Brewdog Co-Founder James Watt Pledges £10m in Personal Rescue Effort
James Watt, the co-founder and former chief executive of Brewdog, is set to inject £10m of his own money into a rescue bid for the struggling craft brewer. According to reports from Sky News, Watt, who stepped down from his role in 2024, is actively assembling financial backing from external investors to support the group. Insiders revealed that he has informed prospective partners of his commitment to contribute this substantial personal sum towards acquiring the company.
Sale Process and Investor Interest
This financial commitment comes just hours before suitors are required to submit second-round offers for Brewdog. An initial round of bids was made earlier in the week, with several multinational brewers expected to compete for the brewery assets and popular brands such as Punk IPA and Elvis Juice. Watt, the Aberdeen entrepreneur who founded Brewdog in 2007, is reportedly keen to acquire the group in its entirety, although the specifics of any potential deal remain unclear at this time.
It was reported last Saturday that Brewdog had been put up for sale, with Alix Partners brought in to assess prospective bidders. A sale could leave many of Brewdog's approximately 220,000 individual shareholders, who invested through the 'Equity for Punks' scheme, with minimal returns on their average outlay of around £400.
Financial Struggles and Market Position
The company has faced significant challenges in the hospitality sector, including losses and the closure of bars. Brewdog raised about £75m overall from selling shares to customers, offering perks like discounts and early access to new craft beers. Its first crowdfunding campaign took place in 2009, with the most recent occurring in 2021.
In 2017, TSG Consumer Partners acquired a 21% stake in Brewdog in a deal that implied a unicorn valuation of at least $1bn (£732.55m). However, since then, the company has struggled financially. In 2024, it achieved gross sales of £357m, shipping products to over 50 countries, but incurred a loss of £37m on turnover.
Brewdog operates 72 bars globally, including locations in London and Las Vegas, but closed 10 bars in July, including its flagship site in Aberdeen. The company employs roughly 1,400 people and holds a 4% share of the UK off-trade grocery market by value.
Company Response and Future Outlook
Brewdog stated, "As with many businesses operating in a challenging economic climate and facing sustained macro headwinds, we regularly review our options with a focus on the long-term strength and sustainability of the company." The brewer added that following a year of decisive action in 2025, which focused on costs and operating efficiencies, it has appointed AlixPartners to support a structured and competitive process to evaluate the next phase of investment.
The company described this move as a "deliberate and disciplined step" aimed at strengthening the group's brand and operations, expressing confidence that it "will attract substantial interest." Brewdog was contacted for comment regarding Mr. Watt's bid, but no further details were provided at this time.
