Positive but cautious

Cask may be in decline, but forecasts suggest it will return to growth in the next few years. Adrian Tierney-Jones reports

Since discussions around the sale of Scottish & Newcastle (S&N) began, much comment has focused on the fact that this was the end of the last British-owned global brewer. However, of more concern to those at the cask-ale end of things was the future of S&N-owned wholesaler WaverleyTBS, which had made its name supplying cask ale to pubs throughout the country. Whether a brewery was a small outfit or long-established regional business, WaverleyTBS could be relied upon to bring their beer to market.

It wasn't for nothing that Jim Mardell, the company's free-trade director, could claim: "When we say we can move beer from the Orkneys to Bodmin, we really can."

WaverleyTBS PR consultant Lisa Harlow adds: "Cask ale is a key selling point for WaverleyTBS - we've grown the business on it. We are in the unique position of being able to work across the whole category, from small to large brewers. Our niche seems to be in bringing the smaller players to market - so we complement the growth of the 'super regionals'."

But despite its unique position, it won't be until joint new owners, Heineken and Carlsberg get their feet under the table that we'll know exactly what Waverley's future holds.

Cask ale at their heart

With the demise of S&N, which owns John Smith's, the likes of Greene King, Wells & Young's, Marston's and Fuller's are now among the country's biggest brewers. This is great for the category as they all have cask at their heart.

Greene King managing director Justin Adams sums up the situation neatly: "Since 1799, Greene King has had a reputation for brewing some of the finest quality cask ales in the country. Cask ale is our passion - and while consumer demand for real ale exists, we will continue to brew and serve it with the same commitment and enthusiasm we have maintained for more than 200 years."

So is all rosy in the cask-ale market? Encouraging noises about the renaissance of cask ale were first heard following the publication last autumn of The Intelligent Choice, a report funded by various stakeholders. Although a 5% decline in the total beer market was noted, the report said many cask-ale brewers were experiencing steady growth in their volume - demonstrating that cask ale was forecast to return to growth within the next few years.

"Interest in cask ale is definitely on the rise," says Wells & Young's managing director Nigel McNally. "In terms of being a sector in the overall beverage market, cask ale is doing better than most." Further north, in Manchester, JW Lees managing director William Lees-Jones is equally positive: "We have experienced a steady increase year-on-year for sales of our cask ales. Since the launch of three new beers at the beginning of this year, JW Lees has already seen a significant rise, which is expected to continue throughout the year."

Other breweries are sounding similarly positive, if cautious, notes. London brewer Fuller's Beer Company managing director John Roberts is very pleased with the way things are going. "The smoking ban has hit beer volume in the on-trade with 5% disappearing, but this was predicted. And it has hit lager more than ale." He is also content with the growth in the premium-ale market, a point echoed by Adams at Greene King: "The overall health of the market is also evident in the success of premium products such as 6.5% abv Abbot Reserve - one of the best-performing seasonal beers we've ever had."

It never pays to be over-confident, but there are definite signs of a growing market for cask ale. Research has shown that those who drink cask ale are affluent types, who want to sit in characterful pubs, rather than knocking down their beer before moving onto another venue; they are older but not dyed-in-the-wool, and the interest in crafted and local food has spilled over into the beer market.

Quality's being tackled

In response, cask-ale brewers have introduced various initiatives to improve the public face of cask ale and show customers what wonderful products they make. These initiatives include a think tank known as Why Handpull? and various in-house training schemes, which means that the all-important issue of beer quality is being tackled.

Meanwhile, educational campaigns such as Cyclops also have their place, as Camerons marketing director Yousef Doubooni explains: "We believe that offering the customer choice and variety is the key to growing cask ale," he says. "We produce four standard cask ales, available all year round, plus monthly guest ales. We provide a simple tasting-notes system based on Cyclops, to help pub staff and consumers understand the look, smell and flavour of the beers.

"Cask ale also has a fantastic opportunity in food-led outlets. Our statistics show that food-led outlets have seen a slower level of decline and in many cases are showing an increase in overall turnover as a result of the smoking ban and other factors. Cask ales have an opportunity to align themselves with this food market, and hopefully they will see sales increase."

Naturally there's still a lot of work to do in cask-ale marketing - for every convert, there are likely to be several sceptics. Wadworth marketing manager Paul Sullivan says: "The task is to get consumers to understand that cask ale can offer a range of flavours. The industry needs to put glasses in hands in an educated way, follow the example of wine and imagine what the opportunity could be if cask ale is done in an empathic way."

Cask-ale producers are finally realising what a wonderful product they have on their hands. Despite its niche status, it is worth about £1.4bn and accounts for 11% of on-trade beer volume. However, clouds still loom on the horizon: there is a growing perception that the economy is due a downturn and that customers don't have as much to spend, while brewers must contend with the high prices of raw materials. Yet this provides an exciting challenge: cask ale is a unique drink that is only available in the pub. For many consumers, its sense of location gives it a loyalty factor that is shared with the local football team or even local regiment. At between £2 and £3 a pint, it's an affordable luxury - and with the drive for quality, innovation and a sense of connection with the consumer, the market for cask ale is looking very positive indeed.