James Watt, the founder of BrewDog who sold the debt-laden brewer earlier this year, faces complaints to the UK's data privacy watchdog over his surprise bid to buy the company back, the Guardian has learned. Several former shareholders who received emails from Watt have contacted the Information Commissioner's Office (ICO), questioning how he obtained their contact details.
Background of the Sale and Buy-Back Bid
In March, BrewDog's brand, intellectual property, UK breweries and 11 bars were sold to US cannabis and drinks firm Tilray for £33m. The deal rendered shares of more than 200,000 crowdfunding investors worthless. On Wednesday, Watt unexpectedly announced a plan to regain control via a new venture called Second Best, with support from 43,000 of those investors, labelled "equity punks". The proposal involved contacting thousands of shareholders to offer them the "exact same stake in Second Best that you once held in BrewDog, for free".
Data Privacy Concerns
Several sources who received the email expressed confusion about how Watt obtained their contact details, raising concerns about a potential breach of the General Data Protection Regulation (GDPR). Marc Knox, a former equity punk, said: "I got the email last Sunday and I kind of laughed. I wasn’t thinking about complaining but I talked to a friend, looked online and saw there were lots of people saying the same thing: ‘How has this joker got my details?’"
Watt denied any wrongdoing, stating: "A communication was sent to my fellow shareholders in BrewDog following legal advice, using lawfully obtained data, and in connection with their legitimate interests as shareholders." He did not explain how the data was obtained. The Guardian understands that neither Tilray nor AlixPartners, the administrator of the remainder of BrewDog, provided such information.
ICO Investigation
The ICO, which regulates data privacy and can impose fines for GDPR breaches, is assessing the complaints. An ICO spokesperson said: "We are aware of an incident involving BrewDog and we are assessing the information provided." Ravi Naik, legal director at data protection specialist AWO, commented: "I can understand why the individuals have complained to the ICO. There seem to be questions to answer and the ICO should explain if they plan to take action on these complaints. Key questions are how the people who received the email were selected and whether the email campaign was compliant with the law."
Tilray's Response
A spokesperson for Tilray confirmed that the company "did not acquire Equity for Punks shareholder data as part of its acquisition of the BrewDog brand and assets; that records system remains under the control of BrewDog plc (in administration)." They added: "For the avoidance of doubt, Tilray Brands (trading as BrewDog) and its current management team have no involvement in, affiliation with, or responsibility for James Watt’s business activities, including Second Best. Tilray Brands did not authorise, facilitate, or participate in the communications reportedly sent to former Equity for Punks investors and did not authorise the use of any acquired data for such purposes. We take data privacy with the utmost seriousness and can categorically confirm that no data held by Tilray Brands has been shared with external entities or former directors. All communications with our customer base are conducted in strict compliance with GDPR."
The ICO said it does not comment on individual cases but all complaints are considered in line with its standard process. The Guardian has approached AlixPartners for comment.
