Modern large scale business is a complex (sometimes deliberately so for financial reasons) matter and as a trade union officer that deals with some of the largest UK businesses I can testify to that. On occasion one is left head scratching as to what the real purpose of a business move is.
Brewdog’s sale and lease back of its refrigerated warehouse and distribution centre in Motherwell, the Hop Hub, to CBRE Global Investors isnt quite in that category.
A report is here:
https://www.scotsman.com/business/brewdog-sells-eurocentral-hop-hub-in-eight-figure-deal-1-5039844
Sale and lease back is a common device in industry addressing issues around costs and risk. In this case CBRE appears to have paid Brewdog £14m on a 20 year lease and Brewdog will obviously have to pay rent to CBRE.
CBRE are a company that specialises in investing in and managing property.
So far so not exceptional and there is certainly nothing to criticise Brewdog for.
It does however put the long running issue about when craft beer brewers are and are not independent into a wider and more complex framework.
The deal is about property not beer and should have no influence over what beer is brewed and so on.
That said CBRE a significant global company now do have a stake in Brewdog’s continued existence and profitability and no doubt will at the very least keep an eye on that.
Does that impact at all on Brewdog’s independence? The devil is in the detail which of course is in commercial confidence.
Business is business…
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