BrewDog: The Infamous Rise

How James Watt Built A Billion-Dollar Beer Brand

“Rip up those stuffy old text books, reject the status quo, tear down the establishment and embrace the dawn of a new era.”

When we think of beer, many of us conjure those memories from our adolescent years, and stepping into a first bar for the first time.

Some say it’s the perfect, formidable ally when the football’s on.

Other’s use it as their mechanism to wind down after a busy week on the grind.

Either way, it’s safe to say society loves a beer.

Perhaps a little too much!

In the past 15 years though, the beer world has transformed.

The breweries at the forefront of the movement are now more than just suppliers of a product.

They are social commentators, integral to local communities, and beacons of quality and change.

An entrepreneur who has been paramount to these developments is modern day beer baron James Watt, co-founder of Brewdog.

James has redefined what beer can be for humanity – a catalyst for change, a force for good, and a symbol of rebellion against the mundane.

The “punk” craft beer brand is now available in 57 countries, producing 367 million cans of beer and serving 16.7 million punters in its bars in 2023.

It employs 2,530 people across its head office, four breweries and over 120 bars.

It’s a far cry from when James and co-founder Martin Dickie started their business aged 24 from a garage in the north eastern Scottish town of Fraserburgh – selling hand-filled bottles out of a van in the local neighbourhood.

This is a story of how two Scottish kids turned wild flavours, crowdfunding and plenty of attitude into a $2 Billion business.

Today on David to Goliath:

1. From Suits to the Sea

2. The Passion Project

3. A Brewing Revolution

4. Persistence Pays Off

5. A Mastermind in Crowdfunding

6. Entrepreneurial Greatness

7. Bold Moves and Green Goals

From Suits to the Sea 

James grew up in a tiny, windswept fishing village in northeast Scotland called Fraserburgh.

His early years were marked by a fierce independence and a refusal to accept the status quo.

A force of nature, a whirlwind of curiosity and defiance.

His rebellious spirit shone brightly in his school days, often landing him in a bit of mischief.

But beneath that rebellious exterior was a mind as sharp as the biting winds of his coastal home.

Poised and ready for greatness.

At 18, James channelled his curiosity into academic excellence, securing a coveted place at the prestigious Edinburgh University to study law and economics.

Soaking up university life whilst he excelled at his studies, he headed straight into a graduate job afterwards.

But his heart was not in the world of corporate suits and legal jargon.

Just two weeks into his role as a trainee solicitor, he made a bold decision.

He traded his pinstripes for waders, his office desk for the deck of a North Atlantic fishing boat.

Back on the bitter cold shores of Northeast Scotland, James joined his father as a fully-qualified Deepsea Captain.

This decision did not sit well with his parents, who had seen him through four years of rigorous study, only to watch him abandon his career so quickly.

Yet, James knew his path lay elsewhere.

For six years, he battled the fierce elements, catching haddock and lobster.

Yet, the memories of university life and the knowledge he had acquired never faded.

So when James was ashore he found solace in a familiar area.

Blending his intellectual rigour with his artisanal craft.

Brewing beers in his garage.

The Passion Project

James’s many attempts to replicate his favorite American brews became a passion project, fueled by shipments from the US and the expertise of his university flatmate, Martin Dickie.

Martin was immersed in the world of distilling at Heriot Watt University.

But more importantly, and probably more relevant to James, he was a die-hard beer fanatic.

A legend who’s consciousness rings in one direction.

BEERWARDS!

His experiences in various distilleries and breweries were invaluable, and this gave James a unique insight into the beer world.

Using Martin’s resources, the two were able to experiment and learn without a significant financial burden.

Together, they honed their craft, and dove into the intricacies of malt selection, yeast strains, and hop varieties.

Dreaming of one day starting their own brewing business. 

“The decisions you make during your business’s formative months will define your place in the world. They will be the most monumental decisions you will ever make, shaping your fledgling business in ways you cannot yet imagine. So you’d better buckle up, hold tight and step up to the challenge. You will need to make sure your ideas, and their realization, are nothing short of awesome.”

They acquired high-quality ingredients, state-of-the-art equipment, and, most importantly, the freedom to fail and learn.

Their relentless pursuit of brewing perfection did not go unnoticed. Friends and family became eager tasters.

Their efforts culminated in a fateful meeting with Michael Jackson (no not that one!).

A renowned beer and whisky writer.

Jackson’s reputation in the industry was unparalleled; his critiques could make or break aspiring brewers.

And luckily for the boys, he couldn’t get enough of it.

The stunning appraisal of their beer was the final push they needed.

James and Martin decided it was time to take the plunge, to turn their shared passion into a reality.

A Brewing Revolution

In a world dominated by bland cask bitters and mass-produced lagers, James and Martin dared to dream differently.

Their love for heavily hopped, relentlessly bitter beers set them apart in the quaint town of Fraserburgh, Scotland.

They pursued their passion with meticulous study, bold experimentation, and boundary-pushing ideas, determined to prove that beer could be more than just fizzy yellow liquid from faceless global giants.

At just 24 years old, with a combined savings of £50,000, a £30,000 loan from the Bank of Scotland, and another £5,000 from the Princes Scottish Youth Business Trust, they embarked on an audacious journey.

During a brainstorming session at James’s home, the name "BrewDog" was born.

It was a name to transcend geographic ties, inspired by James’s dad’s playful puppy.

"We knew we wanted the name not to be geographically linked, which most small beer companies are and wanted something snappy. At that time my Dad had just got a puppy and it was bounding about and it was like dog and dog beer and brew dog came up. It translates well internationally.

Their flagship creation, Punk IPA, embodied their spirit of defiance.

It was a modern-day rebellion against the bland, tasteless beers produced by multi-national corporations, echoing the original punk movement’s defiance of mainstream culture.

BrewDog's ethos was simple yet revolutionary: to brew exceptional beers that stood out in a sea of mediocrity.

But their journey was far from smooth.

Actually, the first six months were a stone-cold disaster.

Followed by a stroke of luck…

Persistence Pays Off

With no money to hire help, James and Martin welded, wired, and built their brewery with their own bare hands, often injuring themselves in the process.

Selling their beers locally, they struggled to pay back their loans.

It was just the two of them, bottling by hand and selling door-to-door from a beat-up delivery van.

"We got some second-hand tanks and put everything together ourselves just because we had no money to pay to get people to come in and do the work"

On good days, they sold five cases; on bad days, just a couple.

Rejection after rejection.

Despite advice to make their beer cheaper and with less flavor, they remained resolute.

If they were to fail, they would do so on their own terms, brewing the beers they believed in.

"Everyone would tell us we should make the beer cheaper and make beer with less flavour and do this and do that. But if we were going to fail we were determined to fail on our terms making the beers we wanted to make and not doing what people told us do. It was the vision of what we wanted to do that had got us so far."

Then, a miracle happened.

James had sent samples to a Tesco beer competition and forgotten about them.

Weeks later, Tesco called with astonishing news: they had finished first, second, third, and fourth!

Meeting with Tesco’s buyer, who loved their beers, James secured a contract to supply 600 stores nationwide, with weekly orders of 600 to 800 cases.

Faced with an enormous challenge, they had four months to figure out how to fulfil the contract.

"So I went down to Tesco's headquarters and sat there with my best poker face on and the buyer said he loved our beers and wanted to put them in 600 stores nationwide and how he was going to do 600 to 800 cases a week. I didn't mention anything about the fact it was just two guys filling bottles by hand and there was no way we could do that. So we had four months to figure out how to supply this contract we had got ourselves into."

Bank of Scotland laughed at their request for £150,000 for a bottling line and fermentation tank.

Undeterred, James and Martin, still dressed in suits, went next door to HSBC.

They cleverly convinced HSBC to match the “amazing finance deal” supposedly offered by their current bank.

Convinced, HSBC lent them the money.

Cheeky!

Just two weeks before the Tesco deadline, the bottling line was installed, and the first beer rolled off the line days before shipping.

The Tesco deal was a turning point.

Business picked up rapidly, and BrewDog began exporting to Sweden, their biggest export market, with Punk IPA becoming the top-selling IPA in Scandinavia.

What started as a rebellious dream had become a brewing revolution.

A Mastermind in Crowdfunding

The year 2007 marked a pivotal moment for James, a year that saw the birth of the first BrewDog shop.

In the unlikely location of a derelict industrial estate in Fraserburgh, sandwiched between a needle exchange and ‘The Godfather of Carpets’.

While Martin took charge of brewing and production, crafting some of the most exciting beers the UK had ever seen, James focused on the business side.

He handled accounts and spearheaded a new breed of maverick marketing that grabbed headlines and captivated the public.

Their bold, boundary-pushing approach set them apart in an industry dominated by tradition.

"At the moment people in the UK think beer is something you go out and drink eight pints of and is cold, fizzy and has no flavour you fall over, have a kebab and wake up with a hangover. We want to get people back to drinking beer for the experience because of the depth of flavour, how well it pairs with food, how much you enjoy the aroma and the taste as opposed to just drinking it for the alcohol hits. We are making beers you enjoy in different ways."

But James didn't stop there.

He led the charge on Equity for Punks, a groundbreaking crowdfunding initiative born from frustration and a desire to remain independent.

One that would set a new standard for business financing worldwide.

Securing funding for expansion during a major economic downturn seemed impossible.

They faced numerous obstacles, spending £150,000 to set up the program and consulting five law firms before finding one willing to take the risk.

And it worked.

This approach turned BrewDog into a cult brand, with investments ranging from £95 to £10,000, reflecting widespread support and belief in their mission.

They generated £2.9 million from their scheme, gaining 7,000 committed shareholders from 32 different countries.

Their annual meeting this year saw a turnout of 2,000 shareholders, a figure that would make even FTSE companies envious.

What truly sets BrewDog apart is their vision for beer.

James and Martin wanted to change how people experienced beer in the UK.

"We just saw this environment in the UK with pubs and institutions declining and declining. Pubs are shutting down all the time and to us it was blatantly obvious why lack of choice, lack of quality and lack of service levels. We wanted to create an environment where we would want to go and hangout ourselves. So, no TV which people would stare at like zombies and no music that is so loud you cant have a conversation. An amazing selection of our beers but also draft beers from all over the planet and staff who are knowledgeable and passionate and care about the customer experience."

At a time when beer was often seen as a cold, fizzy beverage to be consumed in excess, BrewDog aimed to elevate it.

"We want to get people back to drinking beer for the experience," James explained. "Because of the depth of flavor, how well it pairs with food, how much you enjoy the aroma and the taste as opposed to just drinking it for the alcohol hits. We are making beers you enjoy in different ways."

They hadn’t just built a brewery.

They started a movement.

Entrepreneurial Greatness

By 2014 James was recognized as the Great British Entrepreneur of the Year, a testament to his relentless drive and innovative spirit.

He is one of a select few in Europe to hold the prestigious title of Master Cicerone, an honor reserved for the most diligent beer experts.

In 2016, his contributions were further acknowledged with an MBE in the Queen’s Birthday Honours list.

By this time, BrewDog had grown into a powerhouse, boasting a 360-person strong workforce, 26 bars across the UK and Europe, and a community of over 14,000 shareholders.

No bad for a brand that started on a derelict industrial estate.

James and his team saw the decline of traditional pubs and institutions, recognizing the glaring gaps in choice, quality, and service.

They envisioned a new environment—one where people would genuinely want to spend time.

“If money is your motivation then you need to be the greediest, meanest son of a bitch on the planet to make a business work. Solely money-focused businesses do exist, but I don’t like being around them or their people.”

No televisions turning patrons into zombies, no deafening music. Just an incredible selection of beers from around the world and staff who were passionate and knowledgeable about delivering an exceptional customer experience.

But James’s journey didn’t stop with brewing.

His later achievements include authoring several influential books.

"Business for Punks: Break All The Rules – The BrewDog Way"

"BrewDog: Craft Beer for the People"

Both books underscored BrewDog’s impact on the beer industry from business and marketing perspectives.

“You need to be an independent, an outsider, a nomad, a libertine. You need to be completely self-sufficient and not rely on anyone for anything. If a skill set is important to your business, then you better learn it and learn it fast.”

Bold Moves and Green Goals

In 2019, BrewDog faced an extraordinary challenge with their top-selling U.S. beer, Elvis Juice.

Confronted by a legal threat from Elvis Presley’s estate, James and Martin responded with unparalleled boldness.

They legally changed their names to Elvis, crafting a response letter filled with humor and defiance.

This move not only showcased their rebellious spirit but also garnered thunderous applause and solidified their reputation as industry mavericks.

These daring stunts, combined with an unwavering commitment to quality and innovation, propelled BrewDog to extraordinary heights.

By 2019, the company proudly boasted 22% ownership by 120,000 dedicated beer-drinking investors through the pioneering Equity for Punks program.

With revenues soaring towards $300 million and a valuation of $2 billion, James’s 24% stake was worth an impressive $480 million, while Martin’s 20% stake was valued at $400 million.

Now with 100 bars spanning the globe and a staggering 130,000 Equity Punk shareholders, crafting exceptional beer remains the heartbeat of James and Martin’s mission.

But the past few years have seen James venture into the realm of sustainability.

In 2020, BrewDog shattered industry expectations by becoming the world's first carbon-negative brewery. A challenge to businesses everywhere to rethink their environmental impact.

James, in collaboration with Mike Berners-Lee of Small World Consulting, embarked on a journey to calculate BrewDog's carbon emissions and implement genuine reforestation programs.

Their commitment led to the acquisition of a 9,308-acre plot in the Scottish Highlands, launching one of the largest reforestation projects the UK had ever seen.

But we must remember where it all started.

James and Martin took on the Goliaths with nothing but a dream, a defiant spirit, and a couple of beat-up delivery vans.

They’re living proof that by dreaming like giants, fighting like underdogs, with self-belief as your sling, you can conquer the world.

Now, it’s over to you.

Yours truly,

-Nigel Thomas

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