Brewdog sold for £33M, with over 480 to lose jobs

Brewdog has been bought by the US pharma and food and drink company Tilray Brands - a move which will see hundreds lose their jobs.

Founded by James Watt and Martin Dickie in 2007, Brewdog has become one of the best-selling beer brands in the UK. However, in recent times it has faced significant headwinds, with jobs cuts announced last year after it reported a £37 million loss.

The acquisition of the drinks firm by Tilray forms part of a strategy to grow the US firm’s UK footprint and enter new international markets. The deal includes the global brand and related intellectual property, the UK brewing operations, and 11 of Brewdog’s ‘strategic brewpubs’ in the UK and Ireland.

The 11 pubs included in the deal are: Birmingham, Canary Wharf, Dogtap Ellon, Dublin, Edinburgh DogHouse, Lothian Road, Manchester, Paddington, Seven Dials, Tower Hill, and Waterloo.

Tilray expects the acquired brewing and related operating assets to generate annual net revenue of around $200 million and adjusted EBITDA of up to $8 million.

It adds that it does not anticipate a ‘meaningful’ EBITDA contribution in the fourth quarter of fiscal 2026; and expects the acquired business to become cash flow positive beginning in fiscal 2027 as integration initiatives and operational efficiencies are realised.

The move will see 733 employees working across Brewdog’s head office, brewing and bar divisions retain their jobs. However, as many as 38 bars will close with immediate effect, pushing a total of 484 people into redundancy.

Joint administrators AlixPartners has also confirmed there will be no return to any equity holders, including those that took part in BrewDog’s Equity for Punks crowdfunder.

“As one would expect over the past two weeks, we have received significant interest in the BrewDog business from prospective buyers across both the trade and investment communities. In Tilray, we have secured a purchaser with a passion for craft brewing who will be an excellent custodian and sponsor of the business in the months and years ahead,” commented Clare Kennedy, a partner and managing director at AlixPartners.

“Having done so, our priority now is to support, to the fullest extent possible, those people whose roles have been made redundant, and we would ask operators within the UK leisure sector who are in a position to assist to contact us at any time.”

Tilray’s strategy

Tilray Brands focuses on the production and distribution of cannabis and hemp foods, alongside craft beer, spirits, beverages.

It says the purchase of Brewdog offers a ‘significant opportunity’ for it to grow its international footprint by providing scaled brewing capacity outside the States, alongside an established international distribution network, and a premier brewpub and hospitality infrastructure across several geographies.

“BrewDog is one of the most iconic, mission-driven craft beer brands in the UK. It helped redefine modern craft beer through bold innovation, fearless creativity and an unwavering commitment to great beer. What makes BrewDog truly special has always been its brewers, its brewpubs and its passionate community of beer fans,” said Irwin D. Simon, chairman and CEO at Tilray Brands.

“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.”

He continued: “Tilray’s management brings operational and strategic expertise, a diversified global beverage infrastructure and a disciplined investment approach needed to unlock BrewDog’s next phase of growth. In addition, my team and I have significant experience in the UK market where we previously built an ~ $1.5 billion consumer packaged goods business at my prior company with beloved brands, including Ella’s Kitchen, Hartleys, Tilda, New Covent Garden and Linda McCartney.

“With the BrewDog acquisition, our total global beverage platform is expected to grow to ~$500 million in annual revenue, creating one of the largest diversified craft beverage platforms globally. Through this expanded platform, we see significant growth opportunity for BrewDog through broader distribution and the ability to invest back into brand and innovation, while introducing Tilray’s complementary beverage brands into international markets. On a combined basis, we expect Tilray’s diversified global business to reach ~$1.2 billion in annualised revenue.”

Tilray is also in separate talks on a deal which would see it acquire Brewdog assets in the US and Australia. This is expected to be finalised and closed in about 30 days.

BrewDog’s 18 franchise bars in the UK and internationally continue to operate.