BrewDog co-founder James Watt's pledge to allocate up to 19.3 per cent of his new beer brand Second Best to former Equity Punk investors has been met with scepticism by many of the retail shareholders who lost their original investment when BrewDog collapsed into administration in March 2026. The new offer, announced on social media on Friday, allows former Equity Punks to claim the same stake they once held in BrewDog in the new company for free.
The pledge
"If you were an Equity Punk investor, I am planning to allocate up to 19.3% of Second Best for you," Mr Watt wrote on LinkedIn. "You can claim the exact stake you once held in BrewDog, for free. You are not shareholders this time. You're second founders."
He added: "No catches, no cash required, and your equity in Second Best will always rank alongside my own. You'll own it. I'll fund it. And I'll dedicate myself to building it."
Around 200,000 retail investors put roughly £75 million into BrewDog across multiple Equity for Punks crowdfunding rounds from 2009 onwards. Their shares were rendered worthless when BrewDog was sold to Canada's Tilray Brands for a reported £33 million in a pre-pack administration. The sale also closed 38 bars and removed 484 jobs.
What investors are saying
Reaction across investor forums and social media has been mixed. Some former Equity Punks have welcomed the gesture as a rare attempt by a founder to make good with retail backers after a high-profile collapse. Others have raised practical and structural concerns.
The most commonly raised objections are that Second Best is a private company with no established market, no clear path to liquidity, and no committed third-party funding disclosed. Shares in a new private company carry the same illiquidity risk that the original BrewDog Equity Punk shares carried. The brand will initially produce three beers, two pale ales and a lager, with production in breweries in Germany and elsewhere in Europe.
Investors have also pointed to questions over Mr Watt's track record. He stepped down as BrewDog chief executive in 2024 following allegations of a "culture of fear" at the company, which he firmly denied. The 2017 deal between BrewDog and private equity firm TSG Consumer Partners, which valued the business at around £895 million, introduced preference share terms that ultimately ranked ahead of Equity Punks in the administration waterfall.
The Tilray deal
BrewDog had debts of more than £500 million when it entered administration earlier this year. The Tilray pre-pack sale was understood to leave preference shareholders, principally TSG, with first claim on proceeds. Ordinary Equity Punk shareholders received nothing. Mr Watt attempted to buy back BrewDog through restructuring firm AlixPartners earlier in 2026 but his bid, which he said would have included around £10 million of his own money, was unsuccessful.
Practicalities of claiming Second Best shares
An exact launch date for Second Best has not been confirmed. Mr Watt said the brand will enter the market "as soon as it has all the relevant licensed and legal consents in place" and that an alcohol-adjacent concept will be launched first. Former Equity Punks will need to verify their previous BrewDog holding to claim the equivalent stake in Second Best. No claims process or deadline has yet been published.
What it means in practical terms
The same caveats that applied to the original BrewDog investment apply to Second Best. The company is early-stage and private. Shares will be illiquid. The Financial Services Compensation Scheme does not protect equity investments. Any return depends on Second Best reaching an exit event, which is not guaranteed.
For the holders of small original stakes, the new offer carries no downside other than the time required to claim. For those who put significant sums into BrewDog and hoped to recover something through a sale, the new pledge does not replace lost capital and the underlying business risk is unchanged.
Editor's note
This is a follow-up news report on the launch of Second Best by James Watt, announced on social media on 22 May 2026. Kaeltripton has separately published a fuller explainer on UK equity crowdfunding rights at equity crowdfunding in the UK. For more news on UK investing and personal finance, see the Kaeltripton explore index.
