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BrewDog

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BrewDog is a multinational brewery and pub chain based in Ellon, Aberdeenshire, Scotland. With production of over 80 million litres,[1] BrewDog is the seventh largest beer brand in Britain, and the company claims to be the "#1 Craft Brewer in Europe".[3][4] It was founded in 2007 by James Watt and Martin Dickie, who together own 17% of the company.[2]

BrewDog plc
TypePublic limited company
LocationEllon, Aberdeenshire, Scotland, UK
Opened2007 (2007)
Annual production volume800,180 hectolitres (681,890 US bbl) (2020)[1]
Owned byJames Watt (9%), Martin Dickie (8%), TSG Consumer Partners (70%), other Board members (4%), members of the public (9%)[2]
Websitewww.brewdog.com Edit this at Wikidata

The company has been involved in a number of controversies. These have focused on its treatment of employees, its use of unethical business practices, and hypocrisy with regard to its anti-establishment branding.[5][6][7]

History

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BrewDog's Hardcore IPA

BrewDog was founded in Fraserburgh in 2007 by James Watt and Martin Dickie.[8] Dickie had previously worked at Thornbridge Brewery, where he helped develop their flagship beer Jaipur.[9]

In 2009, BrewDog purchased its first bar, in nearby Aberdeen.[10] At the end of 2018, the company and its franchisees operated 78 bars worldwide.[11]

In 2011, BrewDog was described as "one of the prime movers"[12] behind the campaign which changed the law in 2011 to allow new beer measures in Britain.[13]

2011 also saw the company offered crowdfunding shares totaling £2 million, the equivalent of 8% of the capital of the company. The shares were sold at £23.75 and accompanied several benefits such as discounts in its bars and online purchase of its beers, and the opportunity to attend its annual shareholders' meeting.[14]

The main brewing moved from Fraserburgh to nearby Ellon in 2012. In 2014, the company ended operations in Fraserburgh.[15] In January 2013, BrewDog opened its new 5+1⁄2-acre (2.2-hectare) brewery at a cost of £7.8 million just outside of Ellon.[16] The brewery was designed to minimise carbon emissions with the use of treatment plants, Biogas technology and since 2021, an anaerobic digestion plant.[17][18] In 2016, the Ellon distillery was expanded at a cost of £5 million including the addition of a new 300 hectoliter (HL) brew house.[19][20]

In March 2015, BrewDog was awarded £1.5m in Regional Selective Assistance.[21]

In 2016, BrewDog open-sourced its beer recipes to the public, making them a form of Free Beer.[22][23] In 2017, Private equity firm TSG Consumer Partners acquired a 22% stake in the company for approximately £213 million.[24] In 2018, BrewDog announced its plan to build a $30 million brewery and tap room on an 11,000 square metres (120,000 sq ft) greenfield site in the Metroplex complex at Murarrie, in Brisbane, Australia.[25]

In 2019, the company announced a new distillery in the United States[26] and opened its first bar in Ireland, at the Capital Dock development in the upmarket Grand Canal Dock area of Dublin.[27] In 2020, BrewDog opened its first alcohol-free bar in London (closed during 2022).[28] In 2021, BrewDog launched a new visual identity.[29] In February 2023, BrewDog launched a partnership with Budweiser China and the expansion to that country's market.[30] After a series of sexual harassment and unethical behaviour claims made by company staff, CEO James Watt announced that he would step down as chief executive in 2024.[3]

Products

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BrewDog produces various types of ales and lagers, and several kinds of spirits.

Controversies

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BrewDog's provocative marketing has been a key aspect of its business, and has gained it substantial international coverage.[5]

 
BrewDog bar in Camden

2007–2009

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In 2008, BrewDog was accused of aggressive marketing by UK drinks industry watchdog the Portman Group and risked having its products withdrawn from British shops.[31] BrewDog denied these allegations and countered that Portman was impeding the development of smaller brewing companies.[32] In December 2008, after an eight-month long dispute and a preliminary adjudication, which had ruled against the company, BrewDog was cleared of all breaches of Portman's code of practice and permitted to continue marketing its products without making any changes to the packaging.[33] In response, BrewDog introduced Speedball, a reference to a drug cocktail, saying "we thought we would give them something worth banning us for". Speedball was promptly banned by Portman[34] before being renamed as Dogma.[35] BrewDog has produced progressively stronger beers and has claimed to have made the 'strongest beer ever brewed' more than once.

In 2009, its Tokyo* brew, with 18.2% alcohol by volume (ABV), caused controversy when Portman criticised the availability of a beer of that strength in 330 ml bottles with traditional crown caps. BrewDog also launched a beer called Tactical Nuclear Penguin, with 32% ABV, which was claimed to be the strongest beer ever made.[36]

2010–2019

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Squirrel container of BrewDog's The End of History beer (55% ABV)

In 2010, BrewDog announced Sink The Bismarck, an apparent 41% ABV[37][38] to reclaim the world's strongest beer title from German brewery Schorschbräu, which had produced a 40% ABV version of its Schorschbock.[citation needed] Also in 2010, BrewDog produced a 55% ABV freeze-distilled beer called The End of History, with the bottles packaged in small stuffed animals, priced at £500 and £700 each.[39][40][41] Only 12 bottles were produced; 11 for retail sale, with the other one going to video blog BeerTapTV.[42][43] BrewDog claimed that this set new records not only for alcoholic strength in a beer, but also for price. Advocates for Animals called the gimmick "perverse".[39]

The title "strongest beer of the world" was then reclaimed by Georg Tscheuschner from Schorschbräu, whose Schorschbock 57 had an ABV of 57.5%.[44] The title for world's strongest beer has since been claimed again by Brewmeister's Snake Venom at a reputed 67.5%, although independent testing has yet[when?] to be published to confirm the ABV.[45]

In 2014, Portman claimed BrewDog was in breach of Portman's Code of Practice "for encouraging both anti-social behaviour and rapid drinking" through the labelling of the Dead Pony Club IPA, which it claimed placed "undue emphasis on the strength and intoxicating effect of the alcohol in the product".[46]

In September 2015, a petition was launched and signed by 8000 people in response to a BrewDog advert, stating: "They claim to be ethical. Yet in their new crowdsourcing video they mock homeless people, trans women and sex workers".[47][48] In November of the same year, the company went on to launch a "non-binary, transgender beer"[49] and faced further criticism from the charity Stonewall.[50]

In March 2017, BrewDog threatened legal action against an independent pub based in Birmingham called Lone Wolf, a trademark owned by BrewDog.[51] A day later, after the story was reported in The Guardian, BrewDog director Watt tweeted that the company had no issue with the bar using the name, despite it having already rebranded as The Wolf.[52] However, Brewdog released a statement at a later date saying "Hands up, we made a mistake in how we acted", blaming "trigger happy lawyers". The next day, further controversy arose over an alleged previous threat of legal action from BrewDog against a bar calling itself Draft Punk.[53] In response to this, a spoof cease and desist letter, asking BrewDog to stop using the term "punk", was signed by over 200 punk bands, labels and promoters from around the world.[54] BrewDog's Watt later released a blog statement citing the allegation as inaccurate, calling it an example of "opportunistic lies combined with inaccurate journalism", noting that BrewDog does also own a trademark on the word 'punk' related to beer.[55]

In 2017 and 2020, BrewDog lost legal and trademark battles to Elvis Presley's estate and Elvis Presley Enterprises over their (BrewDog's) IPA product "Elvis Juice" and BrewDog's attempt to trademark "Elvis Juice" and "BrewDog's Elvis Juice".[56][57] They won an appeal to use "BrewDog Elvis Juice" in the United Kingdom but then lost an appeal to use that name in the European Union.[57][58]

 
Brewdog's Pink IPA

In March 2018, BrewDog produced Pink IPA, a limited edition bottling of Punk IPA brought out to coincide with International Women's Day and intended to highlight the gender pay gap. The launch of Pink IPA was met with criticism of the beer's marketing campaign.[59] On the day following the launch of Pink IPA, BrewDog published an article responding to the criticisms and emphasising the intended satirical nature of the product. Later that year, the Portman Group ruled that the labelling for Pink IPA breached Portman's Code of Conduct, upholding complaints from members of the public that the phrase "Beer for Girls", used on the packaging, was likely to appeal to under-18s.[60] In a statement responding to the ruling, BrewDog dismissed the Portman Group's findings, saying "We're as bothered about this Portman Group ruling as we are any other – that is, not at all."[61] In 2020, BrewDog CEO Watt placed Pink IPA at the top of a list of his "Biggest Mistakes", acknowledging that "Despite the good intentions, our execution was terrible. ... The backlash was justified."[62]

In May 2019, BrewDog was accused of stealing marketing concepts from public relations firm Manifest London, and from job applicants using fake interviews and other deceptive practices.[63]

2020–present

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BrewDog Outpost Dublin

In June 2021, a group of over 100 former BrewDog employees published an open letter criticising the firm's business practices and the treatment of its employees. The letter cited a "culture of fear" and claimed the company was "built on a cult of personality", with founder and CEO Watt singled out for particular criticism.[64][65][66][67][68]

Also in June 2021, BrewDog came under investigation by the Advertising Standards Authority (ASA) concerning the company's claim in three of 50 promotional tweets that ten 24 carat solid gold beer cans, randomly hidden in cases of beer, were worth £15,000. Some winners had their cans independently valued, uncovering that their cans were not solid gold as advertised in those tweets and were indeed gold-plated brass, valued at the lower price of £500.[69][70] Watt contacted the 50 winners to offer a full cash amount, subsequently buying 40 of the cans out of his own money at a cost of £470,000.[71]

In July 2021, a BrewDog advert was banned by the ASA for "misleading claims". An Instagram post for its Clean & Press Hard Seltzer stated, "Due to advertising regulations we cannot claim this drink is healthy", but continued with a reference to a low calorie claim. The ASA challenged the nutritional benefits of the drink claimed in the advert.[72]

In January 2022, an episode of BBC One investigative series Disclosure interviewed "former employees who say they found it a miserable and uncomfortable experience", and "some loyal customers [who] now say they regret investing their savings in BrewDog".[7] After the scandal, they lost their B Corporation certification.[73] The Guardian later revealed that Watt had hired private investigators to obtain information on people he believed were propagating a smear campaign against him.[74] In February 2024, Ofcom dismissed BrewDog's claim that the BBC's documentary had unfairly targetted the company with a "hatchet job".[75]

In November 2022, BrewDog announced an "anti-sponsorship" of the 2022 FIFA World Cup, criticising Qatar for their mistreatment of migrant workers and criminalisation of homosexuality. The company also stated that profits raised from the sale of Lost Lager during the duration of the tournament would be donated to help fight human rights abuses. The Unite union accused BrewDog of hypocrisy, highlighting the company's own controversies regarding its treatment of employees. It was also pointed out by multiple news outlets that despite this stance, BrewDog was still planning to show the event in their bars and that their beer was still being sold in Qatar.[76][77][6]

In January 2024, BrewDog announced that it would no longer pay the "real living wage" from April 2024.[78]

In March 2024, staff from BrewDog's flagship Waterloo bar signed an open letter to the company stating their working conditions were unacceptable and that little had changed since BrewDog's commitment to improve was made in 2021.[79]

TV series

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James Watt and Martin Dickie had a show in 2013 on American television channel Esquire Network which lasted three seasons.[80] After the channel closed, BrewDog launched BrewDog Network, which features a selection of original content.[81] The BrewDog Network launch PR campaign centred around beer.porn - a parody of a well-known pornography website - featuring content which drew further criticism of sexism and misogyny.[82]

Awards

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Product

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  • 2007: World's Best Strong Pale Ale (Sub Category Winner) for The Physics by the World Beer Awards.[83]
  • 2007: World's Best Imperial Stout (Style Trophy Winner) for Rip Tide by the World Beer Awards.[83]
  • 2008: Gold medal at the 2008 World Beer Cup in the Wood and Barrel-aged Strong Beer Category for Paradox Grain.[84]
  • 2010: Gold at the 2010 World Beer Cup in the Imperial IPA category for Hardcore IPA.[85]

Corporate

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  • 2008: Prince's Scottish Youth Business Trust Young Entrepreneur of the Year award.[86]
  • 2008: Tenon Entrepreneur of the Year Award at the National Business Awards for Scotland.[87]
  • 2018: Two-star accreditation from Best Companies.
  • 2019: One-star accreditation with a BCI score of 666.2.[88]

References

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  1. ^ a b Annual Report & Accounts for the Year Ending 2020. BrewDog plc. 14 May 2021. p. 52.
  2. ^ a b "Equity for Punks Investment Prospectus". pp. 32–35. Archived from the original on 17 June 2019. Retrieved 9 June 2019.
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