US company Tilray will pay £33m ($44m) for the selection of assets: a cut-price deal for a company once valued in billions. Separate negotiations are under way for Tilray to acquire certain BrewDog assets in the US and Australia.
Other parts of the BrewDog business, however, will be shuttered: including the immediate closure of 38 brewpubs across the UK and Ireland with the loss of 484 jobs.
BrewDog was put up for sale last month: but no offer was received that would have preserved BrewDog in its entirety, says AlixPartners, which was appointed as administrators this morning.
For Tilray, meanwhile, the acquisition is a huge opportunity to take its growing US craft beer business global.
Swift sale
Just two weeks ago, BrewDog announced it was exploring a sale of the business: citing a ‘challenging economic climate’.
BrewDog - which was founded in 2007 and grew quickly thanks to its maverick branding and irreverent marketing - was once the hero of the UK craft beer movement.
Having successfully taken its business across the UK and then global, with a collection of brews and brewpubs, BrewDog was once estimated as having a £2bn valuation. But it has posted losses for the last five years and been subject to a series of bad press, while it’s had to pull back on once well-publicized initiatives around sustainability and carbon negativity.
With BrewDog already having exhausted all cost saving measures in its power, New York headquartered company Tilray has made a deal.
The company launched in 2013 as a cannabis business: but it’s since diversified into a ‘lifestyle and consumer packaged goods’ company with brands across beverages, cannabis and wellness industries.
Over the last few years its been building up a portfolio of American craft beer brands: including Revolver Brewing and Atwater Brewery (from Molson Coors in 2024) and 10 Barrel Brewing Company and Blue Point Brewing Company (from Anheuser-Busch in 2023).
Other brands include non-alcoholic hemp cocktail Happy Flower and Herb & Bloom (both containing 5mg THC).
And Irwin D. Simon, CEO and chairman at Tilray Brands, says the company can return BrewDog to growth.
“What makes BrewDog truly special has always been its brewers, its brewpubs and its passionate community of beer fans,” he said.
“As we begin a new chapter for this great brand, our priority is to refocus BrewDog on the craft beer excellence that made it beloved in the first place and strategically invest to return the operations to profitable growth.
“BrewDog’s future is bright, and we are committed to ensuring the brand continues to lead and inspire the global craft beer movement.”
The acquisition of BrewDog, however, will create a second significant growth opportunity for Tilray: who will use BrewDog’s infrastructure to introduce its existing brands to new international markets (a ‘strategic priority and a natural next phase of growth’ for the company).
BrewDog is the leading independent brewer in the UK with a 4% market share in UK grocery market by value, and five of the top eight UK craft brands (Punk, Elvis Juice, Hazy Jane, Wingman, Lost).
Tilray expects its total global beverage portfolio reach around $500m in annual revenue as a result of the acquisition.
BrewDog break-up
- Tilray will acquire 11 BrewDog brewpubs in Birmingham, Canary Wharf, Dogtap Ellon, Dublin, Edinburgh DogHouse, Lothian Road, Manchester, Paddington, Seven Dials, Tower Hill, and Waterloo. The remaining 38 bars will close 'immediately' with the loss of 484 jobs. All BrewDog pubs in the UK were closed on Monday as the sale reached completion.
- In the UK, 733 jobs will be preserved across head office, brewing and bar divisions. Alongside the 11 brewpubs, Tilray acquires BrewDog's Ellon brewery and The Hop Hub, a national distribution centre.
- BrewDog's meteoric growth in its early days was funded by an early crowd-funding style model: Equity for Punks. Around 220,000 investors contributed £75m in crowdfunding across seven rounds. However, joint administrators AlixPartners say there will be no return to any equity holders, including Equity for Punks.
- Headquartered in Scotland, BrewDog was built up as the leading UK craft beer brand. The transfer of brand ownership to an American group will be a disappointment to loyal fans.
- BrewDog has international operations: including breweries in the US and Australia and 72 brewpubs across the world. Tilray is negotiating to acquire 'certain assets' in the US and Australia: but there is no update on the future of European or Asian sites.
Tilray’s management has the right experience to realize this potential, continued Simon: referencing his experience building up Hain Celestial in the UK.
“My team and I have significant experience in the UK market where we previously built an ~$1.5bn consumer packaged goods business at my prior company with beloved brands, including Ella’s Kitchen, Hartleys, Tilda, New Covent Garden and Linda McCartney,” said Simon.