at around £280m, while pre-tax losses remained substantial at £36.6m, down from £59.2m the year prior.
It was the fifth successive year in which BrewDog had posted substantial pre-tax losses, with the company last announcing a profit in 2019. Cumulative losses in that time now stand at £148m.
BrewDog drew on its private equity partner TSG for another £20m in funding in 2024, and also announced the closure of 10 of its UK bars in a bid to cut costs.
It is unclear whether TSG would be open to selling its 22.5% stake in BrewDog, acquired for £213m, in 2017.
The value of the private equity firm’s stake has grown to north of £800m, thanks to a compounding interest coupon inserted into the terms of the deal stuck nine years ago.
Watt’s return to BrewDog would represent a seismic u-turn, less than two years after the Scottish entrepreneur announced his decision to step down as CEO in May 2024.
Speaking at the time, Watt said: “Being able to co-found and then lead BrewDog and our fantastic team has been the greatest privilege and the best adventure I could ever have wished for. After 17 fantastic years as chief executive, I have decided to transition into a new role in the business, one of ‘captain and co-founder’.
“In my new role I will remain as a board member, a director and I will also be part-time strategic advisor to the business and our leadership team. Furthermore, I will retain my BrewDog shareholding.”
Watt was approached by The Grocer for comment.
No comments yet