BrewDog’s beers have been axed by almost 2,000 pubs across the UK in a major blow to the struggling brewer.
According to pub industry data revealed by the Telegraph, the company's selection of draught beers has vanished from about 1,860 pubs over the past two years, reducing its distribution in the UK by more than a third.
These numbers also reveal that BrewDog's most popular beer, Punk IPA, has lost the most money after being taken out of 1,980 bars within the same time frame. This represents a 52.3 per cent drop in distribution as bars reduce their selection and customers stop buying the brand.
The majority of pubs that are discontinuing BrewDog beers are owned by big pub corporations and are part of chains, which means the brewer loses a significant source of income as it tries to turn things around.
Why are pubs banning the beers?
The company reported large pre-tax losses for the fourth consecutive year.
Even though it lost £12.5 million in 2020, £9.4 million in 2021, and £30.5 million in 2022, the losses from the previous year exceeded the total losses from those three years.
Every independent brewer is impacted, according to BrewDog, which says it foresaw the drop.
The industry insider claims that the cutbacks could make BrewDog more dependent on the 794 JD Wetherspoon bars, which make up a significant portion of its remaining distribution.
They declared: “If they ever lost the JD Wetherspoon deal, then that’s Punk IPA done as a [pub trade] product.”
While Lauren Caroll, BrewDog’s chief operating officer, said: “Independent brewers across the board have felt the squeeze from the economic pressures hitting the pub trade. With costs rising and consumers watching their spend, pub groups have been narrowing their ranges, and brewery-owned pubs are putting more emphasis on their own brands.
“It’s not just us – every independent brewer has been affected. We saw the trend coming, which is why we’ve shifted focus to high-impact channels like festivals, stadiums, and independent [pubs].”
What is going on with the business?
BrewDog is currently facing significant challenges, including declining bar sales, increased competition, and substantial financial losses. The company reported losses of £30.5 million in 2022 and £59 million in 2023.
The brewery has also been subject to several controversies over the years.
About 61 former employees signed a paper in 2021 accusing the organisation of having a "culture of fear" and another 45 were reportedly in favour of its aims but did not want their names to be published out of concern for retaliation.
The corporation was accused in the letter of being “built on a cult of personality” and of using “lies, hypocrisy, and deceit” as strategies, including making exaggerated claims in its notorious public relations campaigns.
They claimed that managers did little to address the difficulties within the company and that employees were left with mental health problems.
Former employees specifically targeted co-founder James Watt for criticism, claiming that he was the cause of the “toxic” attitudes among staff members.
The co-founder expressed regret and pledged to act in response to the disclosures. He called the open letter “upsetting, but so important” in a statement at the time and that his focus was to “listen, learn and act.”
Additionally, the brand dropped out of the real living wage scheme in 2024.
Employees were informed at the time that BrewDog made the “hard decision” to withdraw from the voluntary program in order to return the company “to profitability and the financial stability that is needed.”
According to the Unite union, the “outrageous” move was taken “during the most acute cost of living crisis in a generation.”
Which BrewDog pubs have closed this year?
In July, the company shared 10 sites that will be closing across the UK:
The sites at Shepherds Bush, Shoreditch, and Camden have now officially closed. Being the first BrewDog location to operate in London, the Camden location was very notable.
A statement from CEO James Taylor on the Shareholders Forum at the time read: “It has simply not been possible to find a formula to make these bars viable due to their size, location and other limiting factors.
“Keeping them open would put pressure on the wider business, making it harder to invest where we know we can grow.
