Ale lovers 'will pay for quality'
Pubs need to recognise the opportunity that now exists to charge more for high-quality, premium cask-ale brands, according to Wolves & Dudley Brands boss Alistair Darby.
Traditionally, cask ale tends to be sold in pubs for less than lager brands - despite many consumers regarding cask ale as a premium product.
Research shows that cask-ale drinkers, when asked how much they have just paid for a pint, often cite a price of 30p more for a pint of cask ale than they have actually paid.
Darby said: "Consumers think they're paying more for it than they actually are. They recognise there is something different about cask ale. They recognise there is a difference in the effort that goes into a handpull beer compared to other beers.
"So if pubs get it right with decent brands I'm absolutely convinced the consumer will pay more for it - assuming the quality is right."
Darby claims that cask ale is one of a handful of areas where licensees can earn additional margin - food is another.
The opportunity for licensees to increase lager prices is limited because the gap between on-trade and off-trade prices is already so large.
"The price gap between ale in the on-trade and off-trade is much tighter than with lager. So you could argue that if there is any elasticity in on-trade pricing it's in ale much more than in lager."
Darby admits that there will be continue to be volume decline for cask ale, but believes the consoling factor should be "value" growth - for licensees and brewers.
He added: "I think a good place for the cask-ale market to end up is high value but probably less volume. I think the time for the value debate is now. This is the time to put effort into cask ale."
