Brewdog Founder: The Untold Story Of One Britain’s Fastest Growing Companies: James Watt | E157
3558 segments
you've had a lot of controversy over the
last two years bullying lying unfair
dismissals all of this stuff what'd you
say to that i did i did push people too
far
how fast did brudog grow we have grown
on average 87 percent a year [ __ ] you
know everyone told us make your beer
cheaper change your name change your
packaging and we didn't listen to any of
that how can we get our name out there
with no money at all so we had to do
things that were intentionally
provocative and sometimes we can across
that edge as well
the best entrepreneurs have got to find
a way to do things differently to how
other people are doing things we've got
two very simple tests that we apply to
everything that we do so the first test
is
this is the worst public health crisis
for a generation
i've only ever
been in tears once
in my job and i broke down in tears
addressing our team in march of
2020
thinking that we're not going to be able
to pay you we're not going to be able to
keep you in a job
i think people don't realize like being
a ceo is a very very lonely job at times
[Music]
that day
talk me through what it's like to be a
ceo when 300 people sign a letter making
these allegations about toxic workplace
culture unfair dismissals all of this
stuff
so without further ado
i'm stephen bartlett and this is the
diary of a ceo i hope nobody's listening
but if you are then please keep this to
yourself
[Music]
james
what is the you've listened to this
podcast before so you know i have a
theme of where i start i'm like trying
to frame as a surprise that i'm going to
start with your childhood but
um first thank you for being here it's
um you know it's always lovely to hear
that people are um guests that we have
and also kind of understand the format
where i wanted to to start with you is
to take you right back because that for
me is always the context of of somebody
so when you when you look back and when
i read back at your early years in that
small fishing community you grew up in
um was it garden stone yeah garden stone
up in the northeast of scotland when you
when you look back yourself at the
foundational shaping um pivotal events
of like those early years that are
responsible for who you became in your
life the first events that you look back
and go that's the first dot i can
connect what are those
i think there's i think there's a few so
grew up in a tiny fishing village
northeast of scotland my dad was a
fisherman my mum was a school teacher
and being a fisherman is tough and i
just remember like the kind of hard work
ethic instilled from my grandparent who
was a grandfather who was also fisherman
my dad who was a fisherman so kind of
really hard working really honest kind
of salt of the earth type character but
then he was always away and i'd be at
home with my mom and my relationship
with my mum was was never that good and
i think i struggled a lot when i was
when i was a kid
um i had quite a severe speech
impediment when i was when i was growing
up and and this is something i haven't
spoken about before so
um so that kind of always made me a
little bit of an outsider a little bit
of a loner
always felt a bit socially awkward as i
grew up and became a bit older i had
quite severe acne so again outsider
loner socially awkward and i think it's
a trait that a lot of entrepreneurs have
in common they're a bit socially awkward
and i think if you're less likely to
read social cues then you're less likely
to do the same thing as everyone else
which in business is amazing
um and also a bit of a inadequacy
complex when i was a kid as well so kind
of mum's standards were quite high so
whatever i did wasn't good enough 98 in
the test why wasn't a hundred when uh
someone competition why did i win it
with an even better times like any
achievement wasn't quite good enough so
we're going up a bit of a loner bit of
an outsider a bit of a kind of
inadequacy complex as well which i think
from a business perspective those things
combined are good but
made it kind of quite tough for me at
certain stages of my childhood on that
point of i can relate a lot a lot to a
lot of that um
especially the the i the thought of
feeling a bit like an outsider feeling
somewhat different were you bullied in
school
a little bit i mean the speech
impediment was something that all the
kids love to make make fun of and then
the kind of acne that i had that was
quite severe in high school was
something that like has made fun of as
well which just kind of makes you feel
even more like an outsider when you're
growing up i guess speech impediment
yeah when i was like four five six seven
eight there was like certain words and
certain letters that i just couldn't say
and i kind of worked really hard with a
speech therapist and got there but for a
few years it was a lot of words i
couldn't say and because of that i just
wouldn't speak to people because i was
scared to let them see that i had a
speech impediment so very quiet very
insular like spending time by myself and
that kind of shaped a lot of my early
childhood i would say when you said that
you think entrepreneurs have that trait
in common where they somewhat feel like
outsiders
why do you think that's a common trait
in entrepreneurs
for me the best entrepreneurs they've
got to see things differently they've
got to find a way to do things
differently to how other people are
doing things so if you go and do the
same as everyone else you're just going
to get the same outcome as everyone else
and if you start off a business that way
you're just going to get lost in the mix
and i think 90 percent of small
businesses fail within the first two
years so
i think outsized returns or doing
something amazing with the business only
comes when you bet in some way against
the conventional wisdom and if you're
not tied to the conventional wisdom or
tied to social cues i think you're more
likely to see that and there's a quote
that i love which is if 99 people think
you are wrong you're either massively
mistaken or about to make history so
it's just that
maybe not caring too much what people
think and finding your own way to do
things and finding your own way to come
out of business an opportunity or a
problem and i think if you're a bit of
an outsider it maybe helps with that
you mentioned your mum as well
yeah i mean my relationship with my mum
was was always quite tough so nothing
nothing was ever good enough for
her mum when i was a kid and had a few
issues later and i haven't spoke to my
mum for over 20 years now really yeah
since you were
in your teens yeah in 1920s when i
stopped speaking to mum did you ever
because sometimes when i think about you
know my own parents
i with with age i've built a bit of um i
guess empathy towards why they are the
way they are
you know and you kind of when you grow a
little bit older you understand the
world a bit better in psychology but you
go well maybe that's why they were the
way they are have you thought about that
with your mother yeah i definitely have
thought about it and uh
it's something i continue to think about
there was just a lot of kind of
challenging things when i was a kid and
when i was in my teens that i think it
made it difficult for us to have a
relationship and for me it's
it's easier just not to not have contact
with her which
which is tough but i've got a fantastic
relationship with my dad and my rest of
the family and it's been that way for a
long time now did that have an impact on
you that that sort of really tough
feedback that you could you were never
enough for that your work was never
enough
possibly but i think it just
i think it gives you a bit of a
inadequacy inferiority complex which i
think has kind of been with me for it
for a long time
and there's ways to to numb it so can
numb it can numb that voice in my head
that's like
never been good enough not good enough
can numb it with a business achievement
with like doing a thing with a book
launch that goes well so you get that
almost temporary escape from that
feeling
by doing something that can be measured
objectively like succeeding in business
use the word temporary though
it's always there and i think a chip in
your shoulder in terms of like
motivation is
is quite a powerful thing to have
but it's that kind of saying it's like
everywhere you go there you are it's
kind of always always there at a certain
extent your dad
he he sounds like he was a very um
hard-working
individual he he was indeed i mean still
to this day he's in his late 60s he's a
lobster fisherman which is a kind of
tough intense i've seen the
early job every single day regardless of
the weather in the north atlantic he's
like pretty much out in his lobster
fishing boat so
yeah very focused on work and that work
ethic
that
determination i think a bitcoin
resilience as well so i spent actually
six years with my dad on the north
atlantic before i set up the business so
i studied law and economics at
university i got a job in a legal office
i quit after two weeks so i sat there in
a cheap suit doing glorified admin and i
was like this is just not how i want to
spend my life i don't want to stay in
this office and i saw myself like being
maybe 40 50 years in the future kind of
retired and sitting in that same office
in a suit and stuff i was like this is
just not for me so i spent four years
studying to do a job for two weeks i
quit and did something completely
opposite so i got a job in the fishing
boat and when i was doing that i went to
nautical college part time i became a
first mate i became a qualified captain
and i kind of cut my teeth in the high
seas in the north atlantic and i think
it taught me so much about
resilience about teamwork about
adversity what did you what did you what
did you learn then sort of it
practically inactionably what did you
learn from was it five years roughly you
spent on that boat yeah so you come out
of university you try it out as a lawyer
you're working in laws for for two weeks
yeah then you go and join your dad yeah
and eventually you work you up to being
captain
on that boat yeah and you're on a
trawler in the north atlantic yeah which
is
a stupid thing to do if you're me and
you're as big of a coward as i am going
out on those seas i've seen the
documentaries is it like the
documentaries yeah it's very much like
those documentaries some of those were
made in my homeport up in scotland and i
know some of the people that were on
some of those boats so i mean very much
like that the north atlantic in january
and february is a
pretty scary place what did you learn
from doing that
about life in people
i think the main lesson that i learned
is
and it's when i've applied to the
business as well you only really see
what someone's made of when things are
difficult
it's only when
things are going wrong it's maybe a
first-hand storm you're trying to get
the net back in the boat it's dangerous
it's early it's two o'clock in the
morning and everyone's been up for 24
hours it's at those times that you
really see what someone's made of and i
think that's something you can take to
business as well
when everything's going well it's easy
for everyone in your team to look like a
superstar it's only when things are
really really difficult that you see who
can you depend on and i've almost got
this test that i use when i'm building
my management team and we've got an
amazing management team at the moment
but the test is would i want to be in
the deck of a north atlantic fishing
boat at two in the morning in a storm
with everything going wrong with this
person by my side and if the answer is
yes
it's usually kind of bodes well for how
we work together and how we look to
build build the business together and on
in that example of what i want to be on
this on the deck with them at 2am in the
morning when everything's going wrong
what other character traits which would
make someone in that situation a good
person to be with on that deck
yeah there's something called the
stockdale paradox that i think is is
really important and kind of ties into
this so james stockdale was
an american naval captain who was no
prisoner of war camp for six years
and uh it's actually in the book good to
see by jim collins which is a fantastic
business book
and he's got a philosophy which is
you've got to confront the brutal facts
of your current reality without ever
losing faith that you're going to
prevail in the end and i think it's just
such an important lesson for life and
business you've got to believe that
you're going to get there in the end but
that belief can't blind you from
tackling the most difficult things about
your current reality head-on
with resolve with optimism but you've
got to kind of hold that paradox in your
in your hand we're going to get there
we're going to achieve this thing but
we've got these huge challenges at the
moment let's lean into those challenges
and i often start my business meetings
with my senior team in the very same way
okay let's put the agenda at the side
let's everyone write down a piece of
paper what's the three most difficult
things you're facing in this business at
the moment and let's discuss those
before we discuss anything else and why
is that important
because it means you face into the
problems and the challenges and i think
it's so easy for a business especially a
business like ours we've always got so
many exciting projects at the moment
we're opening a fantastic location on
the strip in las vegas we're opening
um 20 plus locations in india we've got
a fantastic location opening in waterloo
station so it's so easy to get caught up
in the excitement of those things
and everyone wants to speak about the
exciting things but you've got to
balance that with okay we've got these
challenges at the moment
and how we lean into those challenges
how we tackle those challenges
is what to a large extent it's going to
determine our destiny so we need to make
sure that's why else we're focused and
exciting things and what we want to
achieve we're focusing on the really
tough things we're facing in a
day-to-day basis as well
interesting i might steal that
but i stole it as well
steal the thing
did i say that out loud
i thought i was thinking it um
yeah so i um
you're right because there's always kind
of an elephant in the room at companies
where many individuals in the room will
know that there's certain challenges and
issues especially in the leadership team
they'll have the clearest idea of what
those are but
sometimes they're quite uncomfortable to
talk about right they are the things
that are least enjoyable to commit brain
time and power and resources too so
i guess that's a very smart way you you
spent you spent five years on this boat
yeah which was a really
great you know
brave thing to do in my in my estimation
your captain of the boat
yeah i spent a bit of time with captain
in the boat with my guys
why
why did you leave that that role
well i didn't i didn't quite leave it so
um
martin who's my best friend from from
high school we go way back we're taking
mates yeah martin dickey we're flatmates
at university together we started making
beers at home
and so in martin's mom's garage we would
make beer and we started to get into
beer when we tasted an american beer
called sierra nevada pale ale we tasted
it it was like wow we love this so we
would dedicate our weekends to kind of
trying to recreate that in martin's
mum's garbage and in 2007
we'd always wanted to start a business
we decided to turn our hobby into a job
so we we got a 20 000 pound bank loan i
had 30 000 pounds of life savings and we
decided to set up this business we set
up in a derelict dystopian industrial
unit in fraserburgh in a god forsaken
industrial estate and with no money so
it was
beg barter bootleg to kind of set this
facility up we had like old dairy tanks
our water tanks were plastic tanks from
a local garden center because with no
money to buy stainless steel tanks and
we set out in this slightly naive i
think you could call it mission to build
one of the world's best beer companies
with that with two humans and a dog no
experience no capital no business plan
nothing but just a huge amount of
passion for a fantastic beer a huge
amount of disillusionment at the status
quo of the beer market which was
essentially just big mass market global
mega corporations who turned
beer i think that we love in a lowest
common denominator comedy commodity
product and we wanted to make fantastic
quality beers and opens open people's
eyes to this
diverse spectrum of flavor taste quality
that they never knew existed and take
them on this beauty journey with us and
that's what we set out to do in 2007 but
the first the first few years were so so
tough what gave you the right to start a
beer company
nothing at all you can't make i can't
make beer
how did you go about educating yourself
and how to make beer
so martin studies how to make beer and
distilling at university so martin's
they're really kind of solid technical
background and he's always kind of taken
more of a lead in the beer side the
business and i've always kind of been
more in the kind of business side the
sales side the market inside the
expansion side of the business so yeah
first couple of years it was me selling
beer at local farmers markets and
selling beer out of the boot my beat up
volkswagen golf but we couldn't afford
to pay ourselves so i moved back in with
my dad martin moved back in with his mum
i had to start working in the fishing
boat again part time just because
nobody wanted to buy our beer everyone
told us make sure bear cheaper make your
beer with less flavor make your beer
with less hops change your name change
your packaging
and we didn't listen to any of that i
mean we were determined to okay if we're
going to fail let's fail doing something
that we love let's fail doing something
that we're insanely passionate about and
let's just keep going and see if we can
find
a way find our breakthrough to somehow
make that work and that breakthrough for
us came in 2008. and you you described
that period as being one of the toughest
of your life that first year
give me a a detailed flavor of the the
hardest is there a moment in that period
where you you account maybe your hardest
day
i think so yeah so
we did everything the two of us so it
was just the two of us so we did the
accounts we did the sales we made the
beer we packaged the beer like the whole
thing and we filled bottles by hand so
fill by hand put on a cap by hand
putting a label by hand the tanks held
about three and a half thousand bottles
of beer so that took us kind of 20 hours
to do so we did that
and then
straight through the night the next day
i was kind of okay let's go and see if i
can sell some of this beer so i had a
few cases in the back of my car punk ipa
which is our flagship here today was
that was the beer that we were trying to
sell back then as well i visited six or
seven different local establishments and
gave them my best sales pitch it's
handmade it's local it's full of flavor
everyone said no
the last person and didn't just say no
he tasted it and he just spat it back
into the pot
and just gave me the bottle back and
essentially told me to get out so i
remember just walking to the car and
just wondering okay what the hell am i
going to tell the bank we've got this
loan we can't pay the loan back we can't
pay the rent in the building
i've been up for almost 30 hours
this is going nowhere like what can we
do to try and get this business to
survive and for me that was a that was a
very tough moment why didn't you quit
would have been easier i could have just
gone back to the boat could have been
captain back out on the sea lobsters all
that
there was no way we were going to quit
why we were we were going to die in a
ditch for this thing it's
we're just so passionate about it and
back to that inadequacy complex this
voice in your head you're not good
enough you can't do it if i quit that
voice wins couldn't let that voice win
so we kept on going we kept on going and
i think any business story there's
a moment where you get a bit of luck
where you get a bit of good fortune so
for us that came in 2008 we sent some
viewers into a tesco beer competition so
this was at a time that we were selling
let's say
10 cases a week at most
sent the beer to the tesco beer
competition kind of forgot about it and
got back to local farmers markets and
all those things a few weeks later i got
a phone call from tesco saying that we'd
finished first second third and fourth
in this tesco beer competition so it's
like okay
so i went down to wait is that the same
day that the guy spat out same beard the
guy spat out first came first
came first the same there the same same
temperature
i think so
that's interesting
so i went down to went down to chessunt
which is where the tesco headquarters
were at the time and met the tesco team
and i sat there with my best poker face
on is they told me james your beers are
fantastic we want to put these four
beers into
500 stores nationwide and we can sell 2
000 cases a week
so i signed a contract to do that
without telling them anything at all
about the fact this was two guys and one
dog filling bottles by hand and there
was no way we could there's no way we
could make that order so we had four
months to figure out a way to do this so
got back sat down with martin it's like
okay we've got this opportunity but we
need a plan
and we decided okay we need a bottle
machine that's gonna cost us a hundred
thousand pounds we need tanks that's
gonna cost us fifty thousand pounds so
went to the bank which was bank of
scotland who we banked with at that time
and this was 2008 so this is when global
economy is going into this huge tailspin
and we sat down and like okay let's
let's pitch this as hard as we possibly
can this is our chance so we told them
about the contract with tesco young up
and coming company but we need a hundred
thousand pounds for a bottling machine
50 000 pounds for tanks and they just
laughed us out of the bank there's like
james martin you're not paying your loan
back
it's a tough time for bank and there's
like no way we can give you this money
here so undeterred what we did we went
to the bank that was across the the
streets we got an appointment there with
hsbc and we said to the guys at hsbc our
bank bank of scotland have just offered
us an amazing finance deal in this
bottling line in this fermentation tanks
we've got this contract with tesco but
if you match this deal we're going to
shift all of our banking to you we're
going place as a company we'd love for
you to support us and they they gave us
the money so business plan year one and
two was make happy american beers and
tell lies to banks are they still are
they still your bank they are still our
bank to this very well
doing that um
i waited ten years until i told them
until i told them the truth i thought
there's like a safe amount of time
they're not going to take the money back
uh we got we got the bottle machine in
we got the tanks in uh the first beers
came off the bottom line two weeks
before they were due to go into tesco
and we got the beers in the tesco they
sold okay
year one year two they sold a bit better
and we were able to kind of start
building our business from there that
gave us a foothold and at the end of
2009 i was able to quit being a
part-time fisherman and just focus 100
percent by 2009 end of 2009 two years
two and a half years wow
and so that that
that first year where they're selling
okay and in the second year but they're
selling much better yeah what was the
causal factor of that sales increase
that started to get the thing get things
moving was it word of mouth was it
marketing was it it was it was community
so one of the most important things in
the history of our business has been
community so it got to it got to 2009
and we'd exhausted the money we could
get from banks regardless of what we
said but we are a capital intensive
business so we need money for stainless
steel tanks to expand and we were
expanding quite quickly at that stage
and it was how can we get money to
expand our business and we spoke to some
potential investors but it just didn't
feel like the right fit for us as a
business
so in 2009 we came up with this concept
that we called equity for punks yes so
this was crowdfunding before
crowdfunding was even a thing and we
thought okay if we can sell some of our
business to the people who enjoy the
beers that we make we can hopefully
create this whole new business model
we spoke to five legal companies up in
scotland and they all told us what
you're trying to do is essentially
impossible you can't you can't do this
spoke to a sixth company it says okay we
can maybe do it but it's gonna cost 150
000 pounds there's a lot of risks
nobody's done this before
we decided to do it it cost us 150 000
pounds at a time that we'd 50 000 pounds
in our bank account so we gambled the
entire future of our business on making
this completely untried untested
business model that we just came up with
called equity for punx a success
i was so nervou like the day that we
launched equity punks
it's the most nervous as i've been in
this business journey because i knew if
it doesn't work
like game over for us a business so many
people told us it was a bad idea so many
people told us people are not getting by
shares in a company on the internet
people that don't want to invest in a
beer company people just want to buy
beer this is a silly idea there's too
much paperwork people's not going to
send in checks which they had to do back
then as well as as opposed to with some
online payments but those were
cumbersome so most people paid by cheque
but
we wanted to do something different and
with equity punks what we've been able
to do is shorten the distance between
ourselves and the people who enjoy the
beer that we make so we don't just have
investors we've got community we've got
advocates we've got ambassadors we've
got people who believe what we believe
who want us to succeed and who are on
this journey with us
the first equity punks was
enough of a success to keep us in the
game we raised 500 000 pounds from about
600 600 investors but since then we've
gone on to build a community of 210 000
people and we've raised almost 100
million pounds through equity punks and
for me it is
the most special thing about our
business so the largest shareholder in
our business is equity punks and our
team which i think is really cool so we
are community owned we're people owned
and having that community with us
who then when they walk into one of our
bars they feel like they're walking into
one of their their own buyers when they
buy our beer off the shelf they feel
it's their own beer because they're part
owner of that company so completely new
business model for a consumer around in
the 21st century one that takes our
consumers with us and that community
element is amazing they're our biggest
fans they're our harshest critics we get
fantastic feedback from them they help
us find new locations they help us
develop new beers and equity punks has
been key to what we've done as we sit
here in 2020 one of the biggest words in
marketing is community now yeah
and you've kind of detailed that i was
going to ask you but you've detailed
very clearly the value of community um
and the equity punching when i when i
read that i think okay it's one way to
raise money but there's other ways to
raise money but it's really more about
getting
greater buy-in from your existing
customer base and turning them into
advocates and to die hard which is
increases loyalty it gets them to
evangelize as you say when they buy beer
they're basically it's almost like
there's a discount on that beer i know
there is actually a discount as well but
there's actually a discount on it
because they're enriching themselves so
it's a really
interesting innovative model is that
similar to what like crowdfunding equity
crowdfunding is today
before this very similar so this was
before but it's very similar to what
that is today and i think you've
articulated what the model is perfectly
and for each of our beers that they
drink because when the company they get
a tiny little bit better off financially
which is an amazing incentive to have a
second kind of hazy jain or elvis user
punk ipa on a tuesday and a tuesday
evening
and it's never just been about the money
because we could have raised money in
other ways but it's about building a
different type of business and a
business that's focused on community and
we do so much with our community and we
have our big agm and aberdeen our annual
meeting yeah um last time we had 15 000
equity punks come for our annual
meetings i think it's like the most
attended atm in the in the uk yeah so we
do the business things we've got
fantastic live music we've got amazing
beers and it's just the day where can
everything that we love and believe in
just comes together in one day and it's
always fantastic on money raising did
you you the bbc released a podcast you
might have seen yesterday like a podcast
on the you know i know you've had a sort
of contentious relationship with them
one of the things that they they leveled
at you which i wanted you to respond on
was in those hard times they said your
dad is wealthy yeah yeah so they said
there was a
a suggestion that your dad might have
been loaning you money yeah and so my
dad my dad is wealthy-ish not
excessively wealthy and not nearly as
wealthy as the bbc said and the only
support my dad ever gave the business
was there was a period where one of the
banks wanted to withdraw a loan and he
secured that loan for us for six months
until we got moved over to hsbc so we
were kind of very determined to do the
whole thing ourselves so the only
support was ever the short-term security
on a loan until we moved it
quick one we bring in eight people a
month to watch these conversations live
here in the studio when we're here in
the uk and when we're in la if you want
to be one of those people all you've got
to do is hit subscribe
and then like going going to your your
marketing thesis because this is really
what's defined um
brewdog in the eye of the consumer in
the eye of someone like me that doesn't
honestly drink beer but knows about the
brand and considers that it to be a
famous brand and watched it on linkedin
and social media over the years build it
sort of a claim what is your like your
principles that underline your marketing
thesis because your marketing thesis is
very very different to
pretty much nearly all brands in this
country there's maybe a 0.1 percent that
maybe you've copied or that have been
inspired or that you know
chicken and egg i don't know who came
first but it's a very unique thesis
towards marketing what underpins it
we've got two very simple tests that we
apply to everything that we do from
american perspective so the first test
is would or could another business do
this thing
and if the answer is yes we've got to
seriously consider why we're doing it
the second test is
if i spend a pound on this is it going
to give me a 10x return compared to how
a competitor would spend that pound so
we are in an industry dominated by
global behemoths of businesses who are
hundreds of times our size and we are
we're closing that gap and we want to
close that gap but we only close that
gap by making our market and our
communications everything we do work so
much more effectively than theirs
if our marketing is only as effective as
theirs we don't close that gap and we
lose so the two tests are could or would
another company do this and is it going
to give me a 10x return versus how my
competitor would spend that money and if
i'm thinking about how to get a drive a
better return on marketing you know and
then i think about what you've done i
see well we've got to be probably bolder
to win share of voice we've got to try
and win headlines in more extreme ways
because nobody's going to be writing
about you for
for the fun of it if you're a smaller
sort of challenge challenger brand then
the second thing i i think is kind of
we've got to
do that on new platforms we can't fight
out on tv or in newspapers because those
are where you kind of throw huge amounts
of money and you get uh return so new
platforms and new approaches and that's
very much kind of signifies what i've
seen from brewdog very very bold
very bold and intentionally bold and
especially bold in our early years when
we had no budget whatsoever so the
challenge was how can we get our name
out there with no money at all so we had
to do things that were intentionally
provocative that we're on the edge and
sometimes we can exhaust that edge as
well but that enabled us to get our name
our message our business out there with
no budget at all so we have driven a
tank through the streets of london we've
thrown
taxidermy cats out of a helicopter over
the bank of england we've put vladimir
putin in the front of a beer label so
we've done a lot of things low budget
high impact but we've tried to make it
that everything we do
ties back and is underpinned by what
we're passionate about so it does so
there has to be a connection there so
does this reinforce what we believe in
what we're trying to do as a company
because otherwise it's just hollow and
it's fake and it's false so how does
this reinforce the kind of core beliefs
that drive this business
which is try to build an alternative
business and a huge passion for
fantastic beer one of the more extreme
things i saw the vladimir thing uh what
else have i seen i think to be
because i'm obviously a marketeer so and
running a marketing company and seeking
inspiration from lots of different
brands and seeing what they're doing and
the impact it's having especially on
social media which is my my battleground
um the the thing i read about more
recently was that you you put in a
complaint about your own beer
which triggered press we did so this was
uh all the way back in 2008 and we had
a few running battles with a few bigger
players one of them was the pokemon
group so the portman group was an
industry still as an industry regulator
and for me it is a thinly failed cartel
funded by the big drinks businesses who
have got a vested interest in making
sure that small businesses are not
successful and there was a few duelings
at the park that were just so so
silly
and frivolous that we wanted to make a
statement so we complained about one of
our own beers to make a
meta statement about how silly the
process is and how essentially corrupt
it was as an organization funded by the
big beer companies big drinks businesses
who've got a vested interest making sure
the small ones are not successful how's
that like so you make a beer that is
really high in avb is that was that the
correct term it was yes so we made a
beer we made a beer called tokyo 18 now
if you looked at the newspaper headlines
in the uk when we launched that beer you
would have thought that i was
single-handedly responsible for the
downfall of western civilization by
making an 18 beer we had it in the sun
binge drinking blame this man with like
a cut out of my head in a bottle of
tokyo that took a bit of explaining to
my very religious grandmother but that's
another story that everything we did
with that beer was we just made a
thousand bottles it was very expensive
it was for connoisseurs it was for
aficionados and we want to elevate the
status of beer and i think the more
someone can understand and appreciate
something the less likely they are to
abuse it and we make expensive
products for people who love love
fantastic beers so it was to kind of
make a statement of
you've got all these big companies doing
very cheap alcohol that's likely to be
abused
we're trying to ban products of this
company that's looking to elevate the
status increase education awareness
around beer and lead people to
appreciate and enjoy beer in a more
elevated way
and when you see yourself in the sun
with a cardboard cut out of your face
is that
kind of swings in roundabouts is that
good
in from a marketing perspective is that
a good outcome because you were trying
to get headlight you complained about
your own beer yeah you were trying to
get headlines so is that job done
i think in that one to a certain extent
it was it was job done and to kind of
show you how
odd things were back back then so this
was kind of 2009 2010 when we were
starting to get momentum and the beer
scene was starting to change so the big
companies had it their own way for way
too long and things were starting to
change
there was a award ceremony in scotland
in 2010
um
put together by the bi the british
innkeepers institute
and we've got a heads up before the
award ceremony hey guys you're going to
win the award for scottish bar operator
of the year so you guys better come to
the come the awards ceremony so we went
there we booked a table they were just
about to announce i was like halfway up
to the stage to get the award and they
announced a different company i was like
okay
but then the other company didn't want
to take the award because our name was
engraved in the trophy he was like well
we don't want it so the next day i spoke
to the person that organized the awards
ceremonies like what what happened like
you told us we were going to win
and he was like well diago one of the
world's biggest drinks companies they
were the main sponsor they told me five
minutes before i would give it to you if
they gave it to you guys they was going
to pull all future sponsorship you're
joking so we felt we didn't have an
option so we put this online it blew up
it was trending on twitter globally that
day diageo issued us a formal apology
about the whole thing and that apology
was kind of broadcast news but it just
showed back then
how the dynamic in the beer industry was
changing and how the big beer companies
and big drinks companies were acting
towards that change of which department
was one manifestation of it did you take
that personally
i took that as a sign that we're doing
the right thing so i think
unless other businesses are copying you
are trying to knock you then you're not
doing well enough so unless you're doing
something that's worthy of
people copying it and like a lot of
people moan on being copied it's like
unless you're being copied you need to
up your game and you need to do better
unless your competitors are trying to
knock you down you're not enough enough
of a threat to your competition so i
took that as a sign that we're on the
right track we're doing the right thing
let's keep going the the other
extreme marketing thing that i saw which
was um when i first read i thought this
is [ __ ] hilarious is the elvis estate
tried to copyright uh infringe you for
calling your your us beer which i think
is your most popular usb it is elvis
juice elvis juice yeah they sent you a
copyright uh statement just sort of like
a
basically a notice that you you're
violating a copyright yes and you
responded with some elvis uh rhyme we
did and and on the on the art on the
linkedin post that i saw it said you
changed your name to elvis yep then the
bbc come out and say that didn't happen
yeah
what is the truth in this one what did
you change your name to elvis yeah we
did and just to go kind of back in the
story so elvis sent um not elvis himself
um elvis's estate
sent us a letter saying we couldn't use
the name elvis and a beer and if we did
we had to pay them a license fee for
every can case and bottle of beer that
we sold so what myself and martin did we
changed our names to elvis and we sent
them a letter back saying that they
couldn't use our name on their music and
they had to pass a licence fee for every
time they played one of one of elvis
songs um got a huge amount of publicity
at the time we were both elvis for a few
weeks
and then we changed their names back so
the bbc
attacked us on that as they have on many
things
however the bbc misunderstood the
scottish procedure for changing the name
so they said we didn't change your name
by deadpool that's not a scottish thing
in scotland you need an official
declaration to change your name which we
did so what's that just signing a piece
of paper you sign an official
declaration piece of paper and that
counts as a name change in scotland and
you don't even have to send it to
anybody don't have to send it to anyone
scotland so we met the scottish
requirements which is what we said we
did
but yeah my grandmother was very unhappy
and she insisted i changed my name back
to back to james brewdog's marketing has
been so bold and it's been so standout
and in terms of how hard you've in terms
of the the return on every dollar you've
spent it's it seems to have been a
pretty astounding return per dollar
spent because you've done these like big
viral activations a lot of them are like
um
parodies or they're like taking the piss
of big corporations or they're sticking
it to the man in various ways or going
at the you know the incumbents in the
industry
some of them know that they
the even the example you gave there of
they're complaining about your own beer
with the pork root yeah yeah
obviously the complaint wasn't real yeah
because it was you because it was me
what is the line between between like
truth in when you're doing these stunts
and virality
and
uh untruth for you and where where do
you play
are you willing to to do something that
is from a marketing perspective that is
not necessarily true like complaining
about your own beer if you believe it'll
help reach the outcome which is to stick
it to the portman group
yeah well i think with that one it
wasn't necessarily untrue because
afterwards we said we made this
complaint so it was us who disclosed the
fact that we made the complaint that you
were triggered okay and we disclosed
that to just show how ridiculous the
system the system was so
if we hadn't said it was us that
complained about it then i would accept
that was being a bit dishonest but the
fact that we came out and we said hey
the system fundamentally doesn't work
and we wanted to expose that by making
this complaint was what we intended to
do there when we first started talking
about marketing one of the things you
said was um
we made a lot of mistakes yeah took
things too far yeah what did you take
too far
in hindsight now
now that you're a big global brand and
everyone is you know looking back at all
the steps when you weren't so big yeah i
think the mistakes that we've made in
marketing is when
we've tried to do something which is on
the edge earth which is controversial
which needs explaining
so if you look at the thing in its
totality then it is potentially a
positive thing but if you only see a
snapshot of it then your take away from
that could be negative so i think a lot
of the mistakes that we made from a
market perspective and we did some
amazing things but we did make some
mistakes was when
we got too clever with the concept and
the intention behind it which was
genuine got lost so a famous example of
one of the mistakes that we we made in
marketing and for international women's
day we wanted to highlight highlight the
gender pay gap and this was a project
that was put together by some of the
fantastic women we've got in our
business and we made a beer called pink
ipa that we always get sell 21 percent
cheaper to women to highlight the gender
pay gap which was something that we felt
passionate about
and then the proceeds from sale of that
beer went to charities which helped
women and women's pay in the workplace
and these kind of things but then what
happened was people just saw pink ipa
and it looked like we were it was the
beard itself was a parody of products
which market themselves towards women
but then it just looked like another
product that market itself to our women
and if anyone like dug into it and
understood okay this is to highlight the
gender pay gap and they're doing some
good with the money and they're chasing
your cause people just saw the pink ipa
they saw the image and came to the
conclusion that we're just doing the
thing that we were going to fight
against and that was a key key learning
that people just see a snapshot of a
thing
so you need to make sure that all of the
message that you want to land is in that
snapshot because a lot of people's not
going to dig deeper into what it is
what i got from that was that like
you've got to create a marketing
campaign where the context is sort of
can't be separated it can't be separated
from because it will be separated if it
can be exactly 100
um
coming from being the captain of a boat
to being the captain of brood dog quite
literally that is your job title
um
what adjustment was needed because on a
boat
when you're up all night and there's men
there and you know you've got a
screw your screen was it was the
give me uh a snapshot of what the crew
were like on a boat a troller
so a lot of my best friends to this day
are the guys that i worked with on the
fishing boats
but these are
an unusual and interesting set of
characters as well it takes a certain
type of person to
kind of do that type of do that type of
work and do that type of work on an
ongoing basis and
i mean they're they're they're hard
working
like to have like to have fun like to
mess about a little bit but all about
the kind of all about the hard work and
especially when things get difficult
like seeing a good
drew and a fishing boat come together
and work hard to get them kind of
through a tough time together was kind
of really inspiring when it came to like
business and leadership can i let her
down the line i can see you being a very
good captain on a boat you and i just
generally you're you in a couple of
moments you know i didn't know you
before you'd walked in the door but in a
couple of moments that i've been with
you you're very
focused
and you're someone that i feel like and
i don't know you but you feel very
resilient
and
then you you add that to the fact that
this is your business
and you said before i think you said it
in your book that no one will ever love
the business like you do
you being so hard working so out of
balance in your own life as you've
described
how do you not then
have that expectation on others because
this is something that i honestly i
struggled with
i struggled with especially in the early
years of my business was understanding
that i was a bit [ __ ] up
and that in fact everyone else was
normal and i needed to understand it
goes back to me saying about the dark
side and the cost of my childhood and
the insecurities i was a bit [ __ ] up
so how did
how do you contend with that
for the first 10 years the business i
would say i contended with that very
very badly so
there's like a lot of intensity there's
a lot of
drive there's a lot of determination
there's a lot of passion there and
understanding how to
lead people how to take people with me
on that journey has definitely evolved
over time and i'm now ceo of a business
that's got 3 000 people
before that i maybe managed a handful of
people in a fishing boat but that is it
so it'll go from like no experience and
being a ceo no experience as being a
leader to managing 3 000 people at this
speed and add in this meant like this
year well last 18 months cumulatively
we're going to add a thousand people to
the team so it's like a thousand amazing
well-paying jobs in a recession which
our country which our economy needs so
we're expanding all the time but just
how steep that learning curve is
to go from not managing anyone to
managing 3 000 people with all the kind
of stresses and strains of growing a
business and i think if i look back and
reflect a little bit we've definitely
had challenges and well-documented
challenges along the way
and
we've had periods of such intense growth
that we maybe haven't focused enough on
our people in our culture during that
period and as a leader i've always just
been so focused on building something on
delivered an exceptional value to our
customer and making sure every time
someone opens one of our beers or visits
one of our buyers the experience is
amazing and knowing that if someone is
choosing to spend their money with us
they're making a choice to do that
versus one of our competitors therefore
we need to set the bar incredibly high
and push incredibly hard
and
as a leader because of that drive
because of that determination because
that focus i've definitely pushed some
of the team members too far in the past
and i think that's been that's been well
documented but that came from a place of
doing this because we want to build
something amazing and it took a bit of
time to understand that okay they're as
amazing as their team are they don't
have the same level of investment in the
businesses as i do right some of them
want to push it that hard some of them
just don't and for a while there was
just like i'm going to run through this
wall and i want everyone else to run
through the wall as well
not everyone's going to run through that
wall and again a big lesson and i've
kind of reflected a lot on leadership in
the last 12 months is
to take people with you you've got to
make them understand the why behind what
you're doing and making a first decade
of a leader is like we're doing this
this is what we're going to do let's go
and what i've kind of found more
recently is like if people understand
okay we're doing this but this is why
this is what it means for you this is
what it means for the business this is
why it's a fantastic thing this is why
it's going to help us achieve objectives
where everyone's going to win together
it's much easier to take people with you
on that journey whereas in the first 10
years i was just like go interesting
that's such an important lesson because
you know in the example you gave there
on in one hand you would like dragging
people and all the studies show across
all industries that when people don't go
voluntarily it's it's burnout it's
pressure it's stress it's you know and
then when what you've said there is
leadership is in fact inspiring them to
come with you yeah and when it's
voluntary in terms of they know why
they're going and they want to go then
all the psychological implications
across multiple studies that i've read
about are significantly improved you
said you've been on a leadership
evolution
so speaking honestly what has that
evolution been from when you started as
a leader and the business it starts to
explode to the person that sits here in
front of me today what have you had to
work on and remove so it absolutely
still is a journey and i absolutely
believe that i can get better as a
leader and i think one of the most
important things i've done in the last
12 months we appointed an amazing um
independent non-exec chairman and alan
leighton who's run some fantastic
businesses so much experience so having
someone there who's like a mentor to me
because like if i hang out with my
buddies they want to speak about
football and golf and
that kind of stuff they don't want hey
i've got this kind of leadership channel
it's like they don't care which is which
is amazing but then being a ceo is a
very very lonely job at times
and like incredibly lonely and
there's another quote that i love um
from ben horowitz author one of my
favorite business books and it's like
the first rule of ceo psychological
meltdown is not to speak about ceo
psychological meltdown so i think people
don't realize like
being a ceo is fantastic but it's lonely
it's it's intense it's it's difficult so
having allen's kind of help and guidance
through that journey i think is really
important and i would say in the early
years the business i managed it like a
captain would manage a small team in a
fishing boat
whereas now i'm looking to evolve my
leadership style into
a ceo of a kind of medium to large
company which is
a bit less intense which is maybe a bit
less demanding but which is more about
taking our people with us on this
journey so here here's the we're going
to do this and it might be tough but
this is what it means for us as a
business this is why we're doing it but
then also making sure that incentives
are very much aligned making sure that
okay we want to create a business model
where we went together
as a company which i think is really
powerful and we've always wanted to
build a radically different type of
business a business that rejected how
things were done and what big business
was as usual and it's been key and i
think if you look at we're community
owned we're the world's first carbon
negative beer business
and the new things that we've launched
with our people it makes us a
fundamentally and radically different
business so we've recently launched the
blueprint which is i think the biggest
most important announcement in the
history of our business so firstly i
decided to give almost 100 million
pounds of my own equity in the business
to the team so it's over the next four
years but that means each salary team
member receives 120 000 pounds worth of
equity and that's in the valuation today
so if we double in size then that could
be significantly more and that's about
recognizing like we are all in this
together we want to win together we want
to work hard to win together and it's
about
incentivizing our team to act like
business owners but rewarding them like
business owners the second part of that
was we wanted to create a
completely new model for how a
hospitality business works so we've got
over 100 amazing hospitality venues all
over the planet
each of our buyers now share 50 of their
profits with the team that work there so
it's a whole new model where if you
visit one of our bars in tokyo in
berlin in cleveland in
australia you know that okay half of the
profit that this mark makes is shared
with amazing people that put this
experience together so we want to kind
of elevate the standard of hospitality
elevate the standards of careers within
hospitality we've always been a real
living wage employer which means very
important for us but
sharing 50 percent of profits with our
team i think helps us attract and retain
fantastic people i think it's something
that's going to resonate with our
customers and i think it's something
that's going to help us elevate the
hospitality experience for consumers and
consumers are ultimately the thing which
drives our business that's the thing you
know we the first point was like
inspiring people to come with you as
opposed to dragging them which again
many ceos many leaders fall into the
trap of doing that because we are so
blinded by our own mission that we
forget to communicate
it and bring other people but the second
thing you touched on there is um if you
know we sometimes ceos sit here and i've
probably been guilty of this you said
you've been guilty of this it's like
looking at you know the team that you've
built and and maybe questioning at times
why they're not moving with the same
energy that you are but they're not
incentivized to they're not going to be
a hundred millionaire gazillionaire if
this all works out they are getting
their their remuneration regardless of
outcome
so the second piece that i've garnered
from that of leadership is also to align
incentives and if you want someone to
act like an owner you have to make them
an owner
which it seems like common sense but
it's not so common
it's not so common it took us a while to
get there but that is exactly like we've
got reasonably high expectations of of
our team we like to push hardware in our
industry dominated by companies much
bigger than ours so we need to be on our
a-game we need to push things as a
business but
we need to recognize the hard work that
hundreds and thousands of people put
into our business every single day
they're the people that make the beer
that deliver the beer that make the
magic happen for the customer and i want
their incentives to be as aligned as my
own and i want them to feel as much
ownership as i do and i want them to
share intrinsically in the success of
the business but hopefully by doing this
we can create a new business model that
in a few years time i can then sit down
with other ceos and okay like we've
invested in our people this way but
we've become a better business because
because of it and then do other
businesses then decide to do the same
thing
is it maybe normal in five years time
for every hospitality business to share
fifty percent of profits with the people
working their site and if that happens
then we haven't only made the lives
better for the people at work in our
business but we've managed to
fundamentally change our industry which
would be really cool a lot of successful
businesses in the country i'm thinking
of the ben francis and thinking of the
huels hashtag ad just in case the asa
come for me
um
uh a lot of business owners that have
gone through extremely high growth and
i've sat here with those ceos of those
companies they get out of the way yep
they realize especially in your case
because this was your first shot at this
this is my first shot yeah so you're
gonna [ __ ] up like
many many many times
as well hugely
over and over again and still today um
but they get out of the way so ben
france has stepped down at a ceo when
there was 30 people the founder of
julian stepped out of the ceo role and
put someone in
did that ever cross your mind and why
didn't you do that sooner if you if you
knew that you didn't you had because
learning on the job when you got 2 000
people is a high risk
it's a high risk thing so i'm very
passionate about being ceo and it's
something i want to continue doing for
the foreseeable future and why
because i think we are only just
starting so a question that i get asked
a lot when i speak to the media is like
how do you feel about what you've done
what you've built what you've achieved
so far
and i wouldn't say the feeling is quite
as numb as indifference but it's
it's close to that
really yeah and for me what is exciting
is where can we take this from here so
we want to build one of the world's best
beer companies we want to build one of
the world's best companies overall i
look at
companies like
whole foods or tesla or google or
amazon or starbucks i mean that is the
scale of the ambition we want to do what
they've done in their industry for a
beer so what i'm insanely excited about
is okay we've given ourselves a platform
we've now got
over three thousand staff we now make
beer in four contents we've now got over
a hundred locations we've got
significant sales momentum where can we
take this from here and i think what
we've done so far
gives us an opportunity to do something
meaningful to do something impactful to
do something that enriches the lives of
our customers to do something that helps
us save the planet and fly the flag for
sustainability something that helps us
look after our team members even better
but helps us have a huge impact and what
i'm very excited about is okay what can
we do as a team as a company as a
collective as a community over the next
five to ten years that's what i'm
focused on that's why i get out of bed
in the morning and that's what i'm
really excited to
continue doing with the fantastic
management team and team that we've got
in the business i was startled when you
said it indifference
you you genuinely the way that you feel
about what you've achieved so far is
quite close to indifference kind of just
numb or like just meh
honestly
it's close and different so we've done
some fantastic things but
overall we're still
relatively small in the overall scheme
of things
i'm like in terms of like if i spend
like maybe five percent of my time
thinking okay this is good 95 of us okay
in the next 12 months we can open our
fantastic site in vegas we can plant
millions of trees in the lost forest in
scotland we can reduce our carbon
emissions we can launch some fantastic
new beers our customers are going to
love we can open 50 new locations in
india we can continue investing in our
people we can make the profit share
thing amazing we can try and make sure
that the equity that people have in our
team is as valuable as possible we can
continue expanding our german business
beer brewery
yeah so in 2007 if i'd gone when you
were doing you know you're taking that
20k loan from the bank
and i'd gone and seen you and dicky and
i said listen couple of years time
you're going to be the 16th largest
brewery in the world and you're going to
have thousands of stuff all around the
world in 111 locations whatever it is
you're going to be opening a thing in
vegas you would have and i said how do
you think you're going to feel on that
day what you said to me
well i think there's there's two answers
to that question
so one answer is the answer that i would
usually give to media which is like
if you go back to 2007 and now you've
built this
could you have envisaged it could you
have imagined it
in the answer that you've kind of got to
give to the media because anything else
sounds too self-assured no i could never
have imagined it it's been amazing
but the answer that i don't usually
share is of course i imagined it because
if me and martin didn't imagine it how
can we build it how can we make it a
real thing if it wasn't something we're
kind of planning to do or planning to
planning to build
so i think she went back and asked me
that question there i would have been
very excited about the journey and the
joy of building something but you if i
said how would you feel today so to that
i'm 2007 uh james and dickie okay and
i'm saying by the way look at this this
is what where you get to in 2022 yeah
you would you would i'm guessing you
would assume that on that day in 2022
you would be really content yes but
you're clearly not
you're not content are you because
you're saying that yeah you're saying
you're indifferent yeah no if you'd
asked me that then i would yeah i'm
gonna like spend half of my time in the
office half of my time traveling and
then
and then just chill where that's what
i'm doing at the moment is exact
opposite of that and what i'm focused on
is okay where do we take this thing from
here can we make a can maker dual
difference can we create the world's
first top 10 beer business for over a
century
and that's an exciting challenge
i've come to learn from doing this
podcast that um
we almost need to make goals that can
never be completed for that very reason
and so
the words like better
like will make brewdog better is a much
more useful word than will become number
one
because when you become number one
there's nowhere to go from there and
it's an anticlimactic
yeah exactly
so there's an ant there's a real
anticlimax about reaching these peaks so
it's almost like trying to climb a
mountain where there is no peak and that
is that's ultimately life and then you
die somewhere along the journey
but that kind of goes against the trend
of like goal setting and what's your
goal and what's your five-year plan and
this kind of underlying assumption that
finish lines will make us euphoric
have you experienced that that's kind of
why i was asking the question about 2007
yeah well i mean i guess the closest
thing we've had to finish line is in
2017
we took
a big investment in our company the
company was valued at just over a
billion so one of my things was always
like
let's see if you can build a unicorn so
unicorns are startup companies which get
to be valued over a billion called
unicorns because they're so there
there's so few of them happen
in the uk and especially in scotland and
i always thought okay if there was ever
something
that
would make me
feel okay i've accomplished that thing
i've done that thing i'm complete happy
content it would be okay build a unicorn
like that for me that was my win an
oscar school up scored a winning goal in
a world cup final but like for me that
was build a unicorn
and then the next day i was just like
okay let's let's go where do we go from
here that was your first big sort of
cash windfall personally because the
money some money went into the company
somebody went to the founders yes
yes so that was your first big um
dealings with being a cash millionaire
yes and uh i find a fun story from that
so um the money came in to myself in
martin
and uh
i had bethany so it was like well into
the tens of millions i had bethany my
amazing assistant and transferred it
from the lawyers account into my bank
account
for some reason we there was a typo in
the in the account numbers
and it went to somewhere in russia the
money was lost for four days at a point
in time
we thought
there was the money wasn't going to come
back so i went from the euphoria of okay
i've built a unicorn i've got a huge
check in my bank account where the [ __ ]
is the money what am i getting
tonight so in the fifth day
um the boss of the boss of the boss of
the person managed to find a way to get
the get the money back and we got the
money back but for the five days after
the deal the money was uh missing
presumed lost which is never coming back
russia what a place to send it
[Music]
yeah the start code sent it to bankinson
petersburg and they're like well the
bank might even want to send it back
because okay oh my god
so now now double triple check
every start code that i uh that send
cash to what was that date what was that
that like emotionally that's that was
what you were aiming for in many
respects in terms of financial freedom
what was it like
and and maybe it's a theme of
people you have on here but
often when you get to where you think is
good the thing that's going to make you
happy
a couple of days
and then
your reality is is is almost the same
the demons are there the challenges are
there the opportunities there
but with people i've spoke to as well
it's never just this euphoric moment
where you sail in the sunset and live
happily ever after it's a bit of a
bit of a celebration a bit of a kind of
quieting of the voices of the head for a
few days and then go again when you say
the demons what do you mean
that inadequacy complex like you're not
good enough you're never get managed to
build a business
this business is going to go nowhere
you're going to be a failure you're
going to be back in a fishing boat you
should have listened to everyone who
told you not to set up the business they
were right they told you it was a bad
idea who put that voice in your head
i think a combination of early childhood
potentially partly parents despite being
well intentioned
um there was a story from my childhood
where
i've been obsessed with sharks my entire
life so my favorite hobby is to go
diving with sharks it's like i'm
happiest when i'm under the water with
sharks i recently went to guadalupe
island off the coast of mexico dive with
some great white sharks so like being
under the water with sharks is is my
happy place and when i was a kid i would
always tell people when they asked me
what i want to be i want to be a marine
biologist i want to study sharks and
when i was eight or nine years old my
parents told me to go and get my shark
book i was like wow okay they're finally
interested in something that i love so
pajamas on just before bedtime went to
my bedroom come through with a chart
book
mother opened up the shark book and uh
went through the four authors in the
shark book and was like james like this
person phd this person phd this person
phd they've all got phds it's just not
something you're going to be able to do
so you need to stop telling people you
want to be a marine biologist you need
to stop telling people you'll get study
sharks because you just won't manage to
get a phd so you need to think of
something else and i just remember not
saying anything
taking my sharp book and just like
walking back to my bedroom and in tears
no okay no more no more shark extremes
have you ever forgiven your mother for
the way that she was
i don't think so you don't
but i think there's a lot of incidents
like that that's where that voice comes
from and
i mean the voice of the voice is very
much part of me um
and i think it's helped me
push maybe push too hard at times it's
helped me do some fantastic things and
but i mean it's it's always there and
after that big deal it was like okay
you've done that but now unless you can
do this then that voice starts up again
yeah i just i worry about that a little
bit
because um
yeah
why don't you think you've forgiven her
uh there was a lot of other things that
happened subsequently
and ended up in a
messy
court case with my father and i just
didn't want anything to do with it i was
like
this is your thing sometimes people
don't get on
fine just started out it's it's it's not
my thing and she
called me as a witness in the court case
which meant i had to sit there for five
days in the court of session in
edinburgh this was when i was studying
law in the court of session
with some of the students i was studying
with watching the case and i was like
sitting there waiting to be called and i
don't think she'd ever any intention of
calling me and somehow she just wanted
to subject me to the pandemic that was
playing out that i didn't want any part
of and i was forced to sit there and
watch it which was which was tough when
people talk about forgiveness they they
always say that it's a process of like
letting a prisoner go and realizing you
were the prisoner the whole time
um
another another question i mean
well i was going to ask are you
do you think you've healed from it
but you've just said that you still have
that voice today yeah but on some level
maybe i want that voice
interesting so maybe it's like well if
you lose that voice are you going to be
able to do these things is the voice
the thing that makes you
able to
build a business with your best friend
from scratch to what we've built but
isn't that what the base would say
because of that that is what the voice
would say the voice values validation
it's it's desperately seeking validation
so of course the voice would say what if
you lose me then you'll lose then you
won't be validated anymore and
validation is so important to us this is
a really interesting topic that i
that this was the last chapter in my
book and i actually didn't know i knew
what i wanted to try and get to but i
didn't know what the answer was until i
started writing and it's this whole idea
of feeling if you're you're enough yeah
do you feel like you're enough yet and i
thought that the reason why i was
ambitious was because i didn't feel like
i was enough so it was this driving
force but in fact i came to learn
that because i didn't feel like i was
enough
i had fake ambitions i wanted a
lamborghini and to impress people these
were never my ambitions and the closer i
got to feeling like i was enough my
ambitions changed i still had ambitions
i didn't lose ambition but they became
intrinsically driven ambitions like i
want to have a wife
and i want to do things like a podcast
where it doesn't pay a [ __ ] ton of money
it's not the best financial use of my
time but it's an intrinsically driven
thing
um
and so maybe your ambitions will change
but you'll be happy with the change
i think that's a great point i love your
book by the way and i've actually
highlighted a few yeah i have a few
points in that in that section and
i think at the moment ambition are
things that can be measured objectively
because that objective measurement helps
with helps that voice but at the same
time you're writing the voices like well
if you lose me you're going to lose your
edge i'm puts makes you able to do all
these things and has that voice changed
over the years with your success at all
no
not at all
it just moves the goal every time really
moves the goal post achieve it go post
movies no change at all in that voice
[ __ ] you now no
that explains explains a lot to be fair
because you've
been held forever with your business
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so
one of the things you announced which
you talked about earlier is this this
new manifesto for your business called
the
the brew dog blueprint creating the
business of tomorrow and this is kind of
the late stage vision for a much more
sustainable company when i say
sustainable i'm talking not about carbon
emissions i'm talking about a company
where your team and your your mission
can be achieved in a sustainable
holistically sustainable way you've had
a lot of controversy over the last two
years i don't just think over the last
two years i think controversy has
followed us
almost every year since 2008. and much
of that you've actually welcomed you've
you've tried to get controversial yeah
it's been central to your marketing
strategy yeah and it's actually
from my estimation especially in those
early has served you tremendously well
because it's made the marketing dollar
work a lot harder
um the controversy in more recent years
starts with this punks with purpose
letter that was written 300 of your
ex-employees and some of your current
employees at the time and think in 2020
or 2021 uh 281 came out with these
allegations of bullying uh lying fear
toxic workplace culture unfair
dismissals all of this stuff
when people hear about the
the blue dog blueprint they might think
it's a knee-jerk response to that
um
and that without that moment where you
know those employees had written that
letter about their experience at brewdog
you wouldn't have gone on the journey
and published that new vision for
brewdog what do you say to that um i
would say that's completely not the case
firstly let me speak about
how we've been this employer so i think
it's completely fair to say there's been
points on
the higher growth journey of this
company where we could have done more to
look after the the people as a
first-time ceo leading the company it
was expanding
super rapidly in the us and germany in
the uk at times we didn't invest enough
in hr we had unrealistic expectations of
our team and i think a fair amount of
feedback in that letter was was valid so
we've always wanted to be the best
employer we can be the aspiration has
always been to be a fantastic place to
work and we've always believed that our
long-term destiny is determined by how
well we look after the fantastic people
in our business and i think that has
been
core to our dna since day one have we
always lived up to that in the higher
dose periods no we haven't and i think
we fully accept that and off the back of
that feedback we did a full independent
review of culture we spoke to over a
thousand people inside and outside the
company and we made a whole host of
changes we invested in hr we put a page
in place across the board we added
resource where we felt we were under
resource as a company we put in place an
independently managed ethics hotline and
loads of other things
i think we had a few years where we
missed the mark from a people
perspective
high growth inexperience in my behalf
unrealistic expectations difficulties in
covert i think we've reset things now i
think we've put some fantastic things in
place
and then on top of that we've launched a
blueprint which i think helps create a
whole new model for business going
forward which is something we're very
excited to do when that letter came out
from punks with purpose
that day
talk me through what it's like to be a
ceo when 300 you know people sign a
letter accusing you of all these
making these allegations about toxic
company work culture what's it like for
you that day
tell it's
it's i mean this is my this is my life's
work and
some of that feedback was fair and valid
i think some of the feedback was was
disingenuous but we took that approach
of whether we agree with it or not we're
going to use this as an opportunity to
get better now maybe in two three four
years time we can look back and say as
difficult as this was we've become a
better company because of it how can we
engage with this and how can we use it
to get better because ultimately our
people are the most important thing in
our business and we want to be the best
business we can long term and we've just
got to
use it as a catalyst for
for getting better long term as a
business what did you think was fair
i think it's completely fair to say that
i at times in the journey have been
too intense that i have been too
demanding that i have
set standards for the team which i would
set for myself but then for a lot of the
team members that is unattainable and
i fell in the trap of picking bits and
pieces from some of my favorite business
leaders philosophy so jeff bezos has got
a philosophy that standards need to be
unreasonably high and unless people
think they're unreasonably high they're
not high enough and i would just pick
bits and pieces without kind of taking
maybe the whole philosophy and i just
pushed for such
high standards unrealistic deadlines and
it was because i was so focused on let's
build a thing let's create more jobs
like create more regression
opportunities for our team let's deliver
more value for our customers actually
amazing moments of customer magic let's
continue let's continue building
so the intention was 100 good and
because i was so bought in and so
focused on that i did i did push people
too far what was the most hurtful thing
that you read so you that that letter
came out the bbc did a documentary that
bbc did this podcast which is kind of
just the same as the documentary what
was the most hurtful thing that you read
written about yourself
well i think for for me there's the
difference between
okay this is
genuine
feedback because people had a valid
concern
and because people want to help
make us a better business which
fully accept want to listen to that
feedback all day long with us
there's been unfortunately two things
mixed together so
there's been the valid feedback
which we'll listen to which we accept
which would become a bit better business
there's also been people who have been
on a mission to inflict as much damage
as they can on me
and on the under the business with
mistruths with misrepresentations with
dishonest statements and dishonest
claims and i know a lot of these
individuals and
unfortunately i can't say too much at
the moment because there's two ongoing
court cases but there's been
a large amount of criminality involved
in this as well and hopefully one day
i'm able to speak about it but some of
the things that's happened in the
background are completely shocking it's
almost like a movie plot so you've got
the kind of two things mixed up in our
case you've got valid feedback from
ex-employees about okay you could have
done better here you didn't invest
enough in hr these things were difficult
that we fully hear and the other side
you've got people
taking advantage of that moment just to
try and inflict damage in me and the
company for
for whatever reasons we've always had
haters as a business as well perhaps
more than any other business and i
always felt to have people hate you you
need to be successful doing something
that you love and i think there's a big
difference here and you spend some time
in the u.s between
how u.s people relate to successful
business people and how uk people relate
to successful business people and i
think in the us it's
they cheer you on from the sidelines
they support you because they
their mindset is they think that can be
them someday whereas in the uk i think
it's
maybe a bit more jealous of success and
they don't think it's going to be them
so therefore they're they're jealous and
success which i think is a bit to play
there
as well so yeah some of the elements of
feedback that i felt wasn't coming from
a genuine place where somebody kind of
hired us to hear for as the other bits
of feedback that was fair and genuine i
was there for all day long but the
disingenuous bits of feedback were were
tough because they just all get reported
the same way in the media fair and fair
and genuine feedback then so you one of
the things that you actually do at your
company and you were doing during this
growth period doing the the old net
promoter school thing one of the things
that bbc reported on yeah in your head
office the the score for when people ask
we're asking a question how likely are
you to recommend brewdog is a good place
to work was minus 54 and then
company-wide the score was minus 18 yes
how does one when you because that's
just a number yes how does one go about
getting to getting the context of that
number and then improving it the number
because if i got that number i i
wouldn't know where to bloody start yeah
well i mean i would start with surveys
but it's a difficult thing to change
right because that's a it's an awful
number you know yeah and i don't think
you can change it based on a number and
i think the mistake that we maybe made
in the past
was when we knew we had an issue with
our culture we tried to fix those issues
in a vacuum so it would be me and a
couple of our senior leaders and okay we
know we've got this issue here we want
to make it better for our people let's
do this this and this but we create that
in a vacuum and we didn't speak to the
people so we did so many
well-intentioned things that we thought
was really going to help us as an
employer that just didn't help so one of
the biggest learnings
on that part of the journey for me and
it's really kind of came to fruition
with a blueprint is if we're trying to
do something that's good for our people
let's build it with our people let's not
build it in isolation let's not make it
a vacuum so the blueprint for instance
before we launched it i did focus groups
extensively with cross sections of the
company in america junior people senior
people middle managers i did the same
for a retail business for a production
business i did face-to-face workshops on
it it's like here's what we're thinking
about doing
in terms of making things better for you
guys what do you think this is going to
impact you in a day-to-day basis how do
you think this is going to go down the
team but ultimately how can we make this
better
and in the past the blueprint i would
have just launched it in a vacuum with
good intention we made so many changes
to how it works based on the feedback
from our team so we ultimately ended up
launching something that was far more
impactful that was far better for our
team because we built it in a
fundamentally different way than we
would have built it before which is just
in isolation and i think that's a first
example of us doing that and me doing
that as a leader which i think is a
really
important evolution of my leadership
style within the business the the other
thing you've done which i i implore all
companies to do is par as part of your
brew dog blueprint when i went on the
website i saw that you've got that
transparency dashboard yes
this is very important in the modern
world because this puts the the power of
truth into your hands in terms of
reality so what you've done is you've
published on your website things like
your employee sort of satisfaction
school
um things relating to your carbon
emissions and all these things so that
the world can now see what your own team
think of being a brewdog employee
because what that also does for the team
is it builds trust
it it does and i think it's such an
important part of our philosophy and it
just got to a point where there were so
many misrepresentations
that was like okay let's just give them
the facts in their purest most undiluted
form
and then people can make up their own
mind so if you look at the transparency
dashboard at the moment the latest score
that we've got from people within our
business is 3.49 out of 5 as an employer
now do we want to be 3.495 as employer
no is that significantly better than
most people outside the company would
have you think yes but what we've
committed to doing is every 12 months
we're going to do the same survey in the
same way and we're going to update
people so we're going to do that at the
end of this year and we're going to
share those results so people can see
okay you've done some things are you now
better or worse than a 3.49 in an
anonymous survey from your people and
that's a level of transparency we've
committed to here and
i think that commitment to transparency
isn't something new in our business in
2014 we launched something called diy
dog so with diy dog and we gave away the
beer recipe in full for every single
beer we'd ever made so at the time it
was 250 recipes so it was the key
starter kingdom it was everything that
most companies usually kind of keep
awake in a
in some secret vault somewhere and like
loath to share with anyone but that
transparency has been kind of hardwired
in our dna for a long time in the
transparency dashboard specifically
focusing on culture people headcount
employer score is a key evolution of
that and obviously if if you're asking
if you're doing surveys of your team
yeah uh people are always going to fear
reprisal which is if i write something
bad on this am i going to get fired or
something is it anonymous it's 100
anonymous and it's managed by an
independent third party oh good which
lets us get the purest most undiluted
fair objective feedback we can one of so
one of the i'm reading through the
bbc reports and i'm looking through i'm
listening to the podcast i like to do my
research so i watched the documentary
yeah i listened to all six
six and a half parts of the podcast
the bit that where i might my skin
really was just i felt really
uncomfortable was when a certain member
of the team i think in an american
bar talked about the interview process
for promotion and someone i think her
manager had said to her some had asked
her continually does she have kids
is she going to get married when you
heard that that a member of the brewdog
team was being repeatedly questioned on
whether they had kids in when they were
interviewing for promotion did you were
you as horrified as i was
i was i was massively massively
horrified here
i was massively horrified for two
reasons a that it happened and b because
i know it's my fault so
that
every single thing that happens in this
business
is a direct consequence of something i
have done so if something goes wrong
anywhere in the business in a business
with 3 000 people things are going to go
wrong all the time
in every different country like all the
time but i can never ever blame anyone
but myself because i've either hired
that person set the tone for the culture
instructed that person communicated with
that person communicated with their
manager so it's all a direct consequence
so when we've got an issue i can't look
at anyone but myself and i've got to
take full responsibility for that issue
and putting things in place to fix that
issue so it was hard to hear because
it's something that should absolutely
never happen but also hard to hear
because no because if i'd done my job
better then it just wouldn't have
happened in the in the first place is
that an evolution that perspective
that evolution is a perspective as well
before if something went wrong in the
car and i mean this is a steep steep
learning curve before if something went
wrong in the company
blame someone else yeah and by blaming
someone else
you just don't address what the issue is
and then you scapegoat someone else
which is bad from a culture perspective
when now it's back to the question okay
what could i have done to ensure that
didn't happen what can i do
to avoid that going forward what can i
do to make the team the culture the
people as strong as i can going forward
so we can be the best representation of
this company and build it to how we want
it to be is that
one of the trends that was very obvious
in this documentary was because i assume
brewer the brewery industry is is male
dominated yes
women that
get jobs in the industry are at
risk of getting swept up in a male
culture and um being
the victims of a male culture in many
respects there was the the story in the
podcast about someone in a in a brewery
or something doing a masturbation
gesture a female employee
this goes back to a masculine culture
issue kind of
the kind of culture you would expect in
a football locker room but wouldn't ever
is this the the systemic sort of
uprooting that you've had to to think
about because 3 000 people around the
world
you you
have to protect all of them i do you
have to protect all of them from each
other yeah
that's not
yeah
how does one go about that is that a
culture philosophy thing how do you stop
and how do you when someone goes to
report something like that that horrific
incident what
so again we've put in place loads of
things so now we've got an independent
ethics hotline which is independently
managed so there's so many ways now for
people people who report something
they're concerned with they can speak to
their line manager they can speak to the
hr department or if they want to do it
completely anonymously we've got this
independently managed hotline they can
call that hotline that hotline that then
gives the feedback to our directors to
our hr department but it's completely
anonymized they don't know who that
feedback is coming from and
for us
like we want to build the most diverse
most inclusive business that we can i
think it's fundamentally important that
we are as diverse and inclusive as our
customer bases as well we've now got a
diversity inclusion forum within the
business with
people from all over the business where
they discuss things okay we can get
better at this we can get better that so
it's putting more things in place where
we listen to a huge cross-section of our
team and whereas before we've been okay
we're building a thing
and the team are helping us build a
thing it's okay let's build a thing
together with our team because the
person who's on the front lines in our
bar in columbus ohio or a bar in central
london or a bar in edinburgh the person
who's working in the warehouse in
glasgow or in the jury in australia
their perspective on things is so
important and
i think a trap that i fell into was okay
this is our culture because this is what
i say it is you can't say what a culture
it is the culture is
how the people in your team feel and
then how they act and you only build
that together so for me it's been
another kiki learning let's build the
culture together with our team and
that's going to give us the strongest
culture that we can has the culture
always been amazed in the past no hands
up it hasn't can we make a fantastic
culture together in the future with our
team i fully believe we can and we're
very much focused on that you've got two
young daughters i do so when you hear
about you know when you hear these
incidents that have come from women
saying that they've experienced someone
being misogynistic to them that must hit
closer to home than most it absolutely
absolutely does so i'm super lucky to
have two amazing daughters they're
eight eight and five oh wow yeah um
the eldest one is uh sometimes makes
beer with me at home in the kitchen and
i mean saturday afternoon which is
at five does she drink it no she doesn't
drink it she smells it and she picks out
the hops and she picks out the mall and
then she designs a label and she gives
it to
might be another documentary so
sometimes you're allowed to
allow to drink it and stuff but yeah i
mean it's
it's tough i mean the outside of the
business i mean my daughter's the most
important thing in my life full stop and
the main focus of my life outside the
the business and
i think being a father has
changed my view in a lot of things i
mean it's not just since myself and
martin became fathers that there
suddenly became baby changing facilities
in all of our venues and that kind of
thing but and i can a deeper level a lot
of what we're doing from a
sustainability perspective is because
i want to be able to look my kids and
and i know that we did our bit to save
our home planet that this didn't happen
in our watch that we put things in the
line here and then in terms of the
culture we're building as a company as
well i want to be able to
when they're drawn to speak to our
daughters about okay we try to make it
amazing for everyone by doing these
things this is the values that we held
true to us did we always get it right no
was that intentional was there to do
that absolutely and this is where we got
to in that journey one of the things you
you said you know i [ __ ] up on this
particular point was investing in
heineken
and you've explained many times you know
the thesis behind why you did that yeah
i know that was i know people were
talking and you responded with some
things yesterday about that but i just
wanted to kind of confront that so
you've obviously been the antithesis of
those big yes we have beer companies and
then the bbc reported that you'd
actually invested i did they said 100
500 grand you say 120k yeah context and
so i they said i held 500 k's worth of
shares i invested 500k i quickly sold it
down okay so at the time they said it
was 500k why are you investing in the
people you hate
keep your friends closer closer
so
at that time
and it's it's the most stupid thing that
i've ever done if i could like go back
and change a single thing that would be
very high on the list just because of
how
at odds it sits with our values and how
we do things like companies so the
intention was to try and do a
distribution deal heineken felt that we
hated them and
i then without thinking about it too
much decided okay well i'm going to buy
this and like hey guys i can't hate you
too much because i've got shares in it
so
that was the kind of designing concept
behind it and whilst we don't want to be
owned by big beer business we do
distribution deals with them we've done
a distribution deal with asahi in japan
and we work with other big beer
companies in a distribution basis but
not an ownership basis
i naively felt it would help us get a
distribution deal done
uh we didn't get the distribution deal
done and yeah definitely one of the most
stupid things i've ever done i would
love to go back and take it back but i
did it i own chairs and
and heineken which is kind of like i
don't know luke skywalker owning shares
and darth vader's latest startup
were you the last question i have on
that topic then that's this these topics
more just generally is the other thing
that the bbc alleged was that you were
going to sell your company to heineken
yeah
and no truth in that whatsoever so we
had discussions about distribution about
potential partnerships but there was
never any intention to sell the company
and if we wanted to sell this company we
would have sold it a long time ago so we
have had so many offers why not
why not sell it that'd be a big payday
yeah but then the next the week after
what do you do
how am i going to spend my time what am
i passionate about let's start another
beer business and then build it let's
start another company and build it so
like if we had wanted to sell we could
have sold this thing a huge valuation a
hundred times over
i could be sitting in a yacht somewhere
sipping margaritas and never have to
worry about anything ever again so if we
wanted to solve we would have sold it it
was never the intention to sell it was
to see is there an option opportunity to
work together strategically and
distribution that helps us through the
business but
we're fully committed to
we're 15 years in we're fully committed
to the next 15 years and seeing where we
can take this thing and that's the fun
and that's the challenge and that's what
we're
focused on when you have you don't do
many interviews i don't i think you've
probably been a little bit too busy with
kovid and everything else going on so
you've not really done any interviews
but you did one in the sunday times with
josh glanci yeah and his sort of
conclusive point in that interview was
um
that he he thought you were obsessive
someone who clearly struggles to express
empathy or read social click um cues
um he's he's cold-eyed unsettling
company and is
as a determined person as i recall
meeting and then he goes on to say but
he doesn't think you are the person that
you've been portrayed to be in a
negative context yeah or words to that
effect um
but the bit that i found particu
interesting of all of that was
the part about social cues which you've
mentioned earlier in this conversation
yeah
so actually um off the back
of
the
time that i spent with with josh and
looking at that feedback i started
exploring as to whether i am a little
bit autistic and it's still something
i'm exploring at the moment but
working with some specialists i think i
might have some kind of light level
autism
in the mix that would explain some of
the social cue thing
some of the mindset thing and some of
the awkwardness as well interesting
39 years old that's a bit
you know
yes
because of that exact quote really
because of that exact quote and i was
like chatting with my doctor and i was
like do you think this meeting she's
like i thought that for a while james
quite possibly so yeah i'm working with
a specialist at the moment to see if
there's a
diagnosis there or not but it's
something where something we're looking
at but based on that exact quote which
is very spooky that you're editing well
it's because you you said about social
cues start the conversation and then i
had seen him say that and i'm putting
two and two together
and generally you know when i'm
generally when i was reading about all
the bbc stuff and all the the um a lot
of the sort of accusations and
allegations
much of it felt like sometimes you would
stare at people and you'd be a bit
socially awkward yeah yeah so and and
and that can be
for a lot of people you know i mean i'm
saying this is part of it that can be
quite intimidating yeah
and so look when i was reading through
the feedback about people being fearful
and stuff i'm not saying it was because
but i and putting all these pieces
together just going well
empathy social cues
you know i definitely need to do better
than empathy a hundred percent and
it's kind of one of the learnings as
well that i've been so focused
that i was like well
don't need any empathy because it just
takes up mental capital that needs to be
determined resilient driving forward
hitting this objective going for the
next goal and i think some of the issues
we've had in the past has been because
of that and this whole thing is a
learning this whole thing is a journey i
think i've reflected and learned more
than i have in my entire life over the
last 12 months which i think we had to
do inside the feedback and one of the
things i'm definitely working on at the
moment is how can i be more empathetic
empathetic as a leader and i think
that'll make me a better leader did you
never get that feedback before before
that article came out that article came
out last year right i think i got it but
i just chose i did what i did with a lot
of feedback which was chose to ignore it
and just keep going so it's only when
you stop and pause and reflect a little
bit that you look at feedback in a
slightly different way
all of this is painful yeah this whole
process is painful this the the the
letter that came out from punks with
purpose the bbc stuff all of it's
painful
but um
there is a silver lining
i'm sure because there's always a silver
lining
what is the silver lining the silver
lining is the can the last 12 months is
a phenomenal opportunity for us as a
business us as an employer me as a
person me as a leader to get better
and
i think we'll look back in a few years
time and as tough as it's been we'll be
grateful that we received that feedback
and we took that time to pause
reflect and learn and make changes we've
made more changes in the last 12 months
we've perhaps done in the history of the
company i've made more changes my own
leadership style than i have in
in the kind of history of the company
the last 12 months as well so i think
the silver lining is as tough as this is
this is an opportunity for us to
double down on what we value as a
company for us to work closer with the
fantastic team members we've got all
over the planet and for us to build
something together with them where
they're incentivized engaged rewarded
motivated played a key part in the
decisions and how we're building things
as well
and as tough as it's been and as hard as
it's been and it has been it's been hard
i think we are better long term because
of that and that's what we're focused on
doing
anxiety
interesting topic i talk about a lot
here i've experienced it myself
my anxiety was it has been worse
and hardest to control yeah or diffuse
with media related things yes
so
yeah
so tell me about your experience with
anxiety
and and when it's been hardest and give
me some give me an honest view of what
when i use the word hard
what what what that looks like
practically for you
well kind of going through the last few
years i've had hyper vigilance i've had
anxiety just when you're constantly on
alert yeah yeah so you're connected
jammed it jammed in can a fight fight or
fly and it's just been like from a
business perspective it's been really
tough from a personal perspective it's
been tough as well so that's been uh
that's been a challenge and
it just when you when you feel like
you're under attack
and like we felt like we've been under
siege
for large parts the last couple of years
um and some of that has been with things
which are understood as well which just
kind of makes those kind of blows kind
of land land tougher so you just kind of
feel your body kind of
convulsing with the cortisol and you
just feel yourself getting an edge and
when you're in that state you've got
i've got to get myself back and even
kill because i don't make my best
decisions i'm not the best leader at
that time so how can i calm myself down
i'll work on a few breathing exercises
death work is is really good so i
usually do a daily breath work practice
which i think is really key as well and
i think
overall as a society we're trending
towards being more anxious and i think
our relationship with social media our
relationship with technology which is
why monitoring how many minutes i spend
on my phone each day is very very
important but i think
the amount of anxiety we're seeing as a
site in a society today is so much
higher than it would have been 10 20
20 years ago and
as a company
going through these challenging times as
well we've put in mental health first
aiders who go on a mental health first
aid course we've got a huge amount of
trust in business as well so 90s 90
yeah 90 90 across the business is
starting to speak about it far more as a
business and they just think with
lockdown with covered with everything
like the impact on people's mental
health and i'm glad people are talking
about it more
is a challenge i think the more people
talk about it there's less of a stigma
and there's kind of more openness about
okay these things help with with the
mental health side of things did you
used to think like i did that ceos
weren't meant to talk about it
yeah but i mean that quote that i shared
with you it's like the first rule of ceo
psychological meltdown is not to speak
about ceo psychological meltdown don't
let people know it's tough don't let
people know it's difficult
suck it up buttercup and just get on
with it which works for a certain amount
of time
it's definitely got a shelf life on it
as well as a philosophy kovid was one of
those moments where that really flipped
where in fact the way that you brought
people along with you was by letting i i
saw this really big shift in and letting
them know that you were feeling it too
and in fact one of the most trust
building things for teams was to turn to
your team and go listen this is really
tough and i'm scared and it's difficult
for me and i'm feeling it too and i
think that that's a big that was a
critical moment where i learned the
importance of transparency with my team
not just
business transparency but personal
transparency
and and how useful that was in letting
them know that we're in this together i
guess as well so it's nice to
hear you say that because to talk about
your own struggles with that yeah have
you have you ever been to therapy or had
any sort of medical support yeah i got a
therapy yeah
i do when did you start
um i actually started when i separated
from my ex-wife right um to kind of help
us through that transition and help us
be the best co-parents we could
to our two amazing
little daughters through that and
i've continued going because i just
think it's it's really useful and just
kind of back to being a ceo is lonely
and the tendency is okay let's just
bottle all this stuff and let's keep
going with it
i think i can be a better leader if i've
got someone to talk to you about those
things
a way to work through the difficult
challenge and emotions means that i can
take the best version of myself to work
every single day be the best leader i
can and i owe it to my team to be to be
the best leader i can be what has
therapy done for you in terms of um so
that's the sounding board component but
is there like practical sort of
mechanisms or advice that you've
garnered from therapy or just an
understanding of yourself i guess more
than anything because i think it's just
an understanding of myself so
um i actually did
last year five days of intensive therapy
in the in the woods outside of nashville
yes i was living i was living in a
little hut for for five days and kind of
doing an
intensive course and i think it's just
it's so useful and urge everyone to do
that but the more you can understand
how you're put together as a human and
so much of that is like the things that
happen in your early life how that
informs the filters you use to see the
world
means you can understand your behavior
and means you can avoid default patterns
which are which are not helping you so i
would have
default patterns which i would just fall
into subconsciously which didn't help me
so now i understand okay i think this
way because these things happen this is
how i view the world usually this is how
i can put a better perspective on it
this is how i can then react better in
certain situations as a force as opposed
to following default patterns which
maybe didn't help me a busy person like
you yeah why would you what inspired you
to go and take five days out of your
very focused very relentless lifestyle
and go and sit in a forest with a
therapist two very simple reasons i want
to be
the best
dad that i can to my two amazing little
daughters and i want to be the best
leader i can to the amazing people that
work in the business and i felt okay
the more i can
understand myself the better i can do in
those two things so i did it as much for
my daughters my team as i did it for
myself that's why i did it when we look
ahead at your future with brew dog and
yourself
um lots of grand plans the business is
growing exceptionally quick in the us
there's some
pretty startling stats about the
meteoric rise of breeding across the
united states you're opening this
massive you shut down las vegas strip
the other day yeah
craning something in yes it was the sign
for the top of the building okay that's
really ridiculous
but
the growth in u.s has been crazy crazy
crazy
um what is i mean you've told me about
where you want to get to in terms of the
industry but like on a practical level
what is next for brewdog what should i
expect of someone looking in from the
outside
you should expect us to focus
even more in the three most important
things in our business and that is
sustainability that is people and that
is beer so tell me about that
sustainability point because you are the
first
carbon negative
beer business in the world yes so we
thought we were doing our bit for the
planet we thought we were doing a bit
for sustainability
and i was fortunate enough to have
dinner with sir david
and it was just before lockdown it was
in february of 2020 and i was just hit
with a blindingly stark realization we
are not doing nearly enough and we are a
part of the problem and the problem is
way more severe than the night than i
thought the problem was so after we'd
stabilized our business in the middle of
a pandemic we completely pivoted and we
thought okay we're going to put
everything on the line for what we
believe in here so we found an amazing
expert we worked hand-in-hand with
professor mike berners-lee one of the
world's best sustainability experts and
he's been our lead scientific advisor
ever since and i think it's so important
to do that mood i made so many mistakes
in our sustainability journey if we
hadn't had his help but we decided even
though it's the middle of a pandemic
from a sustainability perspective huge
change is needed today not in 2040 not
in 2050 not in 2030 huge changes needed
today and we want to hopefully set a new
standard when it comes to sustainability
so we became the world's first carbon
negative beer business that means we
take twice as much carbon out of the air
every single year that we emit that
includes all the carbon in our supply
chain we publish a report every six
months it's fully transparent this is
the carbon footprint of our business
this is how it's broken down and this is
how we've then helped take that carbon
out of the air we've made huge
investments across our business and
becoming more sustainable we recently
invested 12 million in a bio energy
facility that came online last week in
ellen and this is amazing so it takes
our waste water and it turns our waste
water into water we can use again and
biomethane green gas that we can use to
power our system so our system is now
fully powered by green gas that comes
from our waste also reduces our water
usage and then we're also able to use
that green gas to use in vehicles which
transport our beer as well which we're
moving into so huge investments to
reduce our footprint but we also wanted
to take ownership of the problem
ourselves so our carbon is our problem
let's do something ourselves so we
bought nine and a half thousand acres in
the scottish highlands a huge chunk of
land where we're creating the lost
forest so we're planting millions of
trees to create this beautiful native
broad leaf woodland and habitat rewild a
huge part of scotland restore peatlands
that's going to help take carbon out of
the air and we're causing this carbon to
go into the air ourselves so we wanted
to be responsible for taking it out
and it's been a crazy journey over the
last couple of years we've changed
everything about our business we've put
our money
where their heart is in this one it's a
huge gamble but we fully believe that
the only way we're going to get
out of the climate crisis we're in at
the moment is
businesses so we think governments and
politicians are incapable of making the
change that needs to be made because the
time skills they work on is just too
long for the pain that we need to take
short term so to get us out of the
climate crisis i think it's the best
businesses working hand in hand with
scientists to put things in place and i
think when it comes to members of the
public as well they can almost have more
of an impact when it comes to
sustainability with how they spend their
money than how they vote so it's making
sure that our community are engaged and
excited and coming the sustainability
journey with us but the three pillars of
our business for today and going forward
sustainability looking after people the
best we can and making the best beers
that we can
one of the the allegations obviously was
about the lost forest in the bbc report
took some time
it was yeah they said that it would it
was taking too long essentially to
it was it was publicized but then a
couple years later hadn't been built yet
so just to give you a chance to respond
to that yeah and i think that's typical
of how disingenuous some of the bbc's
claims were the only the singles reason
we hadn't started planting trees is we
hadn't received the consent that we
needed to start planting trees so we had
to do environmental studies we had to
apply for permission to the scottish
foreign commission we were given that
plan in consent last week we're starting
planting in august exciting you've built
a tremendous um
tremendous business in terms of scale
and product and your customers love what
you're doing you've built that cult yeah
in your customer base one of the pieces
of advice you gave i believe it was in
your book which i thought was really
underrated
was about
finance
and i i sit there in the den and i
reflect on how i [ __ ] up many times in
my own business and i think i just wish
someone had said that to me when i was
20 years old your point about finance to
quote you directly because i wrote it
down you said um here goes this is the
single most important piece of advice in
this book
understand an understanding of finance
essentially
why is that the sing
through all your experience why did you
choose that as the single most important
piece of advice and tell me your journey
with finance
it's the least fun it's the least
interesting it's perhaps the least sexy
bit of your business when you've got a
startup so therefore it's the most
likely to be ignored but for me
finance is
the language of business
it's the score keeping system of
business so if you can't keep score how
do you know how your business is is
doing and it's something that so many
small business owners entrepreneurs just
ignore and that is the seed of their
downfall
and like everything else when we set up
the business i mean we like to think
we're punk and that we've got the same
diy
approach so we had to learn the skills
we needed to exist outside the system to
be able to beat the system learn the
skills you need to
succeed yourself so you can you can be
self-supporting and you don't have to
depend on anyone for anything which is
really important for your startup so it
was just
self-taught but we had to self-teach
ourselves how to generate barcodes how
to do the paperwork for international
customs for shipping beer to
america
how to set up an online accounting
platform for that for the business
we had we had no money like outsourcing
any of these things simply wasn't an
option when you've got
200 pounds in the bank account so for
the first eight or nine years the
business
we were teaching on the edge of
financial oblivion
almost every single day and my view was
if we're not then we're not pushing the
resources we have hard enough because
we've got to be pushing we've got to be
stretching
but it also means you've got to be
very considered with how you use your
money with what you're investing can we
find a way to do this cheaper faster
better can we do this ourselves if so
let's do it ourselves and not spend that
money there's a really important lesson
in that which i also learned um which
was when you're broke
you're forced
especially the social chain was born out
of me being broke at my first startup
and realizing that i could no longer pay
for conventional ads in a newspaper and
i was gonna have to think of something
else because i was forced to in your
situation
you were forced to learn finance and the
fundamentals of business and you were
forced to make your marketing dollar go
further with more radical unconventional
ideas and it's funny that that's
actually been a tremendous blessing
there's a lesson in that for teams in
business
about how to break through disrupt and
also how to just develop yourself as an
entrepreneur
absolutely and that comes back to a key
fundamental part of our approach which
is love a constraint so most people look
at a constraint and see it as a limiting
factor
if you do that you've lost the game
before you even start you've got to look
at a constraint as a
potentially beautiful catalytic force
that allows you to find a better way to
do something so our business has all
been about constraints but our
philosophy with a constraint is okay
well we can't do this a normal way how
can we find a better way a new way to do
that and that's where equity punks came
from that's where given a where beer
recipes came from that's where learning
the skills that we needed to succeed
ourselves and doing so many things
in-house came from it's by looking at a
constraint and using that okay
this constraint is here let's make it
beautiful
by using it as a tool to force us to
think differently come at this from a
different angle and to hopefully find a
better way to do something and you've
said in your book in multiple times that
you don't advise young startups to
outsource things to agencies even if
they have the cash yeah
because of that very reason yeah we talk
about this a lot in the den so it's
really front of mind for me at the
moment because all these businesses are
walking into the den and saying um
i've got i want your 50k steve because
i'm gonna
give it to a marketing agency and i sit
in my chat and go [ __ ]
i'm gonna keep the money in my pocket
thank you yeah
that's for me that i'm out if you say
that um i always give them the advice
and tell them why i go because when
you're super early in the business and
i'm sure this is similar to your
rationale super early in the business
you want to be as close to the data as
possible in the insights and the know
how the knowledge and what's going to
happen when it when they spend the 50k
and it didn't work they'll blame the
product and you
they will never take credit for the
digit show and of course they're
incentivized to over
sell
all of these but to get your take on
that why do you not outsource things
when you're in that even if you had the
cash
why shouldn't i outsource things so our
view was even if we outsource things
from early the partner is never going to
care as much as you care they're not
going to know your business your
customer as much as you do they're not
going to be fully aligned in terms of
incentives with what you're trying to do
so
also
back to that philosophy of would or
could another company do this
if you outsource things you're going to
get solutions you're going to get
answers that other companies would do so
the more of that you can do internally
still use partners for execution for
reach for bits and pieces but with us
the more that we can do generate
internally is get br2 and a voice it's
going to be our mission it's going to be
our passion and we think that makes it
more authentic and we think that means
it's going to resonate better with
customers which a lot of our marketing
has done in the past you probably know
we have a closing tradition on this
podcast where the last guest asks a
question for the next guests yeah this
guest this person has written you a
question which i have not read yet and
they don't have great handwriting so
okay um
i think that says do
do you think your younger self would be
proud
look up to you now question mark
oh good question we're going deep i
thought we're like finished with a deep
question
have you listened before
i think your younger self would be proud
look up to you now
i think so yes i do
i do and
like maybe even more demons when i was
younger so to
to kind of see that i've been able to
to build something and and achieve
something and
see that i've got like lucky enough to
have two fantastic amazing little
darters and stuff so i think my younger
self would be would be happy which if
i've done
thank you
um
not easy not easy coming here
[Laughter]
it is what it is and thank you for all
of that and i hope you've enjoyed it
quick one as you might know crafted one
of the sponsors of this podcast and they
make really meaningful pieces of
jewellery this lion piece they've made i
wear all the time along with the little
timepiece the sand timer that i wear
often and the lion piece you might have
seen conor mcgregor has a similar piece
which was custom made for him for me it
represents courage and if you walk
through my house the house that i'm in
right now if you walk six feet in that
direction you'll see a huge lion
portrait if you go upstairs you'll see a
lion portrait if you look behind me on
the shelf near the top there you'll see
a line as well the reason my house and
my life is surrounded by lions is
because they represent courage
calmness and that tenacity that i've
applied to my business success to my
professional life into everything in
between for me the lion has always been
an animal that can be almost a bit of a
contradiction they are so loving and so
caring of their own and can be powerful
and courageous when necessary in order
to achieve what they want to achieve so
if you like me are a big fan of courage
bravery ambition while also being
calm and composed check out this line
piece and let me know if you get it my
girlfriend came upstairs yesterday when
i was having a shower and she said to me
that she tried the heel protein shake
which lives on my fridge over there and
she said it's amazing low calories you
get your 20 odd grams of protein you get
your 26 vitamins and minerals and it's
nutritionally complete in the protein
space there's lots of things but it's
hard to find something that is nice
especially when consumed just with water
and that is nutritionally complete and
that has about 100 calories in total
while also giving you your 20 grams of
protein
if you haven't tried the cured protein
product do give it a try the salted
caramel one if you put some ice cubes in
it and you put it in a blender and you
try it is as good as pretty much any
milkshake on the market just mixed with
water it's been a game changer for me
because i'm trying to drop my calorie
intake and i'm trying to be a little bit
more healthy with my diet so this is
where heel fits in my life thank you for
making a product that i actually like
the salted caramel is my favorite i've
got the banana one here which is the one
my girlfriend likes but for me salted
caramel is
the one
[Music]
oh
[Music]
[Music]
you
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This video features an in-depth interview with James Watt, the co-founder of BrewDog. He discusses his journey from a fishing village in Scotland to building a global beer company, touching upon his upbringing, early business struggles, and the unconventional, provocative marketing strategies that helped BrewDog stand out. Watt also addresses recent controversies, including allegations regarding the company's workplace culture, and details his own evolution as a leader, emphasizing a move toward radical transparency, employee ownership through profit sharing, and his commitment to sustainability.
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