Family fortunes
With ready-mix cocktails, mini casks and banana beer, Charles Wells is making a brave move away from traditional brewing. By Lorna Harrison
Images that spring to mind when you think of traditional family brewers could well be real ale, horse-drawn drays and olde-worlde pubs with real log fires.
Trendy high street bars and cocktails would come way down the list but Bedford brewer Charles Wells has been brave enough to experiment outside the boundaries of "tradition" - and it looks as though it's paying off.
The brewer, established in 1876, is positioning itself as "leader of innovation in the drinks industry". It justifies this by its huge success with Bombardier Ale, along with a lucrative export market, reaching countries where bigger rivals have failed to make a mark.
Along with its newly-launched Muse cocktail range, Charles Wells claims its bold stance on new drinks products is knocking spots off national and international brewers.
Devised and launched in response to tenants' demands, Muse is a range of seven cocktail mixes that can be diluted at the bar.
Sales and marketing director Nigel McNally explained: "A tenant told us he was getting increasing demands for cocktails but it was taking up to three minutes to mix them. Muse gives barstaff the opportunity to mix and serve within 30 seconds and go on to sell five other drinks in the time it would have taken them to mix from scratch. It is a fantastic new category for us."
Maybe, but not one that you would automatically expect a brewer like Charles Wells to be dabbling in.
Yet Nigel is adamant that the only way for any company to move forward is to meet the demands of today's customer.
"If you are going to prosper you have got to widen your horizons and need to think about beverages in general," he said.
"I think there's a lot to be said about single-minded companies like Greene King and Fuller's and I admire their approach but we must make the most out of growth opportunities.
"The launch of Muse has opened our eyes to many other opportunities. It gives us great profits and the consumers like it, so much so that the miniature version is being sold by airlines, on ferries and trains and we have further plans for the brand later this year."
Nigel stressed that the brewer, which has a passion for its staff and pride in its family roots, firmly wants to remain in brewing. So how did this diversification come about?
He explained that around eight years ago, Charles Wells anticipated that there would have to be a change in company strategy. A declining beer market, coupled with the almighty change in pub ownership was taking its toll on brewers.
"It was clear that there was too much supply and little demand," he said. "Breweries were closing and national brewers became over-cautious. Most family brewers sell 80 per cent of their beer through their estate - Charles Wells sells less than 15 per cent of its volume through its estate. We soon realised that to survive it had to be through our brands. "We also realised we couldn't just compete head on with the nationals, we had to be better.
"At the time, Caffreys was being demanded by a number of our tenants. The challenge for us was to come up with something similar - the result being Bombardier. We realised that cask ale was our area. Consumers envisage that you get a better product from an independent than a national and we were able to build on that.
"One area that the nationals have not developed is innovation. They have grown and invested in key brands but, with the odd exception, largely ignored innovation. Charles Wells saw that as an opportunity."
The company invested in new pumpclips, launched an innovative advertising campaign, and patented an illuminated drip tray for Bombardier which had the desired marketing effect. The subsequent link with all things English - and its recent campaign for increased awareness of St George's Day - has boosted its position in the market.
Nigel said: "Back in 1994, Bombardier was in about 50th position in the ale market but it has been growing about 30 per cent a year and at this rate we will catch up to third or fourth position within the next three years."
"Since Euro 96 the nation has really got behind the national football team and the St George's flag," said Nigel. "We simply tapped into that in a non-xenophobic way."
And it's paying off. Off-trade sales around St George's Day in April rose by 63 per cent on the same time last year. Total brand sales across the board rose by 35 per cent for April and May in 2001.
During the Jubilee/England vs Sweden World Cup week, Safeway completely sold out of Bombardier Mini Casks in the 64 stores where it is stocked.
The latest innovation for the brewer is Banana Bread Beer (ABV 5.5 per cent) - a beer that claims to retain the quality and style of a traditional beer, presented with the subtle flavour of Britain's best loved fruit.
Ingenious - devised by a huge team of costly marketers no doubt? Or simply a bit of inspiration as Nigel watched his wife use up some ageing bananas in a favourite family recipe!
As brewers continue to mull over the viability of brewing, it appears that Charles Wells has come up with its own solutions. It's true that the company is not afraid to "have a go". Its innovations are adding to the company's success story and there are strong hints that there's plenty more to come.
Related articles:
Bombardier sales rocket as English patriotism fills pubs (21 June 2002)
New cocktail concept, Muse, to cause a stir in trade (27 February 2002)
