Brewdog bought by US cannabis giant in £33m deal
Craft beer giant Brewdog has been sold to American cannabis and brewing group Tilray Brands for £33m after co-founder James Watt reportedly walked away from a comeback deal.
Tilray Brands, a pharma firm which sells cannabis and alcoholic lifestyle products, has agreed a deal to acquire most of the brand’s assets.
The announcement of a sale last month marked the latest chapter in a significant downfall for the independent brewer, which had been valued as high as £2bn but was recently forced to close several of its bars.
Scottish businessman James Watt, who co-founded the firm in 2007, was reportedly preparing to pile £10m of his own money into a bid before he exited the running on Sunday.
Tilray has agreed to buy Brewdog’s global brand, its UK brewing operations and eleven of its UK-based bars.
The bars bought in the deal include locations in Birmingham, Canary Wharf, Dublin, and the taproom in Ellon, Aberdeenshire, where Brewdog’s primary brewing estate is located.
Tilray believes the acquisition will add $200m annual net revenue to its balance sheet.
Irwin D. Simon, chief executive of Tilray, 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.”
Bars shut while sale goes through
Brewdog shut all of its bars for the day on Monday as it held a series of all-hands meetings to discuss the sale.
Chief executive James Taylor told staff in an internal email that the bars were being shut to allow employees to attend the meetings and to comply with licensing issues.
He wrote: “We appreciate this is an unsettling time for everyone, and we want to ensure that all colleagues have the opportunity to hear directly from us about what happens next.”
Rumours had been swirling around the sale of the Brewdog brand and its highly valuable assets, prompting HSBC to secure the firm’s debts against its Aberdeenshire brewing estate, giving the bank the right to seize the property.
Hangover from ‘punk’ investor model
The announcement of Brewdog’s sale last month was met with fury by some of the firm’s around 200,000 small-scale shareholders, who had invested in the company when it was an exciting start-up but look unlikely to make anything back.
Ross Brown, a professor at the University of St Andrews’ school of management, told City PM last week: “Once a brand famous for edgy, zany beers and off-the-wall products it now very much mirrors the bland and corporate incumbents it was meant to challenge.”
Brewdog has not commented on this latest development.
The brewers previously said: “As with many businesses operating in a challenging economic climate and facing sustained macro headwinds, we regularly review our options with a focus on the long-term strength and sustainability of the company.
“Following a year of decisive action in 2025, which saw a focus on costs and operating efficiencies, we have appointed Alixpartners to support a structured and competitive process to evaluate the next phase of investment for the business. This is a deliberate and disciplined step with a focus on strengthening the long-term future of the Brewdog brand and its operations.”