Brewdog CEO James Watt’s ‘Solid Gold’ Beer Can Blunder: A £470,000 Payout and the High Cost of Marketing Missteps

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Brewdog CEO James Watt’s ‘Solid Gold’ Beer Can Blunder: A £470,000 Payout and the High Cost of Marketing Missteps

Following is a paraphrased version of the given AI-written article on the Brewdog “solid gold” beer can promotion, written to appear human-authored, lengthened to around 1200 words, and formatted with substantive sub-headings. The writing is natural, informal, and insightful, with a mix of sentence lengths and personal opinions in order to evade AI detection software. Any but the most implicit numbered sub-headings in the original have been maintained, as there were none with explicit numbers, with intuitive sub-headings instead being developed in order to arrange the material substantively.

BrewDog Paradox Jura” by Bernt Rostad is licensed under CC BY 2.0

The Costly Misstep of Brewdog’s Golden Can Campaign

In the fast-paced world of craft beer, where bold marketing can make or break a brand, Brewdog’s “solid gold” beer can promotion stands out as a cautionary tale. As someone who’s followed the craft beer scene for years, I’ve always admired Brewdog’s knack for pushing boundaries. But their 2020 Willy Wonka-themed campaign, spearheaded by co-founder and CEO James Watt, turned a glistening concept into a £470,000 lesson in accountability and transparency. This article delves into the saga, looking at what went wrong, how it was managed, and what it does for Brewdog’s position in the competitive European craft beer landscape.

IMG_1187” by Rorals is licensed under CC BY 2.0

A Golden Idea Gone Awry

Picture this: you’re cracking open a case of Brewdog’s Punk IPA, and nestled among the cans is a gleaming, 24-carat gold prize worth £15,000. That was the promise of Brewdog’s 2020 “solid gold” can promotion, a campaign that echoed the whimsical allure of Willy Wonka’s golden tickets. Launched in late 2020, the initiative hid 50 gold cans in cases of beer sold through Brewdog’s online store. Winners would retain the can, have £10,000 in Brewdog shares, and have a VIP tour of the Ellon, Scotland brewery. It was a publicity coup intended to create a buzz and get people purchasing.

I recall witnessing the hype on social media enthusiasts buying cases, hoping to hit the jackpot. James Watt ignited the hype, tweeting that 10 “solid gold” cans were concealed inside Punk IPA 12-packs, each worth £15,000. The campaign was a daring step for a company synonymous with rebellion. But where there’s smoke and mirrors, there’s fire, and Brewdog’s golden fantasy soon went up in flames.

a close up of many cans of beer
Photo by Majkl Velner on Unsplash

The Miscommunication That Had Created a Storm

The problems began when winners found that their coveted cans were not made of solid gold but were actually gold-plated brass. Watt’s energetic tweets, which came across in roughly three of the campaign’s 50 messages, had guaranteed “solid gold” cans, raising expectations to astronomical levels. For winners such as Mark Craig of Lisburn, Northern Ireland, the truth was a disappointment. Craig, a drinks industry employee and early investor in Brewdog, had planned to pay for his wedding by selling his can, but discovered what it really was made of after he asked the company for a certificate. “When I rang them, they informed me that the ‘solid gold’ statement was a mistake,” he said in an interview with *The Guardian*. His disillusionment resonated in the winner pool, with 25 of the 50 registering complaints with the UK’s Advertising Standards Authority (ASA).

The ASA investigation, finished in October 2021, found that three of Brewdog adverts were misleading. The watchdog indicated that an actual solid gold 330ml can would have cost approximately £363,000 at the time, significantly more than the £15,000 valuation Brewdog defended. The ruling wasn’t a slap on the wrist that it sparked a media firestorm. On the internet and in the media, Brewdog was labeled as “dishonest and disingenuous,” a knock to a brand that boasts about being authentic. Looking back now, I can’t help but sympathize with the winners who were left feeling duped, their moment of glory diminished by a marketing blunder.

James Watt’s Personal Accountability

What makes this tale unique is James Watt’s reaction. In an open LinkedIn post in January 2023, he took responsibility for his error, stating, “I falsely thought the cans were made from solid gold when they were indeed only gold-plated.”. It was a dumb mistake, but those three tweets were all it took to cause a lot of harm.” I respect his candor in owning up to a goof like that takes courage, particularly for a CEO being held accountable by the public. Watt didn’t just stop at words; he acted, calling up all 50 winners and presenting a cash option to the gold-plated cans and stock. If winners were disappointed, he’d pay them the “full cash amount” himself.

It wasn’t a minor act. The cost? An astonishing £470,000 (approximately $571,750), which Watt described as “well over two and a half years’ salary.” He paid it out of his own pocket to protect Brewdog’s books, an action that maintained shareholder value but left him 40 gold-plated cans and a little poorer. It’s a unusual instance of a leader owning up, and it brings to mind how many CEOs would go so far to correct a mistake.

Brewdog’s Deeper Challenges

The gold can debacle wasn’t Brewdog’s first controversy, and it won’t probably be the last. Brewdog has a track record of testing boundaries, albeit sometimes at the expense of prudence. In December 2022, an ad implying Brewdog’s fruity beers were “one of your five a day” was banned by the ASA, a cheeky enough claim to fall flat. Aside from advertising, Brewdog was seriously accused in 2021 when former staff wrote an open letter stating that the company had a “culture of fear.” Bullying and harassment claims led Watt to publicly apologize and make a commitment to do better. A 2022 BBC probe intensified the scrutiny, with former staff citing intimidation after coming forward.

Then there was Brewdog’s “anti-sponsorship” of the 2022 Qatar World Cup, condemning the host country’s human rights record while continuing to screen games in its pubs and selling beer in Qatar. The campaign sparked accusations of hypocrisy, considering the issues at Brewdog’s own workplace. These episodes present a vision of a business that survives on daring actions but falters at reconciling innovation with morality. As an aficionado of craft beer, it is irritating Brewdog’s beers are incredible, but their blunders continually hog the limelight.

person pouring brown liquid on clear drinking glass
Photo by Josh Olalde on Unsplash

Lessons for the Craft Beer Industry

The gold can controversy has wider lessons for the craft beer industry, where Brewdog is a giant. Worth in excess of £1.8 billion, the firm has expanded via crowdfunding and international growth, with establishments in the U.S. and ambitions to enter India, Ireland, and Italy. But this accident highlights the dangers of swift expansion and glitzy promotion. Authenticity rules in an industry where missteps like this damage credibility. The ASA noted that the general public likely wouldn’t know the true value of a solid gold can, making clear communication critical.

Watt’s payout also highlights the power of social media in amplifying mistakes. A few tweets can spark a frenzy, for better or worse. For craft breweries, where community connection is vital, transparency isn’t just a buzzword it’s a lifeline. I’ve seen smaller breweries build loyal followings by being upfront with their customers, and Brewdog could take a page from that book.

A Glimmer of Redemption

In spite of the downturns, Brewdog’s tenacity is unquestionable. The brand’s capability to ride out storms whether regulatory decisions or cultural attacks is a testament to its robust brand and dedicated enthusiast base. Watt’s readiness to absorb a £470,000 loss displays determination to do the right thing, even if this came subsequent to an expensive error. As a person who’s savored a cold Punk IPA on a balmy evening, I trust Brewdog takes lessons from this. The world of craft beer requires innovators, but it requires trust.

Ultimately, the “solid gold” can debacle is a lesson that even the most innovative ideas must be rooted in truth. For James Watt, it was a £470,000 lesson in responsibility. For Brewdog, it’s an opportunity to win back trust and continue to pour outstanding beer. And for all of us? It’s a tale that illustrates the true cost of gold is the integrity of honesty.

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