James Watt Offers Second Best Shares to Brewdog Equity for Punks Investors

James Watt, co-founder of the now-collapsed Brewdog craft beer company, has announced plans for a new venture, Second Best, and a controversial offer to previous investors. Watt intends to allocate up to 19.3% of Second Best shares at no cost to individuals who lost money through Brewdog's "Equity for Punks" crowdfunding programme.

Brewdog, founded in 2007, once boasted a valuation exceeding $1bn, with four breweries and approximately 100 pubs globally. However, the company accrued debts surpassing £500m before its acquisition by US-based Tilray earlier this year.

The "Equity for Punks" scheme raised £75m, promising beer enthusiasts a stake in the company's success. However, when US equity firm TSG Consumer Partners acquired a 22% stake, they received "preference shares." This arrangement prioritised TSG in recouping its investment when Brewdog was sold, leaving "Equity for Punks" investors with no return.

Tilray acquired Brewdog's UK brewing operations, brand, and 11 pubs for £33m in March. This deal preserved 733 jobs but resulted in 484 redundancies and the closure of 38 bars not included in the rescue package. Administrators confirmed that "Equity for Punks" investors would receive nothing from the sale, with some reporting losses of up to £12,000.

Watt, who stepped down as Brewdog's chief executive in 2024, apologised to staff and investors, attributing the company's issues to rapid diversification. He stated on social media that he remains committed to his obligation to those who trusted him, promising that former investors will "claim the exact stake" they once held in Brewdog "for free" in Second Best, ranking equally with his own equity. Watt indicated the new company is awaiting licensing and legal consents, with an initial focus on an "alcohol adjacent concept."