The Big Interview: James Staughton, St Austell Brewery

Think of Cornwall and what invariably springs to mind for most includes pasties, cream teas and Rick Stein. Ask anybody in the on-trade and they will probably add Tribute ale to any list of successful Cornish exports.

The phenomenal success of its flagship ale over the past decade has helped drive family brewer St Austell’s growth into a business turning over more than £100m. Tribute has enjoyed 20% year-on-year volume growth since it was launched in 1999, with production reaching an all-time high last year.

The man at the helm of the business is James Staughton, a fifth-generation family member at the brewery who, if fate had dealt a different hand, would have gone into party organising.

After leaving university he had a stint working for a friend’s venture in London and seriously considered eschewing the family business for the party lifestyle. “I absolutely love organising parties,” he says. “Whenever we organise events here, like our 150th anniversary party, I like to do it. I love it.”

St Austell Brewery was founded in 1851 by Staughton’s great-great-grandfather Walter Hicks. The former first joined the business in 1980 aged 21 on the wine and spirits side, working his way up the ladder and completing the journey to managing director in 2000. “Walter Hicks was a wine merchant and maltster before he became a brewer. As a company, we have always taken wine seriously and enjoy selling it,” Staughton says.

But it’s beer and pubs, not wine, that we’re here to talk about. I ask about his impressions of the trade back in the early days. “Cornwall in 1980 was a very different place from what it is now,” he says, a little mysteriously. “In those days pubs weren’t very female-friendly, the food was pickled onions and crisps, and it’s fair to say customer service wasn’t top of the list. They had a very different feel.

“What has been the common denominator over the years is the importance of the licensee, and pubs’ community involvement. The publican is still the critical element of any successful pub and it’s something of which we, as family brewers, are very conscious. We put a lot of effort into getting the right people into the right pubs.”

Cornish Embassy​
St Austell currently operates an estate of c.170 mostly tenanted and leased pubs across the south-west. Staughton has made no secret of the fact that he would like a single flagship site in London, called the Cornish Embassy.

“With the success of Tribute it would be great to have a showpiece outlet in the capital,” he says. “We’re still looking as it’s an elusive site to find. We’re not necessarily looking for a pub site; we would like a bar/brasserie all-day food operation — it would be easier to make that have a ‘feel’ of Cornwall about it. Then we can look at other city centres where the concept might work.”

Staughton is modest enough to say that, while he has overseen a period of real growth for the business, success is mainly down to having the right team in place. “Getting the beers right was our top priority,” he says. “The success of our beer has been linked to [head brewer] Roger Ryman’s appointment and he has been a key member of the team from an early stage.”

Significant capital investment has followed in recent years, to the tune of almost £6m, with a new cask operations plant, brewing plant and bottling line. According to Staughton, this investment has been about getting the company in shape for the future. “We have a five-year target of producing 90,000 barrels a year. We’re doing 75,000 at the moment, so it’s certainly a realistic target.

Its export business is also growing — St Austell now supplies 15 countries, with Proper Job the top-selling bottled ale in Norway. Last month the company announced the purchase of The Real Beer Company, a specialist drinks wholesaler, to complement its composite free-trade business.

On the pub side, Staughton would love to grow the estate to 200 and see pubs up their game when it comes to their food offer. “What we are trying to do is roll out the terms and suppliers that we have on the retail estate into the tenanted estate, so they benefit from our buying power at an individual site level,” he says.

“People’s expectations of pubs are changing. Everything is important; in many cases customers want five-star service for one-star prices. We have to be able to live up to that when people are spending their hard-earned cash.” He cites Geronimo and Everards, among others, as retailers worthy of admiration.

Cash cow​
One of the many other hats Staughton wears — he also undertakes various voluntary and charitable roles in Cornwall — is that of chairman of the Independent Family Brewers of Britain (IFBB). He took on the role last October, succeeding Paul Wells. “Our task as family brewers is to continue to grow the cask-ale category while promoting our pubs and inns through the recruitment of the industry’s leading licensees,” Staughton says.

The IFBB is a fully paid-up supporter of Jacques Borel’s VAT Club, lobbying for the reduction of VAT on beer and food served in pubs, as well as pushing for lower beer duty and company taxes. Last year St Austell paid £25m — a quarter of its turnover — in taxes to the Treasury, which is an unacceptable figure, according to Staughton.

“Our trade cannot just be seen by the Government as a cash cow. The trouble is that, historically, booze and cigarettes have been seen as an easy way to raise money. But now duty is going up and it’s not raising any more money for the Treasury. The law of diminishing returns has hit us,” he says.

Staughton calls on the Government to be brave and introduce a VAT cut, as a quick-fire way of kick-starting the economy. “There’s no quicker way to boost the number of people coming into pubs and restaurants than by cutting VAT. Get people using pubs more and we’ll employ more people,” he argues.

Our interview took place before the Government’s announcement on plans for a statutory code for the industry. However, Staughton later told the Publican’s Morning Advertiser that the IFBB was pleased that its members’ pub estates would not be affected by the proposals.

“We are awaiting further clarification on what is being consulted on, and the IFBB is currently in discussions with the Government over the details,” he says.

And what of the future for the Great British Pub? It’s a positive one, Staughton insists. “One of the great things about British pubs is their diversity and the fact they appeal to a broad audience. Long may it last that we’re not stereotyped, high-street offerings,” he says.

“What I do want in our sites is bloody good service, good beers kept well and a friendly environment. That’s our offer.”

Key dates​
1851​
St Austell Brewery is founded by Walter Hicks
1863​
Hicks buys his first pub, the Seven Stars Inn in St Austell, Cornwall
1959​
James Staughton is born in London
1980​
He joins St Austell Brewery, working in its wine business
2000​
Becomes managing director of St Austell Brewery
2012​
Is appointed chairman of the Independent Family Brewers of Britain