James Watt is starting Second Best and offering a ringfenced stake to former Equity for Punks backers, promising no cash required and a fresh start
The entrepreneur behind BrewDog, James Watt, has unveiled plans for a fresh brewing venture named Second Best, and has attached a promise that attracted immediate attention: a chunk of the company will be reserved for people who backed his original start-up.
Watt says he will set aside 19.3% of the new firm’s equity for members of the Equity for Punks scheme so they can claim the same proportion they once held in BrewDog, with no cash required. The announcement positions Second Best as both a business project and a gesture aimed at restoring trust among former investors.
Watt has framed the move as an obligation he intends to honour personally: he will finance the new venture himself and expects investors to become what he calls second founders. He stresses that their stake will sit alongside his own and that there are “no catches” attached to the offer.
While the new company is still obtaining the necessary licences and legal consents, Watt has set the strategic tone: start modestly, concentrate on quality brewing, and avoid the fast, far-reaching expansion that critics say contributed to BrewDog’s downfall.
What Second Best will produce and how it will begin
According to Watt’s outline, Second Best will initially be focused on packaged beer rather than rebuilding a large pub network. The early line-up is expected to centre on a few core beers — described as pale ales and a lager — made with obsessive attention to recipe and brewing process. This narrower product strategy contrasts with BrewDog’s previous approach, which mixed rapid venue growth with an expansive product list. Watt has indicated the new brand may later explore a small number of beer-focused venues, but the primary aim is to perfect a handful of styles before any larger rollout.
Product strategy and brand intent
The stated aim is to deliver a world class beer business built from the ground up, with a small, quality-first production philosophy. Watt emphasises craftsmanship and consistency, while describing Second Best as an opportunity to reconnect with the original community of supporters. The model appears deliberately conservative: fewer SKUs, tighter brewing control, and a focus on the canned market initially. Those choices reflect lessons drawn from the rapid diversification that Wad and others admitted stretched BrewDog too thin.
Ownership offer: what Equity for Punks will receive
Watt’s proposal to former BrewDog backers is specific: people who participated in the original Equity for Punks crowdfunding rounds can claim the exact stake they held in BrewDog within Second Best, up to a combined 19.3% allocation. He has repeatedly emphasised that investors will not be asked for more money — the shares will be transferred without charge — and that their holdings will rank equally with his own. The plan is intended to give the thousands who lost out in BrewDog’s sale a direct piece of a new enterprise that explicitly acknowledges past failings.
Terms and expectations
Watt has used straightforward language to explain the mechanics: no cash will be required, there is “no catch,” and those included will be able to claim their prior percentage. He has also described his role as both financier and steward, committing time and money to the project. The offer speaks to both restitution and community rebuilding: former investors become active stakeholders rather than passive creditors, and the hope is that shared ownership will align incentives as the company grows.
Why Second Best is emerging: BrewDog’s collapse and the aftermath
Second Best follows the tumultuous end of BrewDog’s UK operations, which were sold to Tilray in a deal worth £33m. The collapse of the original company left it with reported debts of more than £500m, and investors who took part in seven crowdfunding rounds — the Equity for Punks scheme raised around £75m — ended up with no payout from the sale. The transaction preserved some roles but cost others: it reportedly saved over 700 jobs while resulting in approximately 484 redundancies and the closure of 38 bars. Watt has publicly apologised to roughly 200,000 backers and acknowledged “many mistakes” in BrewDog’s rapid expansion.
Reputation, restitution and the road ahead
Watt’s announcement is as much about reputation repair as it is about launching another beer company. By ringfencing equity and promising hands-on leadership, he is signalling a different approach: smaller scale, clearer ownership, and direct accountability to the community that helped build his original brand. Uncertainties remain — licensing, regulatory approvals and the practicalities of allocating shares will take time — but the pledge is explicit: build a beer business that former supporters can again claim as their own.
Whether Second Best can translate the pledge into a successful, sustainable brewery will depend on execution and on how former investors and the market respond to this second attempt. For now, Watt has offered a tangible route back into ownership for those left behind, and a chance to start over with a business that places quality brewing and community equity at its centre.
