Tilray Brands Inc, involved in the beverage, cannabis, and wellness industries, has completed the acquisition of certain assets of BrewDog’s global platform.
The assets incude the global brand and related intellectual property, the UK brewing operations, and 11 strategic brewpubs in the UK and Ireland. The total consideration is £33 million.
Tilray is separately negotiating to acquire certain BrewDog assets in the United States and Australia.
“BrewDog is one of the most iconic, mission-driven craft beer brands in the UK,” said Irwin D Simon, chairman and chief executive officer at Tilray Brands. “It helped redefine modern craft beer through bold innovation, fearless creativity, and an unwavering commitment to great beer.
“What makes BrewDog truly special has always been its brewers, its brewpubs, and its passionate community of beer fans. 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.”
He added: “Tilray’s management brings operational and strategic expertise, a diversified global beverage infrastructure, and a disciplined investment approach needed to unlock BrewDog’s next phase of growth. In addition, my team and I have significant experience in the UK market where we previously built a $1.5 billion consumer packaged goods business at my prior company with beloved brands, including Ella’s Kitchen, Hartleys, Tilda, New Covent Garden, and Linda McCartney.
“With the BrewDog acquisition, our total global beverage platform is expected to grow to $500 million in annual revenue, creating one of the largest diversified craft beverage platforms globally.
“Through this expanded platform, we see significant growth opportunity for BrewDog through broader distribution and the ability to invest back into brand and innovation, while introducing Tilray’s complementary beverage brands into international markets. On a combined basis, we expect Tilray’s diversified global business to reach $1.2 billion in annualised revenue.”
BrewDog founder James Watt said he was “heartbroken” in the wake of the sale of the company, and by the redundancies within the business.
“I am heartbroken for all of the hard-working and passionate team members who have lost their jobs. I am heartbroken for all of our brilliant equity punks who did not get the return on their investment they wanted. And heartbroken to have dedicated the best 20 years of my life to something that ultimately did not have the ending we all wished for,” he said on social media.
“With the benefit of hindsight, there are also so many other things I would have done differently. At times we expanded too fast and diversified too broadly. During certain periods I did not control spend well enough across the business, and furthermore I feel that I did not respond to certain crises that we faced (and we faced many) in a way that was authentic and true to who I am. Those decisions sit with me.”
He concluded: “I still love the business. It will always feel like an intrinsic part of me. I will always be cheering it on from the sidelines, even if the next chapter is now going to be written by others.”
There has been concern across the industry for those made redundant after the sale, among then Siren Craft Brew founder Darron Anley. It was the likes of BrewDog, Thornbridge, and Summer Wine that originally piqued his interest in craft beer.
“The bar teams were always passionate, dedicated, and given a great grounding of beer knowledge, as evidenced in many CollabFest brewdays over the years,” he said. “An early favourite of ours, Ten Dollar Shake, was actually born out of a CollabFest with BrewDog Shepherd’s Bush. Some of those team members ended up as part of our team. Some are still with us, and some have gone on to more great things in the industry.”
In a statement, he added: “For anyone previously working in BrewDog bars, please note that we have vacancies at various levels across Siren RG1 and Siren Tap Yard right now. Please get in touch with Danny (danny@sirencraftbrew.com) if you’re interested.
“For all Equity Punks who have lost out as a result of this deal: we do not take lightly how bad results for crowdfunders impacts the feeling towards all breweries who have invited crowdfunding investment, or may plan to do so, including ourselves. As a gesture on our part for your support of this industry, click here for an immediate 13% webshop discount. If you’re local to us, have a free pint of flagship beer in our Siren RG1 bar when you show proof of investment up until the 13th March.”
Online retailer Beerhunter also has a deal for Equity Punks. “Beerhunter’s Pints for Punks initiative is a small gesture to recognise the beer fans who backed the craft beer movement from the beginning,” said the company. “If you invested through the Equity for Punks programme, you can claim 10% off Beerhunter, plus a free Beerhunter glass, bottle opener, and snack pack with your next order.”
