AIL Meets BrewDog

BrewDog is the world’s first ‘punk’ brewery. When James Watt and Martin Dickie started the company in 2007 they refused to take out loans from banks. Instead they crowd sourced funding, making investors from the public shareholders in the process. This, along with their outspoken stance on big corporations jumping on the craft beer bandwagon, has earned them a reputation for being controversial by their rivals and the press. We chat to James about why their business model works and their unique battle to support real craft beer.

Why didn’t you go down the traditional investment route?
We like to do things differently. We tore up the rulebook when we launched Equity for Punks which has now raised more than £17 million, and we’re half way through our fourth wave of funding. BrewDog is owned by 30,000 shareholders who, like us, live for craft beer. Equity for Punks is the world’s biggest and boldest crowdfunding scheme. It works and it means we don’t have to rely on the faceless suits to continue to scale up.

In September you launched a bond scheme with CrowdCube to expand the business. How did this idea come about?
We now have the first ever UK crowdfunding scheme offering both equity and bonds. Investing in the mini bond gives you a steady, fixed rate income for a minimum investment of £500 maturing over four years, with 6.5% p.a. over that time. We wanted to offer this as an extension of our existing Equity for Punks programme to reach a new type of investor. The bond has raised £1.9 million to date, which is a massive achievement. People investing in the BrewDog bond get a discount on our online shop and in our bars, and a personalised ID card. The investment opportunity will remain open until mid-October.

Why do people think you’re so controversial?
Because we’re unwilling to compromise on the quality of the beer. That’s why we have come up against the likes of the Portman Group and other tedious groups who have tried to shout down our endeavours. And yes, we have an opinion too about the big money-focused corporations who flood the market with bad beer. We’re unapologetic for that, we will stand up for the rights of small breweries and defend our passion for craft beer to the death (of crap beer).

You've stopped serving Lagunitas now that it’s been bought by Heineken. Are too many people jumping on the craft beer bandwagon to make money?
Huge industry deals and mergers try to eclipse the efforts of the smaller craft breweries. Craft beer is made with passion, so we are against big monolithic companies trying to corner this ‘market’. Acquisitions like this one go against the very nature of craft beer, and by commoditising it they’re pulling the wool over customers’ eyes.

How did the idea to launch a beer hotel (BrewDog Hotel, soon to open in Scotland) come about?
This is something we’ve had in the pipeline for a while. We know a lot of our beer community take the trip to visit the brewery in Scotland, but we want to give them a place that punks would be proud of. Our brewery and the home of BrewDog is in the beautiful town of Ellon, and anything that we can do to turn the spot into a tourist destination is fine by us. And obviously in-room beer taps is the way to do it!

Which is your best-selling beer?
Punk IPA was the beer that started the revolution. It’s our scene-stealing flagship, layered with new world hops creating an explosion of tropical fruit. Full-on, full flavour at full throttle.

You export your beers to Europe, the US, South Africa, and the Far East. Do different countries have different palates?
We wouldn’t say there’s a difference in palates exactly, but every region has beers they’re more used to and are more fond of. Before we open outlets in any new region we carry out extensive research into what the locals are drinking, and we tailor the selection of BrewDog beers we stock in response to this. We also work with local small breweries to stock regional guest beers, as we like to champion other artisanal outfits in our bars and restaurants.

Brewdog operate bars in Camden, Clapham, Shepherd’s Bush, Bethnal Green and the BottleDog shop on Gray’s Inn Road.