American operations scaled back after major losses – contract brewing now takes center stage
For over a decade, BrewDog appeared unstoppable. What began as a rebellious microbrewery in Ellon, Scotland, swiftly evolved into the poster child of the craft beer revolution. With breakneck speed, the company conquered the UK market and soon made its mark overseas with production sites in the USA, Australia, Germany, and India. Even controversies surrounding workplace culture and internal leadership struggles did little to slow its rapid global rise—until now.
In 2024, BrewDog’s American dream hit a wall. The company reported a pre-tax loss of GBP 6.7 million (USD 8.4 million) for its U.S. operations, revealing ongoing inefficiencies and a drastically underutilized brewing facility in Columbus, Ohio—currently running at just 30% capacity.
To respond, newly appointed U.S. CEO James Taylor launched a turnaround strategy titled “Operation Slingshot.” The plan pivots BrewDog's focus toward contract brewing, which has grown by an impressive 544%, while simultaneously slashing distribution from 33 states down to just 14. Despite these cuts, U.S. revenue saw a modest 2% increase to GBP 38 million (USD 47.6 million), with Taylor highlighting a slim operating profit of GBP 376,000 (USD 471,000) as a sign of progress: “It’s not a disappointing result at all,” he noted.
The company had injected GBP 4.2 million (USD 5.3 million) into its U.S. business in 2024, but insiders now describe the outcome as “dire.” Adding to the upheaval, former U.S. head John Graham stepped down earlier in the year after fewer than two years in the role.
These developments come on the heels of deeper financial troubles. In 2023, BrewDog recorded a global pre-tax loss of GBP 59.2 million (USD 74 million)—more than double that of the previous year. Though revenues increased from GBP 321 million to GBP 355 million, soaring costs and asset write-downs, especially involving underperforming bars, erased those gains.
The losses also coincided with a major leadership change. Co-founder James Watt, once synonymous with BrewDog’s explosive growth and aggressive style, stepped down in May 2024. His successor James Arrow is now working to restore profitability, with a 10% boost in grocery channel sales reported in the first half of the year.
Despite the U.S. setbacks, Taylor insists the market still holds “huge opportunity.” But with investor confidence shaken and the craft beer sector facing headwinds, BrewDog must now prove that its global ambitions remain more than just bold branding.
