Bouncing Czech

Adam Withrington meets Budvar UK's Neville Hall to find out more about John Harley's departure and the brand's plans for the future.

There can be little doubt that one of the more surprising drinks stories of the year took place in February when John Harley, chief executive of Budvar UK, suddenly quit. It was a bolt from the blue. And it has meant that things have gone rather quiet recently for one of the industry's more dynamic and interesting brands.

However, there has been a subsequent merry-go-round of changes at the top and it has given the chiefs at Budvar UK a chance to refocus. With finance director Tony Jennings appointed chief executive in March and former on-trade sales director Neville Hall now sales and marketing director there could well be a change in direction about to take place at Budvar UK.

The Publican met up with Neville and he spoke about John's departure and Budvar UK's plans for the future.

John Harley had been at the helm of Budvar UK since it was founded at the start of 2002, formed when the brewery bosses in Prague decided to end its relationship with the brand's distributor in the UK - BB Supply. John, who was marketing manager at BB Supply, was appointed as chief executive at the new company.

Budvar performed well under his stewardship with consistent growth in the brand and in the category. Indeed, he became almost a figurehead for the imported beer sector as it began to get more recognition from the consumer. So much so that last year John was elected chairman of a new trade association: the National Organisation For Imported Beers (NOFIBs).

So leaving when he did seems a little puzzling, particularly to those in the industry. And unsurprisingly all sorts of rumours abound as to why he left, the most popular of which is that John, ever the larger-than-life character, had one argument too many with his very traditional Czech bosses.

This is an explanation that Neville Hall roundly rejects. "John set up the business in the UK and got the show on the road. The real reason he left was to concentrate on the wider question of the overall imported beer market. I believe he is really enjoying his continued role as chairman of NOFIBs."

So there is no bad blood between John and his former colleagues then? "Absolutely not," says Neville. "We all still have a great relationship with John here at Budvar. In fact the last time we all saw him was at The Publican Awards. We all sat together and had a great night."

So it seems that John's departure was amicable and there is no doubt he left Budvar in a strong position in the marketplace.

In deciding to continue as chairman of NOFIBs some people might think he has opted to stay out of the limelight.

However, the genuine imported beer category is really gaining momentum.

Bigger players are entering the market, with Interbrew UK asking to join the organisation - thanks to its success with Hoegaarden and Leffe - while with the imminent break up of brand company Ubevco both Coors, which has picked up Sol and Dos Equis, and SAB Miller, through its own Castle Lager and Pilsner Urquell brands, could well become very interested in the future business of NOFIBS.

Neville Hall's plans for the next 12 months​

• Increase draught sales​

"Our draught performance last year grew by 26 per cent. It is now 44 per cent of total on-trade business and we are encouraging further growth. There is increasing pressure on fridge space behind bars and to be honest having a tap on the bar obviously gives the brand more permanence in a venue. But don't think we want to detract from the performance of our 330ml bottles in the fridge."

Introduce kegs from the brewery in the Czech Republic:​

"Our beer used to be kegged by Everards brewery. However, a year ago we decided to test the black Czech kegs in bars in London, instead of the Everards ones. Overnight there was a 15 per cent uplift over the bar. There are a number of reasons for this but one is that the Czech kegs give it slightly higher carbonation, which you need if you are going to serve it on draught all over the UK.

"The one thing we really had to be careful of is that there weren't too many empty kegs returned - it is, after all, a long way back to the Czech Republic! We had no problems in London. We went to Greene King and tested the black kegs and they all came back without problems. We went to Scotland and did exactly the same thing with Belhaven - with no problems. We felt we had to make a decision. Either stick with Everards or go with the Czech imports. We went with the latter and it was resolved without any problem. We never had any problems with Everards - we just felt a change would be a good thing."

Reduce costs​

"This year we do need to reduce our costs - that is a major target for the year, although we are not doing badly. We have 17 employees and raise £17m of revenue a year. That's £1m a head, which isn't bad. Essentially, we need to look at things realistically. In 2003 we enjoyed 47 per cent growth - last year it was only one per cent on top of that. However, if you look at it we held growth and managed to build on it."

Roll out Budvar Dark​

"We will be bringing in our dark beer later this year - Budvar Dark. We will be testing it in London, the North and Scotland first."