Scottish craft beer giant BrewDog has initiated a sale process that could lead to the break-up of the company, according to multiple reports confirmed on Wednesday. The move comes after the brewer appointed restructuring experts AlixPartners to evaluate investment options, sparking concern among its 220,000 individual shareholders who invested through the ‘Equity for Punks’ scheme.
BrewDog confirmed the appointment of AlixPartners, stating the decision followed a year focused on cost reduction and operational efficiency. A spokesperson described the process as “a deliberate and disciplined step with a focus on strengthening the long-term future of the BrewDog brand and its operations.”
The potential sale has drawn criticism from some investors, with one telling a British newspaper that the plan indicated a disregard for the tiny investors who helped fuel the company’s growth since its founding in 2007. Many of these investors could see limited return on their average £400 investment, though some previously sold shares at a profit during earlier funding rounds.
The company, founded in 2007 by James Watt and Martin Dickie, operates approximately 60 pubs in the UK and breweries globally, including facilities in the US, Australia, and Germany. It employs around 1,400 people. Last month, BrewDog announced it would cease production of its distilling brands, raising concerns about jobs at its Ellon, Aberdeenshire facility.
The decision to focus solely on beer production follows a period of challenging economic conditions, according to the company. BrewDog raised approximately £75 million through its crowdfunding scheme, offering investors perks such as discounts and early access to new beers. The most recent crowdfunding round took place in 2021.
Sky News reported on Saturday that AlixPartners had begun contacting potential bidders, setting a quick deadline for indicative offers. The sale process is being overseen by the restructuring experts, and could result in a significant shift for the craft brewer, which has faced years of losses and internal challenges.
BrewDog’s brands include Punk IPA and Elvis Juice. As of Wednesday, the company had not commented on the potential for a complete break-up of the business, and AlixPartners declined to comment on the sales process.
