Best-selling business advice from a BrewDog

As the only beer writer on the planet with an MBA (probably), it falls to me to give a business school-style review on behalf of beer drinkers to Business for Punks, the just-published “how we succeeded and how you can too” guidebook from BrewDog co-founder James Watt.

Not that any review is likely to make much difference to the book’s popularity: it is already the number-one best seller in the “entrepreneurship” section of Amazon’s UK website, and in the top 350 best-selling books on the site overall, despite only being published last week. The book, it appears, is as popular as the beer.

Thanks, James we get the idea

Selling like hot … um … ale … James Watt and book

Business manuals from stars of the American craft brewing scene have been popping up like mushrooms in the past few years: Ken Grossman of Sierra Nevada, Steve Hindy of Brooklyn Brewery, Sam Calagione of Dogfish Head, Tony Magee of Lagunitas, Steve Wagner and Greg Koch of Stone Brewing and Jeremy Cowan of Schmaltz have all written books about how they started and grew their businesses, Calagione has a second book out in December, Off-Centered Leadership: The DogFish Head Guide to Motivation, Collaboration and Smart Growth, and Jim Koch, founder of Samuel Adams, has his “how I did it” book out in April 2016 .

Britain’s craft brewers have been slower to get their experiences on paper: maybe they’re too busy brewing. It’s not as if we lack an audience for how-to-be-a-successful-brewer books: large numbers of people apparently want to brew commercially. Some 200 new breweries have opened in the UK in the past 12 months, and the country now has more than twice as many breweries per head as the United States: 1 to 38,000, against 1 to 80,000. More likely, we lack the “superstar” brewers that the US has, people whose name on the cover will attract the buyers. I doubt that Watt wrote the book and sought a publisher: much more likely that someone at Penguin Random House approached Watt with the idea

Watt, of course, and his fellow founder of BrewDog, Martin Dickie, are among the very, very few candidates for “star brewer” in the UK. More than 6,000 people turned up to BrewDog’s annual general meeting in Aberdeen in June. Six thousand people. In Aberdeen. Admittedly this is not so much an AGM as a beer festival-cum-love in, with something on the order of 40,000 pints of beer consumed. But there isn’t another brewery in Britain that could hope to attract that level of support. And as Pete Brown once pointed out, when even his Stella-drinking mother in Barnsley has heard of BrewDog, you know you’re looking at a powerful brand.

So: what’s Watt’s book like?

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The discreet charm offensive of the BrewDoggies

Casks at the Fraserburgh breweryThere is, I suggest, a thick slice of what the Irish call begrudgery in the responses around the British beerosphere to the success of BrewDog. Here are these young guys, starting in their early 20s, who managed in a few years to build one of the best-known and fastest-growing breweries in Britain, worth on the order of £10m, in part through a series of stunts including reporting themselves to the drinks industry watchdog just for the publicity, selling beer at £500 a pop in bottles that had been stuffed into dead animals, and calling the Advertising Standards Authority “motherfuckers”.

Martin Dickie and James Watt now have their beers on bar and supermarket shelves not just in Britain but around the world, a growing and increasingly international chain of bars of their own, and even their own American TV show, FFS, now entering its second series. Uniquely among British brewers, Dickie and Watt have made a huge success of crowd-sourced funding, raising around £9m from some 14,000 customer-investors to fund their extremely impressive growth (that’s about £650 an investor, to save you working it out). Around 5,000 of those investors are expected to make the trip to Aberdeen this summer for the BrewDog AGM. You wouldn’t be the first to suggest that it’s Kool-Aid rather than Punk IPA they’ll be drinking.

While their fan base is clearly considerable, and happy to hand over lots of its cash, you certainly won’t search long to find vicious criticism of BrewDog on the web: “BrewDog are horrible marketing-type suit people who make terrible beer”; “a lot of juvenile rhetoric, devious marketing stunts and grotesquely cynical ‘punk’ references”; “There’s absolutely nothing ‘punk’ about Brewdog. We’re sick and tired of their shit marketing and faux-persecution complex … their beer is total shite.”; “shallow, arrogant hyperbolic fuckwits”; “Next to a genuinely class brewery like Beavertown or The Kernel, BrewDog are an embarrassment … Punk IPA – a truly dreadful beer … they’re a successful marketing company who happen to use beer labels as their medium, rather than a genuine craft brewery” – you’re getting the picture.

There is, of course, a simple answer to all that criticism: you say that, but you don’t have 14,000 investors and your own American TV show, and nor are your marketing tactics being used as case studies for other businesses.

I’ve had disagreements with BrewDog myself, but I’ve always thought that Dickie and Watt had no reason to care about what I thought, any more than they would be bothered by any of their other critics: if some people don’t like their beers and their marketing tactics, a more-than-sufficiency of others do. So I was surprised to be approached by the company and asked if I’d like to join nine other beer bloggers and writers from as far away as Finland, Norway and France to be flown to Aberdeen, taken round the 13-month-old Ellon brewery and beered and dined at BrewDog’s expense. Were BrewDog on a charm offensive? Apparently so: last week they flew up a load of journalists who had written about BrewDog in the past, for a similar jolly, which resulted in, eg, this review in the Morning Advertiser. But why woo me? According to Alexa, this blog ranks number 32,360 among UK websites: that’s really not very influential.

But, hey, I like looking around breweries at other people’s expense, even if it means having to get up at 4am to drive to Gatwick for a flight on the EasyJet red-eye. And yes, I was interested in meeting Dickie and Watt, probably the finest guerrilla marketers currently operating in Britain (and easily the best guerrilla marketers the British brewing industry has ever seen). I don’t know how much they actually spend on marketing, but I doubt it’s a huge amount, which makes their ability to generate column inches all over the world from apparently tangential events quite brilliant – come on, what other British brewer do you know who could get stories in newspapers from Sweden to Thailand publicising their new beer launch? Continue reading