BrewDog founder pours free shares into new beer firm

James Watt says up to 19.3 per cent of Second Best will be set aside for people whose BrewDog crowdfunding shares became worthless

BrewDog founder James Watt has launched a new beer company and promised to give free shares to former investors who lost money in his original brewing business.

Watt said up to 19.3 per cent of Second Best, his new venture, will be allocated to people who once backed BrewDog through its crowdfunding scheme.

The offer comes after BrewDog fell into administration, closed 38 bars with the loss of 484 jobs, and was bought by Tilray Brands for £33m.

The Aberdeenshire-founded brewer was once valued at more than $1bn, but had debts of more than £500m when the takeover was announced.

The share pledge is aimed at former BrewDog backers who invested through Equity for Punks, the company’s in-house crowdfunding scheme.

The scheme raised £75m from fans who were offered the chance to own a stake in the brewery and share in its growth.

Investors were given perks including discounts, a free birthday beer and an invitation to the company’s AGM.

Their money was used to support BrewDog’s expansion into international markets.

Those investors were later told they would not receive any return from the Tilray deal.

Watt, who founded BrewDog with Martin Dickie and stepped down as chief executive in 2024, said former Equity for Punks investors would be able to claim the same stake they once held in BrewDog, free of charge.

He said: “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.

“So today, I am introducing my plan to launch Second Best – a new beer business and an open invitation.

“If you were an Equity Punk investor, I am planning to allocate up to 19.3% of Second Best for you. 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. You’ll own it. I’ll fund it. And I’ll dedicate myself to building it.

“You’re not shareholders this time. You’re Second Founders. We are going to start small, build from the ground up and focus on making the best versions of we can of our favourite beer styles.

“I am determined to build a world-class beer business that we all collectively own.”

Watt said there was no launch date yet for Second Best.

He also said he would reveal an “alcohol adjacent concept” soon.

He added: “If we get this right, then the second beer business that we build together might just be the best one.”

Watt and Dickie are reported to have made £100m between them by cashing out shares in 2017, when private equity group TSG bought 22 per cent of BrewDog.

TSG held preference shares, meaning it was first in line to be paid when the company was sold.

Dickie later left BrewDog for personal reasons.

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_{Main image: Jeremy Segrott/CC BY 2.0 via Flickr / Wikimedia Commons}