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The Guardian World1 min read
Brewdog founder to give shares in new beer brand to old investors
TL;DR
Brewdog founder James Watt is launching a new beer brand called Second Best, offering free shares to investors who lost money in Brewdog. Nearly 20% of shares will be allocated to those affected by Brewdog's collapse and debts exceeding £500m.
Key points
- Brewdog founder James Watt is launching a new beer brand.
- The new brand is called Second Best.
- Watt will give nearly 20% of shares to old investors.
- Brewdog collapsed with debts over £500m.
- Brewdog was taken over by Tilray earlier this year.
Mentioned in this story
BrewdogTilrayJames Watt
One of the founders of Brewdog has announced plans to launch a new beer brand, promising free shares to people who lost money in his original venture.
James Watt co‑founded the craft beer company with Martin Dickie in 2007. At its peak, Brewdog had four breweries, around 100 pubs worldwide, and a valuation exceeding $1bn.
However, the company collapsed with debts of more than £500m and was taken over by US based Tilray earlier this year.
Watt says he will allocate nearly 20% of shares in his new beer company, called Second Best, to people who lost money after investing in Brewdog's Equity for Punks scheme.
Equity for Punks was an in-house crowdfunding scheme, promising beer enthusiasts a chance to "own a slice of the brewery and share in its success and growth".
In return Brewdog offered perks such as discounts on beer purchases, free birthday beer and invitations to its "Annual General Mayhem" AGM with live music and beer tastings.
The scheme is said to have raised £75m, which allowed Brewdog to expand into the international market.
However, the company went on to source equity from elsewhere and when US equity firm TSG Consumer Partners acquired a 22% stake in Brewdog, they were given "preference shares".
This meant when Brewdog was sold, TSG was first in the queue to get back its investment plus any return owed.
Beverage and medical cannabis company Tilray bought the company's UK brewing operations, brand and 11 pubs in a £33m deal in March.
Administrators said the sale had preserved 733 jobs - but that 484 jobs had been lost and 38 bars had closed after they were not included in the rescue deal.
They also made clear that those who invested in the Equity for Punks scheme would not get any return from the deal.
Investors previously told BBC Scotland that they lost up to £12,000 after the company was sold.
Watt stepped down as chief executive of the company in 2024 and later apologised to staff and investors for the "many mistakes" made, admitting the company tried to diversify too quickly.
Announcing his new venture, Watt said on social media: "Thousands of people trusted me to build a brilliant beer business and create value for them.
Q&A
What is the new beer brand launched by Brewdog's founder?
The new beer brand launched by Brewdog's founder is called Second Best.
How much of the new beer company's shares will be given to old investors?
Nearly 20% of the shares in the new beer company will be allocated to investors who lost money in Brewdog.
What happened to Brewdog that led to its collapse?
Brewdog collapsed with debts exceeding £500m and was taken over by US-based Tilray earlier this year.
