'Quality is single most vital issue'
In an exclusive interview with The Publican Colin Pedrick, on-trade managing director for Interbrew UK, speaks about the brewing giant's commitment to beer quality. Adam Withrington posed the questions.
- Q How important is beer quality to your business?
A I think beer quality is the single most important thing for the UK's on-trade retail business. At the end of the day the unique point of difference between the on-trade and the off-trade is the ability to be able to enjoy a good draught beer in a nice environment and too often you are let down by the quality of the beer. If you look at lots of food-based businesses where the ratio of wet and dry sales are 50:50 or 60:40 everybody knows there is a picture of exactly what the dish should look like before it leaves the kitchen. So why isn't there a similar attitude with beer, where everyone has a picture of what it should look like when served?
Q What are you doing to ensure this happens in the on-trade with your brands?
A Well, look at what we have done with Stella Artois. In the last year we have done 35,000 quality calls. We are sending people into outlets, not to sell anything but to improve the quality of beer the licensee has already chosen to offer. Our people are there to make sure the staff know how to pour it, what the temperature should be, what the head size should be, how to clean the glass properly, what cleaning agents work best etc. Stella Artois has probably got 37 people out in the field just looking at quality. These are not the brands dispense people or cellar service technicians. They spend their lives looking at pint dispense, saying: "just tilt that a bit more will you… pull that a bit more like that".
Q What do you say to those who criticise Stella for being too cheap, when it is marketed as "reassuringly expensive?"
A If you look at the price of standard lager in any of the leased pubs, managed pubs or freehouses and then look at the price of Stella Artois there will be a differential. It will be more expensive. If you are looking at £2.50 for Stella, for example, you are seeing standard at around £2.20. So you are paying a bit more.
Q Despite that, you cannot deny there is widespread criticism of Stella in the trade.
A The best thing we can say about the position of Stella in the trade appeared in The Publican's Market Report. There were two great charts, one was the most stocked beer and the other the most desired. Stella was number one in both and the differentiation between number one and two was greater than in any other category.
I believe that if we had dumbed down our marketing we would not be in the strong position we are in today. I don't feel that the brand is under pressure from the trade - the survey bears this out. I think you have to do what you think is right and what is important to us is beer quality. Would Stella be better off doing scratchcard and drip mat promotions? I don't think so.
Q What about the massive discounting of brands like Stella in the off-trade?
A Beer is unfortunate because it is a successful category - it allows supermarkets to drop their prices to help them to grow footfall at critical times of the year. Clearly we would much prefer it if they didn't promote our product at some of the pricing points they do.
But we are starting to see that they want to make up their margins on speciality-type products and are starting to devote a lot more space and imagination to the way they present beer - where it's positioned etc. I feel this is something we want the on-trade to consider - how to introduce consumers to more expensive, higher-margined imported brands.
Q With your initiatives to improve beer quality together with those of a number of other suppliers and retailers do you think there is an "initiative overload"?
A If you had said five years ago that we would be in the position we are in now as far as beer quality goes, I would have accepted it. There was a lot of apathy surrounding beer quality at that time. Now the focus is on giving the consumers a good experience in the pub and it's in the pub companies' interest, as well as the suppliers', which is why you are getting all these interest groups coming together. Beer is a big, big church and there are lots of different things to try. With wine, people are quite prepared to buy a quaffing wine and on other occasions to pay for a more expensive bottle when the occasion warrants it. It should be the same for beer.
Q What plans does Interbrew UK have for Bass?
A We believe this brand will have a long-term brewing future once we are established in the Marston's brewery in Burton-on-Trent. We have learnt a lot about Bass over the years. We went along a route of brand building initially and I think you have to put focus on retention - something the regional guys have done very well. We launched Bass as a beer that you could put anywhere and I think we've learnt from that. Going forward, our bars initiative and promotional activity will be focused more on working with licensees in retaining the beer on the bar - because it is a great beer. In the next year or so I think you will see a different Bass. We're going to really get behind it and get the brand into growth. We're confident about that.
