Brewdog founder James Watt launches ‘equity punk’ comeback
Brewdog founder James Watt has launched a comeback after the craft beer firm he co-founded collapsed earlier this year.
Watt said on Friday he will launch Second Best, a new crowdfunded beer venture, in a bid to win back the “equity punks” who were left empty handed in Brewdog’s sale.
The divisive entrepreneur said he feels an “obligation” to the investors in his original beer start-up and is committed to “make good” this time around.
The new brand will focus on canned beer – initially offering two pale ales and a lager – rather than attempting to replicate Brewdog’s vast empire of pubs and bars.
Watt wrote on LinkedIn: “Thousands of people trusted me to build a brilliant beer business and create value for them. It was an obligation I took very seriously. And I, for one, am not done with that obligation.
“I am determined to make good on my promise of creating value for you and building a world class beer business that we all collectively own.”
Watt makes amends with equity punks
The beer businessman was left “heartbroken” by the collapse of Brewdog, which saw the firm’s UK operations sold to a US cannabis firm for just £33m in March.
The craft beer firm had once commanded a £2bn valuation and its fast growth was driven by thousands of “equity punk” investors who contributed £75m across seven investment rounds.
These investors got nothing out of Brewdog’s eventual sale, and Watt had said he was “sorry that I was not able to repay the faith you bestowed in me”.
But Watt is hoping to regain the favour of these “punk” investors with his new venture, which includes a 19.3 per cent chunk of ringfenced equity for former stakeholders in Brewdog.
“You can claim the exact stake you once held in BrewDog, for free. No catches, no cash required, and your equity in Second Best will always rank alongside my own,” Watt said on Friday.
The entrepreneur is self-funding the new business and has not yet set a date for its launch.
While the new venture is focussed on canned beer, Watt told the Financial Times he could yet launch a small number of beer-focussed pubs.
Brewdog downfall
Watt co-founded Brewdog with school friend Martin Dickie in 2007, and its sale to Tilray Brands marked a stunning fall from grace for a brand which had become dominant in the UK’s craft beer market.
Watt and his firm had been mired by allegations of a “culture of fear” and inappropriate behaviour – claims he firmly denies.
The businessman stepped down as chief executive in 2024, and Dickie left the company a year later.
Watt had reportedly been putting together a rescue bid for Brewdog before it was sold to Tilray, which would have included millions of his own money and backing from controversial private equity firm Modella Capital.
Brewdog’s new owner declared last month it has plans to restore the beer brand to its former glory and notch a $1bn valuation.