The move will see brands including Lonewolf Gin, Abstrakt Vodka, Duo Rum, Casa Rayos Tequila and Ron Bodega discontinued, with the distilling team overseeing a managed run-off of remaining stock and ensuring all existing supply commitments are fulfilled.
The decision does not affect BrewDog’s Wonderland ready to drink cocktail range.
‘Difficult decision’
A spokesperson for BrewDog said: “After careful consideration, we’ve made the difficult decision to cease production of our distilling brands, with the exception of Wonderland cocktails. This will allow us to sharpen our focus, and concentrate our efforts on our beer and the continued growth of Wonderland.”
BrewDog launched its distillery in 2015, with BrewDog Distilling Co established the following year. The company said the wind down will take place over the next few months.
Operational challenges
The announcement comes amid significant operational changes at the business.
Recent financial results showed a £37m pre tax loss and slowing sales growth, while BrewDog has undertaken targeted headcount reductions, UK bar closures and asset disposals to stabilise its cost base.
In October, new CEO James Taylor warned the UK brewing and pub sector had faced more than £1bn of additional costs in the past year, calling on the Government to take action on duty, business rates and cumulative regulatory pressures.
The group remains the largest independent brewer in the UK, shipping more than 1m hectolitres to over 50 markets last year and holding a 4% share of the UK grocery beer category.
BrewDog remains a major player in UK craft beer, with Punk IPA still among the country’s highest volume craft brands.
BrewDog has also continued to reshape its retail estate. Earlier this month the operator sold its Birdcage pub in east London to Urban Pubs & Bars following a “compelling unsolicited offer”.
