BrewDog’s global brand and 11 of its brewpubs have been acquired out of administration by Tilray for £33m.
Tilray, which is known in the beverage, cannabis and wellness industries, has taken on the sites in the UK and Ireland.
This comprises UK-based brewing and distribution facilities (specifically, the brewery in Ellon, Aberdeenshire, and The Hop Hub, a national distribution centre in Motherwell, Lanarkshire), and its extensive brand portfolio, as well as eleven existing BrewDog retail units in the UK and Ireland.
It is also negotiating to acquire certain BrewDog assets in the United States and Australia.
In total, the transaction preserves 733 jobs in the UK, where BrewDog employees will follow a TUPE process to become employees of Tilray Brands UK Ltd.
No offer was made at any stage of the sales process, from any prospective bidder, which would have preserved BrewDog in its entirety. Therefore a total of 38 bars in the UK will close with immediate effect, leading to 484 redundancies.
Irwin D. Simon, Chairman and Chief Executive Officer, 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. What makes BrewDog truly special has always been its brewers, its brewpubs and its passionate community of beer fans.
“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.”
Simon 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 annualized revenue.”
In a statement Tilray said the addition of BrewDog accelerates their ability to enter new markets by providing scaled brewing capacity outside the U.S., an established international distribution network and a premier brewpub and hospitality infrastructure in the UK and select international markets.
Under the terms of the transaction, Tilray paid £33 million in exchange for BrewDog’s worldwide intellectual property, UK brewing operations and a portfolio of eleven premier and profitable brewpubs including Birmingham, Canary Wharf, Dogtap Ellon, Dublin, Edinburgh DogHouse, Lothian Road, Manchester, Paddington, Seven Dials, Tower Hill, and Waterloo.
These brewing and related operating assets are expected to generate annual net revenue of ~$200 million and adjusted EBITDA of ~$6 – ~$8 million. The acquired business is expected to become cash flow positive beginning in fiscal 2027 as integration initiatives and operational efficiencies are realized.
The proposed U.S. and Australia components of the acquisition will be subject to a separate purchase agreement to be negotiated by the parties and is expected to be finalized and closed in approximately 30 days.
Commenting on the sale Unite general secretary Sharon Graham said: “This is a devastating day for Brewdog workers. Nearly 500 lost livelihoods while yet another corporate deal is stitched together behind closed doors.
“Brewdog workers built this brand. They deserved respect. Instead, they were treated as disposable pawns. Unite will not rest until our members have legal and financial justice.”
Companies have a legal duty to consult their workers on redundancies. Giving workers a 25-minute warning of a conference call where vital questions about pay and redundancies were not answered, is not consultation. Unite will be demanding urgent answers from both Brew Dog and Tilray on unpaid wages, full transparency around the sale process, and it will be seeking the best possible redundancy terms for every affected worker.
Unite national lead for hospitality Bryan Simpson added: “The way in which senior management have conducted themselves throughout this sales process has been nothing short of a national disgrace – with workers being given no information about the company’s plans or their futures.
“For the CEO to tell workers that they were redundant with immediate effect, on a conference call with only 25 minutes notice, has echoes of P&O and is deplorable. Unite will be ensuring that our members receive everything they are legally entitled to.”
