Why Brewdog’s sale to Tilray has caused some friction

Unite Hospitality, the union that represents Brewdog’s workers, has reacted with anger to the way staff have been treated, as a result of the Scottish beer and bar company’s “rescue” sale to Tilray Brands.

Brewdog, which has lined up the sale to the US beer and cannabis company Tilray to the tune of £33 million, will be broken up and with roles across its bars being made redundant as a result of the acquisition.

According to Unite, Brewdog’s workers were informed on a hastily arranged conference call that the sale of the business would result in 38 bars closing and the loss of 484 jobs, some with immediate effect.

Added to this, the union also flagged that Tillray and the media were informed of the sale and job cuts before any of the workers were told.

‘Disposable pawns’

Unite general secretary Sharon Graham described the situation as “devastating” for Brewdog workers and said: “Nearly 500 lost livelihoods while yet another corporate deal is stitched together behind closed doors.”

Graham pointed out that “Brewdog workers built this brand. They deserved respect. Instead, they were treated as disposable pawns. Unite will not rest until our members have legal and financial justice.”

Unite went on to reiterate how companies have a legal duty to consult their workers on redundancies. However, it also noted that giving workers a 25-minute warning of a conference call where vital questions about pay and redundancies were not answered, was “not consultation”. Brewdog workers had already staged a protest against a sale citing “years of catastrophic mismanagement“.

‘A national disgrace’

As a result, Unite has said that it will be demanding urgent answers from both Brewdog and Tilray on unpaid wages, full transparency around the sale process, and it will be seeking the best possible redundancy terms for every affected worker.

Unite national lead for hospitality Bryan Simpson explained: “The way in which senior management have conducted themselves throughout this sales process has been nothing short of a national disgrace – with workers being given no information about the company’s plans or their futures.”

Simpson also observed that “for the CEO to tell workers that they were redundant with immediate effect, on a conference call with only 25 minutes notice, has echoes of P&O and is deplorable. Unite will be ensuring that our members receive everything they are legally entitled to.”

Looking at who else might be affected by the recent sale, Brewdog sent reassurances to its loyal crowdfunders who had each contributed to the business’s success over the years by supporting the venture with their own cash. But Brewdog’s ‘Equity for Punks’ investors had already prepared to lose out.

‘Ambassadors for the brand’

Brewdog’s most recent communication to its Equity for Punks shareholders said: “To all our Equity for Punks shareholders, thank you. Your belief, passion and investment helped build this business into what it is today. While the structure of the business changes, our gratitude does not. We would love to continue our relationship with this incredible community – to treat you as ambassadors for the brand and to honour the spirit of Equity for Punks.”

The note added: “We intend to continue your key benefits, including bar and online discounts, tattoo discounts, and a free beer on your birthday, as well as hosting annual community events. We will work through the practical details in the coming weeks.”

db has reached out to Brewdog for comment on the fall-out with Unite as well as asked for it to respond to queries over how rewarded its Equity for Punk shareholders feel following news of the sale and its recent communications.

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