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Scottish craft beer brand BrewDog is experiencing a substantial decline in its market presence, with nearly 2,000 pubs across the UK severing ties with the brand.

First reported by the The Sunday Telegraph, this shift, which has seen BrewDog's distribution drop by over a third, highlights the challenges the company has faced amid a changing consumer landscape and ongoing controversies regarding its workplace culture.

A national petition launched by the union in January 2024, urging BrewDog to reverse its decision to withdraw the Real Living Wage for its bar employees.

Sustainability may also be a contributing factor. Last year, BrewDog also announced that it would relinquish its carbon-negative status and withdraw from the carbon credits market. At the time, national media outlets criticised the company for relinquishing its carbon-negative status, arguing that the company is failing to uphold its ethical commitments, with industry insiders labelling the move as indicative of a lack of moral responsibility.

According to industry sources, approximately 1,860 pubs have removed BrewDog products from their menus over the past two years, resulting in a staggering 52.3% decrease in the availability of its flagship beer, Punk IPA.

The decline is particularly pronounced in urban areas such as Shepherd’s Bush, Camden and Shoreditch, as well as cities like Oxford, Brighton and Leeds, where consumers increasingly favour rival draught beers from brands like Beavertown and Camden Town.

A source told The Sunday Telegraph that BrewDog was “losing taps like you wouldn’t believe”.

The loss of distribution comes at a critical time for BrewDog, which has been grappling with significant financial challenges. The company reported losses of £59 million in 2023 and £30.5 million in 2022, with chief executive James Taylor indicating that the company is likely to remain in the red this year.

The closure of ten BrewDog bars across the UK, including its flagship location in Aberdeen, underscores the brand's struggle to maintain commercial viability.

BrewDog's reliance on major pub chains, particularly JD Wetherspoon, has become a focal point of concern. With 794 pubs operating under the Wetherspoon brand, any disruption in this partnership could severely impact BrewDog's revenue streams. According to industry analysts, the Wetherspoon deal would effectively eliminate Punk IPA from the pub trade.

Founded in 2007 by James Watt and Martin Dickie, BrewDog rose to prominence during a craft beer boom, known for its bold marketing tactics and innovative brews.

However, recent years have seen the brand embroiled in controversy, including allegations of a 'toxic' workplace culture and inappropriate behaviour by former executives.

Watt resigned as CEO in 2024, passing control to Taylor, who has since undertaken a rebranding effort to restore the company's reputation.

The decline in distribution serves as a stark reminder of the competitive pressures within the alcoholic drinks industry and the importance of maintaining a positive brand image amid operational challenges.