THE founder of BrewDog has sparked criticism after launching a new beer company and pledging to give free shares to people who lost money in his original venture.
James Watt, who co-founded the Scottish beer firm in 2007 alongside Martin Dickie, announced he was starting a new company on social media, called "Second Best".
BrewDog collapsed into administration earlier this year and was bought by an American firm in a £33 million deal which saw hundreds of jobs lost, and 38 pubs closed across the UK.
At its peak, the company had a valuation exceeding $1 billion, but had more than £500m in debts when it was taken over.
Watt has vowed to allocate nearly 20% of shares in his new company to people who lost money after investing in Brewdog's Equity for Punks scheme.
The scheme promised beer enthusiasts a chance to "own a slice of the brewery" and share in its success, in return for perks such as discounts on beer purchases, free birthday beer and invitations to its "Annual General Mayhem" AGM meeting with live music and beer tastings.
BBC Scotland News reports that the scheme is said to have raised £75m, ultimately helping BrewDog to expand into the international market.
Yet the company went on to sort equity from elsewhere, and when US equity firm TSG Consumer Partners acquired a 22% stake in BrewDog, they were given "preference shares".
This meant that when BrewDog was sold, TSG was given priority to get its investment back along with any return which was owed.
After BrewDog was taken over by Tilray, administrators stressed that those who invested in the Equity for Punks scheme would not get any return from the deal.
Announcing the launch of Second Best, Watt – who quit as BrewDog's chief executive in 2024 – 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."
He says he plans to allocate up to 19.3% of the new company to former Equity for Punk investors, alleging that they will be able to "claim the exact stake" they once held in BrewDog "for free".
"No catches, no cash required, and your equity in Second Best will always rank alongside my own," he added.
"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."
Watt said the company does not have an official launch date because it is still seeking relevant licenses and legal consents.
He added that this "may take some time", so he hoped to launch an "alcohol adjacent concept" to begin with.
Watt's shares pledge has drawn criticism from those who originally invested in the Equity for Punks scheme, telling BBC Scotland News they were "cynical" and hoped it meant they were "not going away with nothing".
Gareth Fitzgerald, who spent £1000 on BrewDog shares, told the outlet he would sign up for the new scheme but was doubtful about whether it would pay off.
He said: "I won't be buying any of his products, but it would be silly not to sign up.
"19.3% sounds good, but 19.3% of nothing is nothing."
Meanwhile, Pete Berryman – who invested around £3000 in Equity for Punks on behalf of him and his sons – said: "It's a nice idea that potentially we're not going away with nothing, I'm just wondering what strings are attached."
Berryman said he would follow up on the proposal despite being "very cynical" and said he "will be checking the small print".
