James Watt: ‘We have an unshakeable confidence in the future of BrewDog’

The co-founder of BrewDog has said he has “unshakeable confidence” in the future of craft brewer despite losses widening in 2022.

Writing in the company accounts, James Watt said it had been a “very challenging year, not just for BrewDog but for all businesses”.

Energy bills at the group’s Aberdeenshire brewery tripled in 2022 and price increases across its supply chain meant the cost of producing its signature Punk IPA rose 34% year-on-year.

Operating losses at the Scottish brewer widened from £5.46m in 2021 to £24m in 2022.

Revenue rose from £285.6m to £321m but adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) dropped from £23.7m in 2021 to £639,000.

Watt admitted the team had been “disappointed” by the figures but said much of the loss had been due to investments in the business and a “devastating increase in input costs”.

“Despite increasing costs, and a very challenging economic outlook, we have an unshakeable confidence in the future of BrewDog,” he added.

BrewDog was founded by Watt and Martin Dickie in 2007 and it now employs 2,649 people and trades from more than 100 bars worldwide.

In 2022, it invested heavily in opening its two biggest venues globally, in London’s Waterloo and in Las Vegas.

Watt said the company was continuing its global expansion and was working with a growing number of franchise partners, including in Australia and India, on new openings.

He added that India could become one of BrewDog’s “most important international markets in the next five years”.

BrewDog has identified prospective sites in Thailand, Italy and the Netherlands and plans further openings in the US and UK.

“With fantastic joint ventures in place, we are now brewing beers locally in both Japan and China and we have rock solid sales and distribution channels ready to go in these key beer markets,” Watt said.

The company has also commissioned a new distillery at its headquarters in Ellon, Aberdeenshire, to maximise production of gin, vodka, rum, and whisky.