TThe Diary of a CEO
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04 July 2022

Brewdog Founder: The Untold Story Of One Britain’s Fastest Growing Companies: James Watt

9Frameworks
12Insights

Frameworks in this episode

Insights & moments

The myth-busts, hot takes, explainers, and tools worth keeping.

Explainer· 1

Explainer1:35:30

What BrewDog says its carbon-negative strategy includes

Watt says BrewDog worked with sustainability adviser Mike Berners-Lee, measured its supply-chain footprint, and aimed to remove twice as much carbon as it emitted. He also describes investment in bioenergy, wastewater reuse, biomethane, woodland creation, and peatland restoration. These are company claims presented by its CEO in the interview, not independently verified environmental findings.

  • Watt says the company publishes a carbon report every six months
  • He claims its carbon-negative calculation includes the supply chain
  • A reported £12 million bioenergy facility was intended to turn wastewater into reusable water and biomethane
  • BrewDog bought 9,500 acres in Scotland for woodland and peatland work
  • Watt says tree planting awaited regulatory consent and was due to begin after approval

we became the world's first carbon negative beer business

James Watt · 1:37:00

we take twice as much carbon out of the air every single year that we emit

James Watt · 1:37:00
#sustainability#carbon#brewdog#climate

Story· 7

Story02:00

How feeling like an outsider shaped James Watt's self-image

Watt describes a childhood marked by a speech impediment, severe acne, social withdrawal, bullying, and a difficult relationship with his mother. He believes feeling outside conventional social patterns may have helped him approach business differently, but presents that connection as his interpretation rather than a general fact about entrepreneurs.

  • Watt says a speech impediment made him afraid to speak as a child
  • He recalls bullying connected to his speech and acne
  • He describes high parental standards as contributing to a lasting sense of inadequacy
  • He interprets outsider status as one possible source of unconventional thinking

because of that i just wouldn't speak to people because i was scared to let them see that i had a speech impediment

James Watt · 04:00

if you go and do the same as everyone else you're just going to get the same outcome as everyone else

James Watt · 04:30
#childhood#identity#entrepreneurship
Story07:30

The six years at sea between law school and BrewDog

After studying law and economics, Watt says he left a legal-office job after two weeks because he could not imagine spending his career there. He then worked with his fisherman father for six years, attended nautical college part time, and became a qualified captain; he credits the period with teaching him resilience, teamwork, and adversity.

  • Watt abandoned the career for which he had studied after experiencing the actual job
  • He returned to a family trade rather than moving directly into entrepreneurship
  • Part-time nautical study led to first-mate and captain qualifications
  • His leadership lessons from the sea later influenced how he thought about business teams

i saw myself like being maybe 40 50 years in the future kind of retired and sitting in that same office

James Watt · 08:00
#career-change#fishing#resilience
Story15:30

The sales rejection that nearly broke BrewDog's first year

Watt describes BrewDog's first operation as two founders doing everything, including hand-filling, capping, and labelling thousands of bottles over roughly twenty hours. After staying awake through production, he says every local sales prospect rejected him and the final prospect spat the beer out, leaving him worried about the loan and rent.

  • The founders initially handled production, packaging, accounts, and sales themselves
  • Watt says neither founder could afford to pay himself
  • The same Punk IPA that was rejected locally remained BrewDog's flagship beer
  • He attributes continued effort partly to passion and partly to a fear of validating his inner critic

the last person and didn't just say no he tasted it and he just spat it back into the pot

James Watt · 17:00

if i quit that voice wins couldn't let that voice win

James Watt · 17:30
#brewdog#startups#rejection#sales
Story18:00

The Tesco order BrewDog accepted before it could fulfil it

Watt says a Tesco competition placed BrewDog beers first through fourth and led to an offer for four products in 500 stores. He signed despite lacking the capacity, then obtained financing from HSBC by falsely claiming Bank of Scotland had offered a competing deal. The episode presents this as part of BrewDog's origin story; the deception should not be treated as responsible financing advice.

  • Watt says BrewDog was selling about ten cases a week before the Tesco opportunity
  • The proposed order required a bottling line and additional tanks
  • Bank of Scotland declined further lending during the 2008 financial crisis
  • Watt openly says he misrepresented a competing finance offer to HSBC
  • The equipment arrived shortly before the Tesco delivery deadline

we had four months to figure out a way to do this

James Watt · 19:00

our bank bank of scotland have just offered us an amazing finance deal

James Watt · 20:00
#brewdog#tesco#financing#ethics
Story1:22:30

The Heineken investment Watt calls one of his worst decisions

Watt says he bought Heineken shares in an attempt to signal goodwill and secure a distribution agreement, despite BrewDog defining itself in opposition to large beer companies. He says the distribution deal did not happen and calls the investment one of his most foolish decisions because it conflicted with BrewDog's stated values.

  • Watt disputes the reported size and says the holding was sold down quickly
  • His stated purpose was to support a prospective distribution relationship
  • He distinguishes working with large beer companies on distribution from allowing them ownership of BrewDog
  • He accepts that the investment's symbolism was incompatible with BrewDog's positioning
  • He denies that BrewDog intended to sell the company to Heineken

it's the most stupid thing that i've ever done

James Watt · 1:23:00

we had discussions about distribution about potential partnerships but there was never any intention to sell the company

James Watt · 1:24:00
#heineken#brand-values#distribution#brewdog
Story1:25:30

The interview feedback that led Watt to explore possible autism

Watt says a journalist's description of his difficulty reading social cues led him to explore whether he might be autistic. He reports discussing the possibility with his doctor and working with a specialist, but says the question was still being assessed and does not claim a diagnosis in the episode.

  • The trigger was feedback about social cues and empathy
  • Watt says his doctor regarded autism as possible
  • He was working with a specialist to determine whether a diagnosis applied
  • He separately accepts that he needs to improve empathy as a leader
  • The transcript does not establish that he is autistic

i think i might have some kind of light level autism in the mix

James Watt · 1:26:00

i'm working with a specialist at the moment to see if there's a diagnosis there or not

James Watt · 1:26:30
#autism#diagnosis#leadership#empathy
Story1:29:30

Watt's account of anxiety, breathwork, and therapy

Watt says sustained controversy and media pressure left him anxious, hypervigilant, and feeling under siege. He reports using breathing exercises and a daily breathwork practice to calm himself, and says therapy helped him understand personal patterns and show up better as a father and leader; these are personal experiences, not medical treatment claims established by the episode.

  • Watt describes being persistently on alert during the preceding years
  • He says he makes poorer decisions when highly activated
  • Breathing exercises are presented as a personal calming practice
  • He began therapy around separation from his former wife and continued afterward
  • He says a five-day intensive therapy experience helped him examine default patterns

i've had hyper vigilance i've had anxiety just when you're constantly on alert

James Watt · 1:30:00

the more you can understand how you're put together as a human

James Watt · 1:34:00
#anxiety#therapy#breathwork#mental-health

Q&A· 2

Q&A49:30

Why Watt chose to keep learning in the BrewDog CEO role

The host challenges Watt on the risk of learning to lead while BrewDog grew to thousands of employees, noting that other founders had stepped aside. Watt says he remained CEO because he was passionate about the role and believed the business was only beginning, while acknowledging repeated mistakes and an ongoing transition from small-crew captaincy to large-company leadership.

  • Watt calls BrewDog his first attempt at building and leading a company
  • He says the future challenge motivates him more than past scale or valuation
  • His ambition extends beyond beer sales to people and sustainability initiatives
  • He reports adding an experienced independent chair as a mentor
  • The interview presents his rationale but does not establish that remaining CEO was the best governance choice

i'm very passionate about being ceo and it's something i want to continue doing for the foreseeable future

James Watt · 50:00

we are only just starting

James Watt · 50:00
#ceo#founders#governance#brewdog
Q&A1:04:30

What James Watt conceded about BrewDog's culture criticism

Asked about a letter signed by former and current employees alleging bullying, fear, unfair dismissals, and a toxic culture, Watt says a fair amount of the feedback was valid. He accepts that BrewDog underinvested in HR, set unrealistic expectations, and that his own intensity pushed people too far, while disputing other allegations that he says were disingenuous.

  • The interview identifies the claims as allegations from employees rather than established findings
  • Watt accepts that rapid growth and his inexperience contributed to people failures
  • He says BrewDog commissioned an independent culture review involving more than a thousand people
  • He reports investments in HR, pay changes, added resources, and an independent ethics hotline
  • His claims about malicious actors and criminality are unverified assertions in the interview and tied to ongoing cases

i think a fair amount of feedback in that letter was was valid

James Watt · 1:06:00

i did i did push people too far

James Watt · 1:08:30
#brewdog#workplace-culture#accountability

Takeaway· 2

Takeaway50:00

Why a billion-pound valuation did not make Watt feel complete

Watt says business achievements briefly quiet his sense of inadequacy but do not remove it. He expected building a company valued above a billion to feel like a finish line, yet says his attention moved almost immediately to the next objective; this is his personal account, not a clinical explanation of motivation.

  • Watt describes achievement as temporary relief from an internal voice
  • He says past accomplishments receive little of his attention compared with future plans
  • A 2017 valuation above a billion did not produce the lasting contentment he expected
  • The host suggests that intrinsic ambitions can remain after a person feels more secure in themselves

it's a bit of a bit of a celebration a bit of a kind of quieting of the voices of the head for a few…

James Watt · 57:30

it just moves the goal every time

James Watt · 1:03:00
#ambition#achievement#self-worth
Takeaway1:40:30

Why Watt calls finance the language and scorekeeping of business

Watt argues that founders often neglect finance because it feels less exciting than product, sales, or marketing. He calls it the language and scorekeeping system of business: without understanding the numbers, an owner cannot reliably tell how the company is performing or make considered decisions about scarce cash.

  • Watt identifies finance as easy for startup founders to ignore
  • He links financial understanding to knowing whether the business is actually working
  • BrewDog's founders taught themselves accounting and other operational functions when outsourcing was unaffordable
  • He says the company spent years close to financial failure while trying to stretch its resources
  • The episode does not provide a complete accounting curriculum or financial-control system

finance is the language of business it's the score keeping system of business

James Watt · 1:41:00

if you can't keep score how do you know how your business is is doing

James Watt · 1:41:00
#finance#startups#cash-flow#founders