BrewDog has cancelled plans for its annual AGM (Annual General Mayhem) bash in Aberdeen due to organising costs.
The annual event, that has over the years attracted attention for the Aberdeenshire-based company, is the highlight of the year for many investors, and missing out on a party in the city has disappointed many.
However, others have praised the company for being prudent with finances.
A message to investors, known as Equity Punks, by e-mail explained that this year the AGM would be a global event – but held in local BrewDog bars.
AGM now too expensive to run?
The message read: “In 2023, our AGM will be held on April 22, in all of our bars.
“We want to use our amazing network of bars as global hubs to being our community together on what is always out most important day of the year.
It continued: “The Aberdeen AGMs are always very expensive to host, events are not our core business and more often than not we have to pull in agency staff.
“This then means we often end up delivering suboptimal experiences to our community.
“Our 2023 experiment will hopefully ensure amazing experiences, delivered by our own team in our own world-class venues as we bring our community together all around the globe.
“From Berlin to Aberdeen and from London to Columbus.”
BrewDog cutting costs
In August, the BrewDog bar in Peterhead and the Hop and Anchor in Aberdeen, which is run by the firm, were closed due to rising fuel costs.
Defending his position, co-founder James Watt argued the new plans would help support their bars.
He said: “I think it is important, that as shareholders, you take note of this point: In a year when all UK hospitality businesses are fighting hard to avoid closures and protect jobs due to an unprecedented inflationary environment to lose £1million on an event when we could do something which helped support our bars would have been imprudent.”
In praise of the decision, one man said it was good decision that will allow everyone to enjoy the event, another pointed out that the change would benefit the maximum number of people.
However, many called on social media, including investors in the company, wrote of their disappointment.
One shareholder wrote on Facebook, said: “Shocking. people were promised an AGM as part of being an exclusive shareholder.
“What we get is an invite to a local BrewDog bar which in most cases has general access.”
Another man said: “The only real benefit of owning BrewDog shares was the AGM. BrewDog gets more pathetic every day.”
A female fan from Edinburgh said: “And there you have it…it is all about cost and resource.
“Clearly not accounted for the event in their annual budget.
BrewDog expansion
“They don’t care, they want to drive us all into their bars, spend out money and knowing James, create a big marketing hype around the event – all for free.
“As he’s said. never spend your own money when you can use someone else’s.”
Another woman wrote: “There’s been nothing wrong with the AGMs until Covid hit.
“They are happy to take out money for shares and give us a tiny discount in bars.”
Another said: “Basically a teams call in a pub.”
“That’s the way to solve last year’s queue,” another man joked.
Yesterday, BrewDog announced its expansion into China – saying it was planning to open 10 bars in the next five years. Last year it opened a bar on the Las Vegas strip.
BrewDog has been contacted to comment.
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