Brewdog Sold for £33M, Resulting in Job Losses for Over 480 Employees

Since its founding by James Watt and Martin Dickie in 2007, Brewdog has emerged as one of the top-selling beer brands in the UK. However, in recent times, it has faced considerable challenges, with job cuts announced last year after reporting a £37 million loss.

Tilray’s acquisition aligns with its strategy to expand its presence in the UK and enter emerging international markets. The deal includes Brewdog’s global brand and related intellectual property, its UK brewing operations, as well as 11 strategic brewpubs in the UK and Ireland.

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

Tilray anticipates that the acquired brewing assets will generate annual net revenues of approximately $200 million, with adjusted EBITDA reaching as high as $8 million.

Furthermore, Tilray does not expect a ‘meaningful’ EBITDA contribution in the fourth quarter of fiscal 2026. However, it forecasts that the acquired business will achieve positive cash flow starting in fiscal 2027, as operational efficiencies and integration initiatives take effect.

As this transition unfolds, 733 employees across Brewdog’s head office, brewing, and bar divisions will retain their positions. Conversely, up to 38 bars will close immediately, resulting in 484 redundancies.

Joint administrators, AlixPartners, have confirmed that there will be no returns for equity holders, including those who participated in BrewDog’s Equity for Punks crowdfunding initiative.

“As expected over the past couple of weeks, we have seen significant interest in the BrewDog business from potential buyers across trade and investment sectors. With Tilray, we have secured a purchaser passionate about craft brewing who will be an excellent custodian for the business in the months and years to come,” stated Clare Kennedy, a partner and managing director at AlixPartners.

“Now, our main priority is to support those affected by redundancies and encourage operators in the UK leisure sector who can assist to contact us.”

Tilray’s Strategic Vision

Tilray Brands specializes in the production and distribution of cannabis, hemp foods, as well as craft beer, spirits, and beverages.

The acquisition of Brewdog presents a ‘significant opportunity’ for Tilray to broaden its international footprint by leveraging brewing capacity outside the United States, supported by an established distribution network and a robust brewpub and hospitality framework across multiple geographies.

“BrewDog is one of the most iconic, mission-driven craft beer brands in the UK. It redefined modern craft brewing through bold innovation and a steadfast commitment to quality. What truly sets BrewDog apart is its community of passionate beer enthusiasts,” commented Irwin D. Simon, chairman and CEO at Tilray Brands.

“As we start this new chapter for BrewDog, our focus is to realign the brand with the craft beer excellence that has endeared it to so many and to strategically invest in its profitable growth. The future for BrewDog is bright, and we are dedicated to ensuring it remains a leader in the global craft beer movement.”

He also added: “Tilray’s management brings essential operational and strategic expertise, along with a diversified global beverage infrastructure. This will unlock BrewDog’s next growth phase. Moreover, my team has significant experience in the UK market, where we successfully built an ~$1.5 billion consumer packaged goods business.”

“With the BrewDog acquisition, our global beverage platform is projected to grow to ~$500 million in annual revenue, creating one of the largest diversified craft beverage entities globally. This expansion will allow for significant growth opportunities for BrewDog through enhanced distribution and investment in innovation while introducing Tilray’s complementary brands into new markets. Collectively, we expect Tilray’s diversified business to reach ~$1.2 billion in annualized revenue.”

Tilray is also engaged in talks to acquire Brewdog’s assets in the US and Australia, with finalization expected within the next 30 days.

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