BrewDog, the leading independent craft brewer behind brands including Punk IPA and Elvis Juice, has enlisted advisers to manage a potential sale that could lead to the breakup of one of Scotland’s most well-known businesses. Sky News has reported that BrewDog’s board has engaged AlixPartners, experts in restructuring, to handle inquiries from potential buyers.
According to sources, AlixPartners has initiated discussions with potential suitors in recent days, setting a quick deadline for initial offers. A sale could result in many of BrewDog’s approximately 220,000 individual shareholders, who invested through the ‘Equity for Punks’ program, seeing minimal returns on their average investment of around £400. However, some shareholders have profited significantly by selling their shares in previous funding rounds.
BrewDog raised approximately £75m overall from the sale of shares to customers, providing benefits like discounts and early access to new craft beers. The company’s initial crowdfunding took place in 2009, with the most recent round occurring in 2021.
The sale process coincides with challenging times for independent brewers, as evidenced by the recent sale of the group behind Black Sheep through a pre-pack administration. Established in 2007, BrewDog gained a reputation for innovation, with founders James Watt and Martin Dickie often generating controversy with their marketing campaigns.
Reports suggest that Mr. Watt, a major shareholder in BrewDog, is contemplating a bid to repurchase the company, seeking support from financial backers. It is believed that the company’s current valuation is significantly lower than the previously speculated £2bn, which had raised hopes of a future stock market listing among investors.
In 2017, TSG Consumer Partners acquired a 21% stake in BrewDog, valuing the company at a minimum of $1bn. However, BrewDog has faced increasing losses since then, shutting down several bars and reducing its workforce. Last year, the company reported a £37m loss on a turnover of £357m.
BrewDog operates 72 bars globally, including locations in London and Las Vegas, employing approximately 1,400 people. The company holds a 4% share of the UK off-trade grocery market by value and produces five of the top eight UK craft beer brands, such as Hazy Jane, Wingman, and Lost.
The company’s four breweries, situated in Ellon (Scotland), the US, Australia, and Germany, could potentially be sold separately from the rest of the group, depending on the progress of the AlixPartners-managed process. Five years ago, BrewDog faced allegations from former employees regarding a «culture of fear.»
Mr. Watt stepped down as chief executive in 2024, and recent reports indicate a positive shift in BrewDog’s culture, with the company being recognized on lists of reputable employers. BrewDog has emphasized its commitment to long-term sustainability and strength, appointing AlixPartners to facilitate a competitive process for evaluating future investment opportunities.
The company maintains that it remains a global pioneer in craft beer, a premier consumer brand, the top independent brewer in the UK, and with a highly engaged global community. While substantial interest is expected in BrewDog, no final decisions have been made, and the company’s breweries, bars, and venues continue to operate normally.
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Please note that BrewDog has refrained from commenting on further speculation surrounding its future.
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