BrewDog Shuts Distillery And Axes Spirits Amid Losses

BrewDog, the maverick Scottish craft beer giant known for its bold marketing and global bar empire, has announced it will shutter its spirits division and halt production at its Aberdeenshire distillery in the coming months. The move, confirmed on January 27, 2026, marks a dramatic pivot for the company, which burst onto the spirits scene a decade ago with ambitious plans and a flurry of new brands. Now, facing mounting financial pressures and shifting market dynamics, BrewDog says it will focus its energy on its core beer business and its fast-growing line of Wonderland ready-to-drink cocktails.

The distillery, located at BrewDog’s headquarters in Ellon and built in 2015, has been the birthplace of a diverse range of spirits, including Lonewolf Gin, Abstrakt Vodka, Casa Rayos Tequila, Duo Rum, and Ron Bodega rum. But after what the company describes as “careful consideration,” these brands will soon disappear from shelves. Only Wonderland cocktails—an expanding range that includes espresso martinis, margaritas, mojitos, cantarito palomas, and whisky sours—will survive, with production continuing via third-party partners.

“After careful consideration, we’ve made the difficult decision to cease production of our distilling brands, with the exception of Wonderland cocktails,” BrewDog said in a memo to staff, as reported by the drinks business. “This will allow us to sharpen our focus, and concentrate our efforts on our beer and the continued growth of Wonderland.” The company added, “We’re incredibly proud of what the distillery team has built and want to thank everyone who has worked on, contributed to, and supported the distilling business over the years.”

The closure comes at a time of significant upheaval within BrewDog. In 2025, the company closed ten bars across the UK—including its flagship venue in Aberdeen, the site of its very first bar—and announced job cuts following a £37 million loss in 2024. According to BBC, this loss was part of a string of five consecutive years of pre-tax losses, now totaling a staggering £148 million. The company has not disclosed how many jobs will be affected by the distillery’s closure, declining to comment on the specifics despite concerns raised by staff and the local community.

Harriet Cross, the Member of Parliament for Gordon and Buchan, voiced her worries about the impact on local workers and the broader Aberdeenshire economy. “The announcement of the closure of BrewDog’s distilling business is deeply concerning. The staff at BrewDog whose jobs are now at risk will understandably be very worried by this,” she told The Scotsman. “This decision highlights the growing issues facing the drinks industry and hospitality sector, with challenging market conditions causing financial difficulties. Residents in and around Ellon rely on employment from BrewDog, and an important local business making cutbacks like this is very unsettling for the area.” Cross said she would be seeking clarity from BrewDog about the implications for jobs and whether other parts of the business might be affected.

The decision to exit the spirits market follows a series of high-profile departures from BrewDog’s leadership. Martin Dickie, co-founder and head of BrewDog Distilling, left the company in August 2025, citing personal reasons. Just a month later, managing director of distilling Steven Kersley, described by The Grocer as the “driving force” behind BrewDog’s spirits ambitions, also departed after what was termed “mutual discussions.” CEO James Watt, another co-founder whose tenure was marked by controversy and a BBC investigation into inappropriate behavior, had already stepped down in 2024, moving to a newly created role as “captain and co-founder.” Rumors have swirled that Watt may be plotting a bid to regain control of the business, though nothing has been confirmed.

BrewDog’s spirits arm had been a bold experiment. Launched in 2016, the distilling business aimed to disrupt the spirits world much as BrewDog had shaken up the beer industry. Over the years, the company rolled out a parade of new products, from Five Hundred Cuts rum to shochu and even a hard seltzer range. There were ambitious plans to lay down thousands of whisky casks and even dreams of building a craft distillery in the United States. Some initiatives, like the whisky cask program, attracted both attention and skepticism, with branding ideas occasionally drawing online mockery. Despite the innovation, the spirits market proved tough to crack, with BrewDog admitting in its staff memo, “The spirits market remains highly competitive and we need to simplify the business and focus our energy where we can truly win.”

The company’s Wonderland cocktails, which will remain on the market, have been a rare bright spot. BrewDog sees significant growth potential in the ready-to-drink (RTD) cocktail segment, a market that has boomed in recent years as consumers seek convenient, bar-quality drinks at home. “That means doubling down on our beer range and Wonderland cocktails, where we see significant growth potential,” BrewDog’s internal communication stated. The Wonderland line, now boasting over a dozen varieties, will continue to be produced by third-party partners, ensuring its presence on shelves and in bars even as the distillery itself winds down.

For investors and fans, BrewDog has promised a “responsible wind-down” of the distilling operation. The company pledged to manage existing stock and supplier commitments carefully, and to fulfill all obligations to its Equity for Punks shareholders and whisky cask investors. “For any Equity for Punks who hold whisky-related perks, or any Whisky Cask investors: we will be contacting you directly with details on next steps. Importantly, we want to reassure you that we will fulfil all existing obligations in full,” the memo read.

The closure of the distillery is just the latest chapter in BrewDog’s roller-coaster story. Founded in 2007 by James Watt and Martin Dickie, the company grew from a tiny operation in Fraserburgh to a global player with around 60 bars in the UK and many more worldwide. BrewDog’s brash marketing and “punk” attitude won legions of fans, but also drew criticism—especially over its workplace culture and, more recently, its decision in 2024 to stop hiring new staff on the real living wage, opting instead for the lower legal minimum wage. That move sparked widespread backlash, adding to the company’s mounting challenges.

As BrewDog prepares to wind down its spirits business, it faces an uncertain future. The beer market remains fiercely competitive, and the company’s financial woes are far from over. Yet, if there’s one thing BrewDog has shown over the years, it’s a knack for reinvention. Whether this latest shake-up will be enough to restore its fortunes remains to be seen, but one thing is certain: fans and critics alike will be watching closely as the next phase of BrewDog’s journey unfolds.

For now, the stills in Ellon will soon fall silent, marking the end of an ambitious experiment—and the start of a renewed focus on what made BrewDog famous in the first place: beer, boldness, and a bit of punk spirit.