Latest news with #JamesTaylor
Telegraph
5 hours ago
- Business
- Telegraph
How BrewDog's craft beer revolution went flat
When James Taylor became chief executive of BrewDog in March, he was heralded as the man to take the troubled brewer 'into its next chapter'. After a turbulent few years that saw the company accused of running a 'toxic' workplace and post spiralling losses, Taylor, a cool-headed former fashion industry executive, hoped to draw a line under BrewDog's past. His surprise appointment came after former boss James Arrow stepped down after less than a year in post. But just months into Taylor's tenure, BrewDog has found itself in choppy waters once again. Unite, the union, has accused the company of 'potentially unlawful' behaviour after BrewDog announced the closure of 10 of its bars because they were not 'commercially viable'. The union claims staff were given less than four days notice. The company has refused to say how many staff will be affected. Taylor denies unlawful conduct and claims that Unite's accusations are 'factually incorrect'. A BrewDog spokesman adds that while the bars will close, staff will continue to be paid during a consultation period. 'It sounds fairly brutal from a financial point of view but [the bars] were loss-making,' Taylor says, insisting staff affected by the process are being treated 'with the utmost respect'. Nevertheless, the closures highlight the pressure on a business that was once considered one of Britain's proudest start-ups. Credited with popularising American-style craft IPAs in the UK, BrewDog claimed to have grown from nothing into a 'unicorn' business worth $1bn (£740m) in just a decade. Now, after years of rapid growth, the company is fighting just to stand still. It is battling inflation, falling consumer confidence and a decline in boozing. At the same time, questions have been raised over an unorthodox private equity deal struck in 2017, which turned its founders into multimillionaires but forced BrewDog to deliver an 18pc compounding return to its investors. It is plain to see why Taylor feels he must take action: pre-tax losses at the brewer have spiralled in recent years, growing from £30.5m in 2022 to £59m in 2023. Taylor says the company was profitable on an earnings before interest, tax depreciation and amortisation (Ebitda) basis – a measure used in the city to show the underlying performance of the company – in 2024 but admits full results, when made available, will not show a return to the black. 'Below Ebitda, that is where you get various sort of shareholder financial charges, for example, so no, it won't be a pre-tax profit at all. The pre-tax losses will have reduced,' says Taylor. 'We have an awful lot of incredible things to do with this business. You've seen this week we've had to make some harsh decisions as part of that.' Insiders say BrewDog has been making harsh decisions for some time, pointing to numerous redundancies among the company's central staff. 'In 2023, there was a big cull and then three months ago there was another wave,' says a former BrewDog employee. 'Some people [who] had worked there a very long time left. There were some really surprising names.' Anti-establishment zeitgeist Brewers and pub companies have been hammered by the soaring cost of energy, fuel and labour, with the Chancellor's April tax raid heaping further pressure on businesses that employ a lot of people. Taylor says the tax raid is not to blame for BrewDog's closures but concedes that it 'makes it harder to make money in hospitality [and] makes it harder to make profitable bars'. At the same time, inflation has pushed up the price of a pint just as the high cost of living has made people more cautious about their discretionary spending. BrewDog's sales growth has slowed dramatically in recent years, with revenues rising by less than £3m to £357m in 2024. 'The bars have been a big problem. Smaller ones that are in the wrong location have probably got quite severe overheads, and not a lot of people coming in,' says the source. Taylor says: 'The beer market is not growing. That just means we've got to take market share from our competitors.' In an attempt to restore growth, BrewDog has rebranded its beers around the idea they are 'brewed fresh' and deleted several of its past social media posts, distancing itself from former chief executive James Watt, who would use the brand's social media to rail against big beer rivals. Taylor says he wants to give BrewDog 'a slightly different personality' – toning down its former anti-corporate stance in favour of marketing around the idea of 'quality'. 'We have a different leadership team. We have a fresh attitude to what we're trying to do,' he says. He adds: 'We are going to be exciting in our [new products], we're going to be going to some very interesting spaces and territories. We're going to improve the quality of our headliners.' Whether BrewDog can achieve this is up for debate. The company's reputation has been shaken by allegations of a 'toxic' workplace under Watt, who stepped down as chief executive last year, and accusations that he acted inappropriately with female staff, which he has stringently denied. Its beers are also not considered as cutting-edge as they once were either. 'BrewDog built the category of craft beer,' says Greg Wells, managing director of beer consultancy We Are Beer. 'They were bombastic with it and it spoke to a generation of millennial beer drinkers in a really exciting way – myself included.' But the anti-establishment rhetoric that helped BrewDog capture the zeitgeist – Watt was a prominent critic of corporate 'fat cats' and the actions of big beer companies during his time leading the brewer – lacks some resonance with younger drinkers. 'Poking the corporate in the eye, I don't think that connects with 27-year-olds,' says Wells. 'I think part of what BrewDog needs to find is what that punk spirit and creativity means today.' The former BrewDog employee says: 'Craft beer in terms of pubs, its share has gone backwards. Premium world lager is flying, Guinness – I don't know where, how, or when it caught the imagination of Gen Z, but the whole Kim Kardashian and 'splitting the G' trend on TikTok and everything else – it's just flying. 'For all BrewDog's awareness and for all that it sells in the supermarkets, the [pub] consumer is not demanding it.' Move away from 'Equity Punk' Then there is the £213m deal BrewDog's founders struck with the American private equity giant TSG Consumer Partners in 2017, which gave TSG a 22.3pc stake in the company and turned both Watt and Dickie into multimillionaires. During its wild ascendancy, BrewDog raised millions of pounds from thousands of ordinary people who bought so-called 'Equity Punk' shares in the company, fuelling its growth and international expansion. However, prior to selling the stake to TSG, Watt and Dickie changed the company rules and watered down investor protections, leaving many of their retail investors worried that they will end up with nothing. Crucially, written into the TSG deal was an 18pc compounding coupon, which rapidly increases the interest on TSG's shares on an annual basis, potentially overriding other shareholders and leaving them with little value in the company. 'Effectively, private equity is going to end up owning the entire business,' says a city source. 'If you've got that interest compounding at 18pc and the business is flat, effectively, the business will have to be financially restructured, and with private equity being the lender first resort, it will end up substantially in their hands.' Paul Savage, who bought shares in the company in 2020 during one of its crowdfunding rounds, is among those angry at the structure of the deal, which could wipe him out. 'Why are you trying to hurt your initial crowdfunding people? Why is money from a shady investment firm better?' he says. Taylor says he was not there when the deal was struck, but insists this is not the case. 'We don't 'owe' TSG that money. It doesn't sit on the company balance sheet,' he says. 'My job is to create value for all shareholders. I don't sit there worrying about coupon rates or that sort of thing. I work for all shareholders, it doesn't matter whether that's TSG, whether that's the founders of this business, or [the Equity Punks].' Before James Watt stepped down in 2024, the company had been working towards an eventual IPO or a sale to private equity. Taylor says no IPO or sale is currently planned and that TSG supports his turnaround plans. 'I will try and create shareholder value for everybody and what happens in the future in terms of the value of that? Well, quite frankly, it's an academic conversation for the moment,' says Taylor. A spokesman for TSG Consumer Partners said: 'We remain confident in BrewDog's fundamental brand strength and market position under the leadership of CEO James Taylor, COO Lauren Carrol and the new management team, who have successfully returned the company to profitability in 2024. 'We continue to work closely with management to maximise value for all stakeholders as BrewDog capitalises on the significant opportunities in the craft beer space and leverages its market-leading brand portfolio for future growth.'
Miami Herald
7 hours ago
- Miami Herald
City commissioner in Florida asked 12-year-old Illinois girl for nudes, cops say
An elected official in Florida is facing two dozen felony charges after a mom in Illinois reported he had been sexting her 12-year-old daughter over Snapchat, authorities said. St. Lucie County Sheriff Richard Del Toro Jr. announced July 24 that law enforcement conducted a traffic stop on Fort Pierce City Commissioner James Taylor, 38, and took him into custody. His arrest marks the culmination of a nearly yearlong investigation that began in August 2024 when the victim's mom filed a report with the Evanston Police Department, the sheriff said in a news conference. The mom of the now-13-year-old girl said a man had been inappropriately contacting her daughter over Snapchat beginning when she was 12, according to investigators. He sent her nude images of himself and asked her to do the same, Del Toro said. This went on for a couple months, investigators said. Detectives in Illinois traced the messages to a person in St. Lucie County and contacted the sheriff's office, which confirmed the suspect's IP address belonged to Taylor, the sheriff said. Investigators don't believe Taylor and the girl ever met in person. Taylor was pulled over during a traffic stop involving a 'ruse,' and was cooperating with detectives, according to the sheriff. 'I would say that he admitted his role in these and was very remorseful, obviously, I think mainly because he was caught,' Del Toro said. Taylor was elected Fort Pierce's District 2 commissioner in 2024 after serving on the county's planning and zoning commission for nearly a decade, according to his commissioner biography. He's involved in several local organizations, including the county's education board and theater advisory board. 'The City of Fort Pierce is aware of the recent arrest of Commissioner James Taylor,' a spokesperson for the city told McClatchy News in an email. 'We understand that this development may raise concerns within our community, and we want to reassure our residents that we remain committed to serving the public with integrity, transparency and accountability.' The 24 charges against Taylor include: transmission of materials harmful to minors by electronic equipmenttransfer or display of obscenity to a minorharmful communication to a minorlewd computer solicitationlewd computer solicitation of a child solicitation of transmission of child pornography by electronic device or equipment. Law enforcement officers are investigating whether there could be additional victims and ask anyone with information to come forward. Fort Pierce is about a 65-mile drive north from West Palm Beach.
Yahoo
a day ago
- Business
- Yahoo
BrewDog to close ten UK bars amid 'continued challenges' in hospitality
BrewDog has announced the closure of ten of its bars across the UK, as it faces the "continued challenges" in the local hospitality sector. The closures will affect venues in Aberdeen, the group's flagship bar, Brighton, Camden, Dundee, Leeds, Oxford, Sheffield, York and two locations in London. The exact number of jobs impacted remains unclear. Just Drinks asked BrewDog to confirm the number of staff working at the affected bars. The company declined to comment but said it would look to "redeploy" as many employees as possible. After the bars are closed, BrewDog will have 49 outlets left in the UK. In a communication to staff, BrewDog chief executive James Taylor attributed the closures to "continued challenges facing the UK hospitality industry", such as 'rising costs, increased regulation, and economic pressures". He added that the move was "part of the wider refresh we have set out, and it aligns with our renewed focus on innovation, quality, and a new brand identity. It positions our bar portfolio for long-term, profitable growth". He further explained that maintaining these venues would place the broader business under pressure, "making it harder to invest where we know we can grow". Taylor was promoted to the position of CEO in March, replacing James Arrow who left after less than a year in the role. He had worked at BrewDog as its financial chief since November 2023. The company has initiated a consultation process for affected staff that will last a minimum of 14 days. A BrewDog spokesperson said: 'We are working hard to minimise the impact on our people, and we expect to redeploy many affected team members across the BrewDog network." According to Bryan Simpson, national lead for hospitality at the Unite union, the Elvis Juice brand owner gave employers under four days' notice. 'For Brewdog to give loyal workers less than 4 days' notice of the closure of their workplace is not just morally repugnant, it is potentially unlawful," said Simpson. "This is yet another example of a company that doesn't have the slightest regard for basic employment law let alone the welfare of their workers. We are currently supporting our members across these 10 sites to collectively challenge these redundancies, and we would urge anyone impacted to reach out to us for legal support." In June, BrewDog's chief reportedly said the company was not making moves towards filing an IPO. In a report from The Times, BrewDog's chief James Taylor said an Initial Public Offering (IPO) was 'not on the agenda at the moment', as the company announced a return to profitability for the first time since 2021. The company, which at the time confirmed Taylor's comments to Just Drinks, said the CEO remained 'focused on strategy and delivery'. "BrewDog to close ten UK bars amid 'continued challenges' in hospitality" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
2 days ago
- Business
- Yahoo
BrewDog to close 10 pubs after Labour tax raid
BrewDog is shutting 10 bars across the country in the wake of Labour's tax raid on employers in the latest blow for the hospitality sector. The self-styled 'punk' brewer said on Tuesday it would close key locations such as Leeds, Sheffield, and London, as well as its flagship site in Aberdeen, and had begun a consultation with staff about redundancies. A spokesman for BrewDog called it a 'rationalisation' of the company's bar estate. 'Despite our best efforts, and the hard work of our teams, it has simply not been possible to make these bars commercially viable,' they said. In a letter sent to staff this week, James Taylor, chief executive, said the closures were part of a broader restructure of the company. He added: 'It positions our bar portfolio for long-term, profitable growth, but also takes into account the continued challenges facing the UK hospitality industry, including rising costs, increased regulation, and economic pressures.' The closures come as hospitality businesses across the UK grapple with soaring labour costs following an increase in employers' National Insurance (NI) contributions and the lowering of the threshold at which they are paid. Hospitality chiefs have argued that these changes will disproportionately hurt the sector because of the number of part-time and lower paid staff it employs. Many have already cancelled investments and paused hiring, while others have announced redundancies. A spokesman for BrewDog refused to disclose exactly how many jobs would be affected, but said 'every effort will be made to made to redeploy as many members of staff as possible'. Recent struggles Founded in 2007 by James Watt and Martin Dickie, BrewDog became one of Britain's biggest beer brands by using controversial marketing stunts. These included selling what they claimed was the world's strongest beer – served in the carcass of a squirrel – and hiring a tank to drive through London. Mr Watt claimed the business had a 'punk' ethos and frequently criticised the practices of big brewers like Budweiser's owner AB InBev. The company raised millions from thousands of retail investors it called 'equity punks'. However, in recent years it has struggled with accusations of being a 'toxic' workplace and questions over its finances. Mr Watt stepped down last year and has since launched a new company called Social Tip, though he still retains a seat on the board and a 21pc stake in the company. Mr Taylor, who took charge of the company in March, has shelved plans for a stock market float, saying in June that there were no plans to sell the business. Instead, he vowed to put the company on a more solid financial footing having made consistent losses. BrewDog's bar business posted a pre-tax loss of £6.7m in 2023 on revenues of £69.4m. This was down from an £11m loss in 2022. The closures will leave BrewDog with 49 bars across the country. It runs more than 100 across the world. Mr Taylor insisted in his letter the company was 'passionate' and still saw a 'significant long-term opportunity' for the brand's bars in the UK. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Map shows where 10 BrewDog bars are closing this week
BrewDog is set to close 10 of its bars within days, blaming factors like rising costs and increased regulation in the industry. The closure plans will see all the bars close on 26 July in locations across the country – including BrewDog's first ever venue in Aberdeen. The Scottish craft brewing giant said it has made efforts to preserve the site, but it 'has simply not been possible to make these bars commercially viable'. Chief executive James Taylor told staff the closures are part of a refresh of its estate, partly in response to 'rising costs, increased regulation, and economic pressures' on the sector. He added that the brand will however still look to grow its bar business, with plans for more larger bars in 'destination' locations and to open smaller community bars. A consultation process lasting at least 14 days will be launched following the closures, which will put close to 100 jobs at risk. Where are the BrewDog bars that are closing? Bars are being closed in major cities across the UK – including three in London. Two bars will be closed in Scotland, while the other five affected are in England. Click our interactive map below to see which 10 bars will be closing on 26 July: How many BrewDog bars are there? BrewDog has established a global presence with over 100 bars worldwide. In the UK, the company operates 71 bars, including 17 in Scotland, where it was founded in 2007. These bars are spread across cities like London, Edinburgh, and Manchester. Scotland's 17 locations reflect the company's roots in Fraserburgh. London is where most BrewDog bars are situated, with 21 currently open in the capital. Beyond the UK, BrewDog's international footprint includes approximately 30-40 bars in markets like the US, Australia, Germany, and Japan. The tally in the UK will drop to 61 bars after the closures on 26 July. Who owns BrewDog? BrewDog was founded in 2007 by James Watt and Martin Dickie in Fraserburgh, Scotland. Watt, the public face of BrewDog, stepped down as CEO in May 2024 after 17 years. He transitioned to a non-executive role as 'captain and co-founder,' retaining his 21% stake. James Arrow, former COO, briefly took over as CEO. In March 2025, Arrow also stepped down for personal reasons, and James Taylor, who was BrewDog's former CFO, became CEO. Taylor now runs the company alongside COO Lauren Carrol. US private equity firm TSG Consumer Partners also holds a 22% stake in the company, while BrewDog's community of investors – known as Equity Punks – have invested in the company through crowdfunding initiatives and hold over 25% of the company's shares.
