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Scottish craft beer company Brewdog is preparing to reveal the sale of its business next week, according to an internal email from its chief executive. Originally established in 2007 by James Watt and Martin Dickie, Brewdog has grown into a global brand with numerous breweries and pubs, including around 60 locations in the UK. Despite its expansion, the company has struggled with profitability in recent years, leading to the involvement of consultancy firm AlixPartners to explore options.
In the email shared with staff, Brewdog’s CEO James Taylor described the decision to sell as difficult and expressed regret for the uncertainty it might cause employees. He also announced that the company would temporarily suspend online sales during the ownership transition but assured that Brewdog bars would remain open over the upcoming weekend. Taylor noted significant interest from prospective buyers and promised a comprehensive update during an all-staff meeting scheduled for early next week. Meanwhile, it was confirmed that Brewdog’s operations in Germany, including its brewery and bar in Berlin, are excluded from the sale and will be liquidated.
Brewdog has a large base of investors through its Equity for Punks crowdfunding initiative, launched in 2009, which attracted approximately 200,000 individuals contributing to the company’s rapid growth. This fundraising campaign raised about £75 million before closing to new investors in 2021. However, concerns have surfaced among these shareholders regarding the potential sale’s impact on their investments. In contrast to these ordinary shareholders, the American equity firm TSG Consumer Partners, which acquired a 22% stake in 2017, holds preference shares. This means TSG has priority in recouping its investment with any returns, potentially leaving little or no payout for smaller investors. Some investors fear their shares may become worthless, while others acknowledge the inherent risk of such investments. Importantly, there are no allegations of illegal activity related to these arrangements.
The company has recently taken several steps to refocus its operations amid financial challenges. Last month, Brewdog ceased production of its gin and vodka lines at the Ellon distillery in Aberdeenshire. Additionally, the business implemented job cuts in October following a substantial £37 million loss. Earlier this year, Brewdog announced the closure of ten UK bars, including its flagship location in Aberdeen. The firm currently employs around 1,400 people and operates breweries in the US, Australia, and Germany. While the company once marketed itself as a rebellious force against the traditional UK brewing industry, it faced backlash in 2024 after deciding to stop hiring staff at the real living wage, opting instead to pay the minimum legal wage
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