Mighty marketing?
Advertising is key to ale's growth - but are brewers getting it right?
The dwindling marketing budgets
afforded by some of the national brewers to support their ale brands have dominated the headlines - and led to claims that their lack of interest has sounded the death knell for ale.
But many of the regional brewers have taken up the mantle, launching prolific campaigns and boldly marching into territory usually dominated by lager with expensive sporting sponsorships.
How their individual efforts have been perceived by licensees is hard to tell - although teams at the more dynamic marketing departments, such as sector leaders Greene King and Fuller's, will undoubtedly feel their approaches have paid off if their brands' performances are anything to go by.
But just over half - 53.5% - of licensees in our survey don't think that ale brewers are using the right marketing strategy, with the remaining 46.5% disagreeing. Pubs in the North West, Midlands and Wales are most supportive, while respondents in the North East, London and South East express more unease.
When asked how brewers could enhance their marketing, by far the most popular suggestion is greater spend on marketing and promoting brand awareness.
After that, the following ideas were voiced:
l targeting younger customers
l targeting more women customers
l offering higher-quality ales
l more promotional branded glasses
l moving things upmarket
l more seasonal variation, such as summer and winter ales
l cheaper prices
l more events, such as mini ale festivals.
Licensees' opinions are less polarised when it comes to innovation and new products, and it seems that they are mostly satisfied with what's on offer. Only a quarter say there is insufficient innovation, with this balance maintained in all six regions.
CGA Strategy director Ashley Cairns says: "There is quite a lot of innovation and a huge variety of products to chose from. Going back just 20 years, was Young's doing Double Chocolate Stout or Fuller's introducing products such as Discovery or Honey Dew? Back then, only one brewer was producing a honey beer. Now there is a huge range, as well as a growing variety of seasonal ales."
But, as with the issue of marketing, licensees are divided about how much outlet support they receive in the way of PoS material, with 55% saying it is insufficient - a view shared in all six regions, apart from Scotland.
Licensees seem to value PoS but it must be suitable for their pub. This is where brewers can learn from the success of spirits brands, in particular. The wisest only spend their budget after talking to pubs, asking them what would work and what they would put up rather than taking a scatter-gun approach.
The result is promotional material which is used and therefore effective.
"Sometimes there can be a one-size-fits-all approach," adds Cairns.
"Outlets are saying that they don't just want one type of PoS - one might want a stylish poster image to display, for example. At the very least, brewers need to issue pump clips, because without those you're not going to sell a beer. Distribution of pump clips tends to be pretty good."
But he urges brewers to think laterally: "Why use 50% of your marketing budget for something that is just going to be thrown in the bin? All that happens then is that the accountants come along, call it wasted money and axe next year's budget."
BUYER COMMENt: My View on the market
Geronimo Inns commercial director Ed Turner
"The ale-drinking market is much broader than it used to be - an increasing number of younger people are drinking it. The market is always going to be male dominated, but women are becoming more important customers as well.
"I put that down to more innovation of supply, and the fact that brewers are targeting young people now. A good example is Otter bitter, which is marketed with plenty of humour. Pubs are also getting a lot more help with ale, thanks to positive action such as Cask Marque.
"Ale is branded so strongly on pump clips these days that everyone can find what they are looking for. And the likes of Young's and Fuller's have been doing much more newspaper and magazine advertising. That's a far better route than using PoS, which just clutters the bar. You don't have any control over it. You spend a vast amount of time designing how you want the pub to look - then it's spoiled by all this paraphernalia.
"Adnams Bitter does the best for us, and we are optimistic about Fuller's London Pride, which we are just introducing.
"Overall, we are increasing the number of pumps - the average was two per pub when we started, and now it's more than three."
