Dublin Brewdog venue survives cull as beer brand sold

Tilray Brands, which produces medicinal cannabis as well as craft beer in the US, has acquired the Brewdog brand in a £33m (€37.8m) deal.

The deal came after Brewdog fell into administration on Monday, in a move which will leave the brand’s crowdfund investors empty-handed.

It bought a number of Brewdog assets including the global brand and related intellectual property, its UK brewing operation, 10 of its pub venues across the UK and one in Dublin.

But administrators confirmed this would result in the closure of 38 Brewdog bars with 484 workers set to lose their jobs.

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

The Tilray deal will see it take control of Brewdog facilities including its brewery in Aberdeenshire, and The Hop Hub, a national distribution centre in Motherwell.

It will also preserve 733 jobs in the UK, where employees will transfer to Tilray.

The brewer, which makes craft beer such as Punk IPA and Elvis Juice, closed its pubs on Monday as it sought to confirm a takeover.

In February, consultants AlixPartners were called in to oversee a strategic review and sale process for the business.

However, it confirmed on Monday that insolvency specialists from the advisory firm were appointed as administrators following weeks of talks.

It is understood that founder James Watt was among parties to hold talks in a bid to secure a potential takeover.

Uncertainty at the business had led to questions from those who have invested in Brewdog through its “equity for punks” scheme.

The company held a number of crowdfunding initiatives up to 2021.

The administrators confirmed that any equity holders, including the “equity for punks” investors, will be left empty-handed and not receive any returns from the deal.

Clare Kennedy, a partner and managing director at AlixPartners said: “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.”

Tilray is separately negotiating deals to buy certain Brewdog assets in the US and Australia.

Irwin D Simon, chairman and chief executive of Tilray Brands, said: “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.

“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.”