The figures show that its beer has been taken out of nearly 2,000 bars in the UK, a resurgence to craft brewers who once flew high, but the brewery has suffered another major setback.
Data from the Confidential Industry shows that Brewdog’s draft beer has disappeared from about 1,860 bars over the past two years, reducing its UK distribution by a third. Its flagship punk IPA bears the brunt, with distribution cuts by more than half, falling from 1,980 bars during that time.
A bar industry insider told The Times: “Breweries are losing taps [pub and bar trade] Like you can’t believe, rival brands like Camden Town and Beavertown are entering the bar location.
The losses mainly come from bar chains and large operators, while working to repair their financial situation and reputation, depriving the brewery of important revenue. Last month, the company was forced to spread throughout the UK, including its flagship website in Aberdeen, including its flagship website, after announcing it was commercially in viable.
The downturn highlighted the challenges faced by CEO James Taylor, who took over during a turbulent period last year and had serious losses and allegations of “toxic” workplace culture. The company reported a loss of £59 million in 2023 and a loss of £30.5 million in 2022, and Taylor admitted it will remain in the red this year.
Industry figures show that BrewDog’s dependence on JD Wetherspoon is now crucial. The chain’s 794 bars account for a large portion of its remaining UK distribution. “If they lose the JD Wetherspoon deal, it’s Punk IPA as a [pub trade] product,” a source warned.
Lauren Carroll, chief operating officer of Brewdog, said the contraction was part of a broader trend: “Independent brewers across the board feel the economic pressure is under pressure from bar deals. As costs rise, consumers watch their spending, bar groups are narrowing their reach, and brewery owned bars are more emphasizing their brand.
“It’s not just us – every independent brewer is affected. We’re seeing the trend coming, which is why we’re shifting our focus to high-impact channels like festivals, stadiums and independents.”
Founded in 2007 by James Watt and Martin Dickie, Brewdog has built a reputation for high-octane marketing stunts and the success of Hoppy Buers like Punk IPA. But in recent years, controversy has been created, shading from allegations of “the culture of fear” to criticism of a 2017 deal with U.S. private equity firm TSG consumer partners.
The deal required brewers to provide a compound return of 18% on TSG’s stock, putting increasing pressure on brewers’ finances and attracting the attention of thousands of small “stock punk” investors.
Taylor, a former fashion executive who succeeded Watt and then James Arrow as CEO, has overseen the major brands of the beer line to restore momentum. But as bar distribution and ongoing losses shrink, breweries face a fight to regain their position at the bar.
