A picture of two packs of BrewDog beer cans stacked on top of each other. Four different types, from left to right, Elvis Juice, Punk IPA, Hazy Jane and Wingman

A Downwards (Brew)Dog

Just after the pandemic, I was a regular attendee of weekend yoga classes at the gym, with the primary goal of becoming more flexible. If you’re ever in need of a thorough stretching, I would highly recommend it! 

Stretching your business, and expanding, is unfortunately not something that can be achieved in a Saturday morning yoga class. But it is a natural and healthy part of business growth and development. Because when your business is thriving, expansion means more opportunities and more excitement. 

It can also mean more problems.

In the last few months, Brewdog has been in the news for exactly this reason. Since its founding in 2007, the company has excelled for its innovative beers and marketing techniques, plus a reputation for doing things differently. The brand was built on being bold, independent and proudly anti-corporate, something that resonated with customers early on.

But over time the business kept stretching. 

More bars, more locations, more ideas.

Some of that growth made sense. A successful brewery opening a few bars to showcase its beers is a logical step. The problem arose when the stretching didn’t stop there. The company moved into hotels, spirits, distilleries, even international bar expansions. 

And when you stretch in too many directions at once, things start to tighten up in places you didn’t expect. 

Earlier this year, the company entered administration. 38 of its bars closed almost immediately and over 400 staff were made redundant.

That kind of outcome rarely comes from a single bad decision. Usually, it’s the result of lots of small stretches that slowly pull a business away from what made it work in the first place.

In Brewdog’s case, the original appeal was simple enough: good beer. A brand that felt different from the big brewers. Customers knew exactly what they were buying.

But the more directions the business went, the harder it became to keep that original focus clear. Each new adventure requires time, management attention, cash and more. And eventually, the stretch becomes a strain and the parts of the business the customers really care about start to suffer.

Stretching is part of growth. It’s often necessary, nevermind exciting. But the stretch needs to be deliberate and stay connected to what the customers value.

In yoga, the instructor is always reminding you to stretch to the point where it’s working the muscle, but not so far that something snaps. You’ll find the same; a bit of stretch builds strength. Too much, and in the wrong direction, and problems that are hard to rewind are created. 

That’s really the aim of what we do at EmpowerPath. Stepping back, looking carefully at what customers value, and using that as a starting point for understanding where your business should grow, and where it probably shouldn’t.