Kmflett's Blog

In a New Year message to Brewdog employees James Watt has revealed that the Company made a loss in 2023. Despite frequent reports of an IPO Brewdog remains in private hands (effectively owned by a private equity company) so we are not likely to get any more details. The BBC has reported (10th January) that the loss was £24m which Brewdog attributes to increased brewing costs particularly for PunkIPA

Hospitality is struggling against the backdrop of a cost of living crisis and a Government failure to act on the economic issues facing the industry. There are likely to be more specific factors however. Brewdog bars are quite expensive for beer and food (if you want a reasonably priced pint of Punk, Wetherspoons will provide it) and the beer is no longer the stand out it was in the early days.

Watt went on to say that from April 2024 Brewdog workers outside of London will no longer be paid the real living wage (£12 an hour) but the national living wage of £11.44. It is, if you like, a cut in the increase of wages which itself is driven by a very high rate of inflation. The headline rate of inflation has now dropped to 3.9% but housing and food costs are much higher than that still.

The move is totemic because Brewdog has sold itself as an employer that pays at the top of the market. Indeed Watt lists a number of other employee benefits which he is not cutting, at the moment. The Guardian reports (10th January) that in a staff survey a year ago the real living wage was the benefit most wanted to keep above all

Whatever the issues with Brewdog’s profitability are- general or specific- they won’t be solved by cutting wages. Morever it should be noted that Watt has just announced this. In an ethically run company a union is recognised, its representatives are consulted, negotiations take place and difficulties are worked through.

In short the New Year message is Unionise Brewdog!

Unite the Union have launched a petition calling for Brewdog to keep the Living Wage. Sign below:

https://www.megaphone.org.uk/petitions/brewdog-pay-the-real-living-wage