BrewDog has suffered another major setback after figures revealed its beers have been removed from almost 2,000 pubs across Britain, in a fresh blow to the once high-flying craft brewer.
Confidential industry data shows that BrewDog’s draught beers have disappeared from around 1,860 pubs over the last two years – cutting its UK distribution by more than a third. Its flagship Punk IPA has borne the brunt, with distribution slashed by more than half, having been dropped from 1,980 pubs in the period.
One pub industry insider told The Times: “BrewDog is losing taps in the [pub and bar trade] like you wouldn’t believe,” with rival brands such as Camden Town and Beavertown moving into its place on the bar.
The losses have come mainly from pub chains and large operators, depriving BrewDog of vital income at the same time as it struggles to repair its financial position and reputation. Last month, the company was forced to shutter 10 of its own branded bars across the UK, including its flagship site in Aberdeen, after declaring them commercially unviable.
The downturn underlines the challenge facing chief executive James Taylor, who took over last year following a turbulent period marked by heavy losses and allegations of a “toxic” workplace culture. The company has reported losses of £59m in 2023 and £30.5m in 2022, with Taylor conceding it will remain in the red this year.
Industry figures suggest BrewDog’s reliance on JD Wetherspoon is now critical. The chain’s 794 pubs account for a large share of its remaining UK distribution. “If they ever lost the JD Wetherspoon deal, then that’s Punk IPA done as a [pub trade] product,” one source warned.
BrewDog’s chief operating officer, Lauren Caroll, said the contraction was part of a wider trend: “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 independents.”
Founded in 2007 by James Watt and Martin Dickie, BrewDog built its reputation on high-octane marketing stunts and the runaway success of hoppy beers like Punk IPA. But recent years have been overshadowed by damaging controversies, from allegations of a “culture of fear” to criticism over a 2017 deal with US private equity firm TSG Consumer Partners.
That deal requires BrewDog to deliver an 18 per cent compounding return on TSG’s shares, creating growing pressure on the brewer’s finances and sparking concern among its thousands of small “Equity Punk” investors.
Taylor, a former fashion executive who succeeded Watt and then James Arrow as chief executive, has overseen a major rebrand of the beer range in an attempt to restore momentum. But with shrinking pub distribution and sustained losses, BrewDog faces a fight to reclaim its place at the bar.