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Tuesday 29 August 2017

Brewdog announce radical profit giveaway?


Brewdog, who just sold 23% of their company to American corporates, have now announced what they claim is a radical profit giveaway. 



Brewdog has announced (their wording) - 

Today, we’re excited to announce that BrewDog is committing to giving away 20% of our profits. Forever.

Firstly many companies do similar things but they just dont dress them up as unique. CSR has been around for over 20 years. It is a form of company promotion. And who ever heard of giving something away and then asking for it back?? That's called a loan. 

Secondly, when they say profits, what do they actually mean? Anyone who has run a company knows that your net profit can be as small as you wish to make it. That apart, the scheme as outlined looks very ordinary and has no doubt some Corporate Tax kickback.

Finally the employee profit share scheme they have announced alongside this, is just that. Its not new. Its called building in employee loyalty and feel good. Its part of running a successful growing business. Some of the this money will apparently be going to shareholders or Equity Punks as they insist on calling them. That my friends is called issuing a dividend. 

Now if had you got real balls and a real concern for the welfare of your community, a share of revenues ie turnover along the same lines would have been a punk move. This PR is for pussies.

So Brewdog, you are a great company and you have redefined the possibilities of growing something small into something big. Why do you need to continue with the charade? You sold out to corporates - everyone does it. So get used to it.


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