He will hand over the reins to James Arrow, who joined BrewDog as chief operating officer last summer.
James Watt is to step down as chief executive of BrewDog, 17 years after he co-founded the business.
In a lengthy post on LinkedIn, Watt said his time leading the craft brewer had been "the best adventure I could ever have wished for".
He will hand over the reins to James Arrow, who joined BrewDog as chief operating officer last summer after working as managing director at Boots Opticians.
Watt will move into the new role of ‘captain and co-founder’ and remain as a board member, director, and part-time strategic advisor to the business. He will also continue to give 20% of his BrewDog shares to team members.
BrewDog chairman Allan Leighton said Watt made him aware of his desire to step back from the business last year, which led the company to put a succession plan in place and recruit Arrow.
Leighton said: "James Watt, alongside Martin Dickie, created this great business from a garage in Fraserburgh. Few have accomplished what he has. From very humble beginnings under his leadership BrewDog has grown to become the world’s leading craft brewer, employing 2530 people across its head office, four breweries and over 120 bars."
While Watt has overseen the growth of BrewDog into a global craft beer business, his tenure has been marred by controversy in recent years.
In 2021, more than 100 former employees signed an open letter alleging there was a "culture of fear" within the business. Watt later apologised and said the company was "committed to doing better".
However, in 2022 a BBC documentary, Disclosure: The Truth about BrewDog, alleged further inappropriate behaviour by Watt, which he has since denied.
BrewDog has also repeatedly clashed with the Advertising Standards Authority (ASA) over its eye-catching campaigns. Last year, an advert claiming it was ‘the world’s first carbon negative brewery’ was banned by the ASA, while in 2022 the watchdog ruled a BrewDog marketing email implying its fruit beers counted as "one of your five a day" could mislead customers.
Writing on LinkedIn, Watt said: "During my time at the helm of BrewDog, there have been highs and lows, up and downs, crazy successes and incredibly hard challenges. When I look back on the last 17 years (119 Dog Years) my overwhelming feeling is one of gratitude.
"Gratitude to have been able to build the world’s leading craft beer brand, from scratch. Gratitude to have been able to work with such amazing people all over our business including our fantastic community. I am eternally thankful for all the brilliant beers, all the standout batches of Jack Hammer and all the wild adventures we have been on as a team.
"I am also grateful for the tough times too, for the learnings they provided, the resolve they instilled and the perspective they offered."
Before working at BrewDog and Boots, Arrow spent a decade at Dixons Carphone in a variety of senior roles including e-commerce, trading, operations, sales and transformation.