James Watt, the controversial co-founder of BrewDog, is plotting a return to the beer industry with a new venture called Second Best. Watt plans to offer shares to the retail investors, known as equity punks, who lost their investments when BrewDog was sold earlier this year. The new company will focus on canned beer rather than replicating BrewDog's extensive pub empire.

The move comes two months after Tilray Brands acquired BrewDog's assets for £33mn in a prepack administration deal. That transaction left approximately 38 pubs closed and nearly 500 employees jobless. BrewDog, once valued at £1bn, had struggled with mounting losses and a toxic workplace culture exposed in 2021. The company reported a fifth consecutive annual loss of £36.7mn in 2024.

Watt previously received a £50mn payout from BrewDog's 2017 share sale to TSG Consumer Partners, which heavily diluted retail investors' stakes. These equity punks had invested over £75mn through BrewDog's crowdfunding scheme between 2009 and 2021, only to be wiped out by the Tilray acquisition. Watt says he feels an obligation to these investors and wants to build a better beer business with community involvement.

The Second Best venture remains in early stages, with Watt self-funding the project and still securing necessary licenses. He may open a couple of specialized beer-focused pubs, but the emphasis will be on a leaner canned beer operation rather than BrewDog's sprawling hospitality model.