Almost 500 people have been made redundant as part of a rescue package for troubled Ellon-based craft beer producer, BrewDog, which was in administration.
US beverage and medical cannabis company Tilray has bought the company’s UK brewing operations, brand and 11 pubs in a £33m deal, marking a significant downfall for the business, which was once valued at £2bn.
On the hospitality side, 484 staff have lost their jobs after 38 bars were not included in the deal.
BrewDog sales account for roughly 4% of the UK off‑trade beer market by value. Tilray will take control of its production facilities including the Ellon brewery – where the core range of Punk IPA, Hazy Jane, Lost Lager and Elvis Juice are made – and The Hop Hub, a national distribution centre in Motherwell. Tilray, founded in Canada and now headquartered in New York, already owns several US craft beer brands.
Administrators AlixPartners said there had been “significant interest” in the company, but no offer emerged that would have preserved BrewDog in its entirety.
AlixPartners also confirmed that no equity holders — including those who invested in the brewer’s Equity for Punks scheme — would get any return from the deal. Roughly 220,000 investors sunk around £75m into the scheme over the years, with an average outlay around £400 per person.
Eighteen franchise bars in the UK and internationally will continue to operate. The two firms are still negotiating a deal on BrewDog’s assets in the United States and Australia. The German arm — which includes a brewery and bar in Berlin — was not included in the sale and will be liquidated.
Irwin D. Simon, Chairman and Chief Executive Officer, Tilray Brands, stated, “BrewDog is one of the most iconic, mission-driven craft beer brands in the UK. 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.”
