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A significant change is on the horizon for Scottish craft beer giant Brewdog as they have announced the closure of 10 bars across the UK, including the flagship pub located in Aberdeen. This decision has been met with criticism from trade union Unite, who expressed concerns about the abrupt nature of these closures, with some pubs expected to shut down “within days.” Among the bars facing closure are Aberdeen Gallowgate, Dundee, Leeds, Brighton, and three in London. Brewdog was founded in 2007 by fishermen James Watt and Martin Dickie in Fraserburgh, Aberdeenshire.
A Brewdog spokesperson cited “ongoing industry challenges” as the primary reason behind this difficult decision. These challenges include rising costs, increased regulation, and economic pressures that have made it impossible to sustain the profitability of these establishments. Despite acknowledging the historical significance of some of the locations chosen for closure, the spokesperson emphasized that there was simply no realistic prospect of making these venues commercially viable in the current landscape. The focus now shifts towards redefining the bar division’s strategy for long-term and profitable growth.
Bryan Simpson, the national lead for hospitality at Unite, condemned Brewdog for providing loyal workers with less than four days’ notice of their workplace closures, labeling the company’s actions as morally repugnant and potentially unlawful. Expressing solidarity with affected employees, Unite is offering legal support to challenge these redundancies collectively. Brewdog assured that a 14-day consultation process would be undertaken for all staff at risk of redundancy, with efforts in place to redeploy them. The company’s global presence includes breweries and pubs in various countries, with 71 establishments in the UK, including 17 in Scotland, as well as bars in Dubai, the USA, and Australia.
Brewdog has garnered attention in recent years not only for its craft beers and IPAs but also for its marketing campaigns and workplace culture. While the company has faced criticism for fostering a “culture of fear” and toxic attitudes towards junior staff, it has also weathered allegations of inappropriate behavior against founder and former CEO James Watt. Despite these challenges, Brewdog’s revenue reached £321.2m in the 2022-23 financial year, marking a return to profitability after a period of struggle. The company’s foray into the Chinese market in 2023 and its expansion with US brewing giant Budweiser demonstrate a commitment to long-term growth and sustainability in a competitive industry
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