Craft beer entrepreneur James Watt has claimed a pint of BrewDog’s flagship Punk IPA in one of the brewer’s own pubs would cost £27.50 if prices rose in line with soaring energy bills.
Punters would have to fork out £48.75 for a burger and fries, he added in a flurry of activity on his LinkedIn profile over the weekend.
He also took aim at proposals to restrict or even ban alcohol advertising and promotion in Scotland.
And he urged all sides to “cut a deal” over train strikes, which he said had cost BrewDog more than £1 million in lost revenue during December alone.
Mr Watt warned the UK is “sleep-walking towards utter disaster” for tens of thousands of breweries, bars and restaurants.
BrewDog boss fears ‘many great businesses’ won’t survive 2023
Calling for public cash to avert a “nightmare, he said: “Businesses all over the UK are facing the crippling combination of the worst cost inflation for decades and squeezed consumer spending power.
If this means spending a bit more money to support business through this nightmare now, it’s better than spending the money on unemployment benefits.
James Watt, co-founder, BrewDog.
“Jeremy Hunt (chancellor) will make the situation worse when he rows back support for business energy bills from April.
“We’re only in the foothills of a crisis which poses a far bigger threat to companies than C-19.
“The sad reality is there are many great businesses that simply will not survive 2023.”
The current trading climate is “incredibly challenging” for BrewDog, he said, adding: “Fortunately, we have the scale and backing to survive. Many smaller businesses aren’t so lucky.
“The (UK) government threw the kitchen sink at Covid but unless it acts quickly tens of thousands of businesses vital to employment and our economy will wither and die.”
We’re only in the foothills of a crisis which poses a far bigger threat to companies than C-19.”
He continued: “I’ve seen more breweries, bars and restaurants than I can name go out of business in the past few months and that trend is only going to accelerate.
“Industry experts estimate that up to 70% of the UK’s bars, pubs and restaurants could be forced to close.
“Every one that fails is an arrow in the heart of the sector.”
Alcohol marketing ban would be ‘terrible outcome’
On the proposed blanket ban on the marketing of alcohol in Scotland, Mr Watt said: “This could see alcohol being treated the same way as tobacco.
“That would be a terrible outcome. Drinking isn’t smoking. One cigarette is a cigarette too many.
“Alcohol can be consumed safely and, according to the Scottish Health Survey, problem drinking has been declining steadily for the last 20 years.
Industry experts estimate that up to 70% of the UK’s bars, pubs and restaurants could be forced to close.
Every one that fails is an arrow in the heart of the sector.”
Ellon-based BrewDog has “always been on the side of reform”, he said, adding: “Back in 2012 we were the first company to publicly back the Scottish Government’s proposals for a minimum unit pricing.
“The industry should engage in a dialogue about how vulnerable groups can be better protected.
“We should welcome targeted reform, but lumping alcohol in with tobacco is wrong.”
Mr Watt, who co-founded BrewDog with Martin Dickie in 2007, continued: “Drinking in moderation is one of life’s great pleasures.
“Scotland is home to some of the world’s finest spirits and the planet’s number one craft beer brand – a source of jobs, prosperity, and pride.
“A blanket ban would be a massive and totally unjustified kick in the teeth for our nation.”
What would BrewDog’s James Watt do if he were in government?
Mr Watt also offered his “starter for 10” on what he would do if he was in government:
- “Business rates – cut them in half for a year, or better still scrap them altogether? Business rates are antiquated, and we need a review anyway.
- “Tax policy in general has been a farce. The government put up National Insurance in April, then cut it again in November. It needs to be cut further still – the employer’s contribution, in particular, is literally a tax on hiring and growth.
- “A VAT holiday for hospitality for a year. Everybody will be cutting back on budgets but every little helps. Pubs and bars like ours are vital parts of a community and we need to protect them.
- “Get a grip on strikes. Cut a deal rather than trying to ban strikes. The knock-on effect on hospitality from the rail walkouts came at exactly the wrong time. The strikes in December alone cost our business over £1m.
- “State-backed loans to protect the really small guys who could disappear completely? with repayments starting in 12 months’ time.”
He added: “If this means spending a bit more money to support business through this nightmare now, it’s better than spending the money on unemployment benefits if thousands of businesses go under.
“Without more help, we’re sleep-walking towards utter disaster for the tens of thousands of businesses in the UK.”
Conversation