Hook Norton: a beer idyll

While there are many breweries situated in beautiful spots around the country, it's hard to think of one in a more idyllic location than Hook Norton.

Tucked away up a narrow country lane in the picturesque Cotswolds village that bears its name, Hook Norton Brewery has been producing ale on the site since 1849, and in the same six-storey Victorian brewhouse for more than 110 years.

This heritage is not lost on those passing through the brewery's visitor centre. Leafing through the centre's visitor book, one comes across many admiring comments penned by people from quite literally all over the world, all imploring the same thing: 'Please don't change; we love you the way you are.'

Moving forward

Tradition and heritage are two strands of Hook Norton's business philosophy that are not lost on James Clarke, managing director of the group for the past five years and the fifth generation of his family to be involved in the brewery.

However, tradition and heritage alone don't pay the bills. While wanting to satisfy the brewery's legions of admirers, Clarke also wants to bring the business into the 21st century. "Things will look the same to the outside world, but we're bringing about change behind the scenes," he says.

While much has been going on already, unfortunate events in recent years have helped shaped the direction Hook Norton has taken.

The death of Clarke's father, David, in 2004 deprived the then-recently appointed James of a guiding hand, Clarke senior having run the brewery for 20 years after becoming head brewer in 1974.

Then tragedy struck again earlier this year, when Richard Gilchrist, the brewery's popular chairman, was killed in a riding accident.

"The chairman's death was a great shock," says Clarke. "Richard was well liked by the staff and it's inevitable that such an event creates uncertainty."

Takeover tittle-tattle

The 'uncertainty' to which he refers was Hook Norton's independence. The brewer was regularly mentioned as a possible takeover target before Gilchrist's death in February 2009.

His untimely passing only served to set the rumour wheels spinning still further, a situation the normally mild-mannered Clarke found to be both a distraction and in many ways disrespectful.

Clarke has always banged the independence drum for Hook Norton, but in the wake of Gilchrist's death that drum had to be hit even harder.

"I stressed at our AGM, which we'd postponed for a few days following Richard's death, that we were staying independent," says Clarke.

"I also stood in front of our board and asked them bluntly what they wanted Hook Norton to be; a brewer, a pub owner, or both. They wanted us to be both. And they want us to remain independent."

Gilchrist's family also backed Clarke's stance, instructing him to tell any potential bidders in what one might describe as classically earthy terms that the business was not for sale. The job of finding a replacement chairman then kicked into gear. "We were looking for someone who was not going to build the company up for sale in order to get a nice bit of wedge out of it," Clarke says.

The brewer wanted an injection of commercial and strategic experience, but also someone who knew the brewing business. A number of candidates were interviewed but it proved to be Jonathan Paveley, formerly commercial director at Punch Taverns and prior to that strategy director at Greene King, who fitted the bill, Clarke says.

"Jonathan has the required commercial experience we were looking for, he brings with him fresh ideas and he has a particularly good understanding of what our values are, namely we're a family company, we've a long-term commitment to the business and we want sustainability. Plus there's our place in the local community," he adds.

Man of the people

With just shy of 50 tenanted pubs, mainly within 40 miles of the brewery, Clarke's own profile in the community in which his business operates is apparent. When driving along the country roads of west Oxfordshire the man is forever acknowledging passing drivers who recognise and signal to the brewery boss.

Meanwhile, despite the current downturn, expansion is on Clarke's mind. He is keen to add sites to the Hook Norton estate "over the next 12 to 18 months", but the group is not leaping in to buy pubs in the way some of its larger, wealthier rivals have.

Finance doesn't seem to be an issue. The brewery has had what Clarke describes as "positive" talks with its banks in recent times, and debt levels are "minimal".

Some of Clarke's optimism on the finance front comes from having two former merchant bankers on the brewer's board.

"Say what you like about bankers, when they're batting for you it's no bad thing," he says.

Having such talent literally on board can be no bad thing in today's economic turmoil.

Last year was a tough one for Hook Norton, as it was for many, with Clarke describing profits as "below expectation" and what he describes as "additional long-term issues relating to property matters", across its pub estate and the brewery, principally a repairs schedule.

Clarke feels responsibility for much of this, since in his words it "cropped up on my watch".

So while it is on the lookout for more suitable pubs to add to its estate, all 47 of the brewer's pubs are undergoing structural surveys, with a view to identifying refurbishment and development opportunities.

"You can't manage something unless you've measured it. We've been looking at the whole business for some time, but Jonathan's arrival has upped the momentum and helped me get a framework mapped out whereby we can prioritise things," Clarke says.

A question of quality

While volumes of beer sold through its pubs have been flat and margins have come under pressure, Clarke is pleased that more of the company's pubs are becoming Cask Marque accredited.

"The quality of the beer had been a bit of an issue, but this is now improving," he says.

Driving forward the retail side of the business is occupying much of Clarke's time.

"There's this issue about 'value for money', which doesn't just mean being 'cheap'," he says. "It means delivering and exceeding expectations. I want to go to a pub where it's clear the people serving me are pleased to be able to do so."

A recent beer and food event in one of the brewer's pubs, the Butchers Arms in Kips Sutton, illustrated this, says Clarke: "The success of the night came from how it was delivered by the licensees.

"Customers will happily pay for the right kind of retail approach and attitude."

Clarke sees food and catering development as areas of opportunity and while the brewery is prepared to help, the managing director believes flair and charisma on the part of licensees is vital.

Other moves include competitions and internal awards to help drive up standards, plus ale trails to raise awareness of the brewer's output.

Encouraging signs

While supporting its tenants, Hook Norton is keen to show them that what they do now to keep their businesses going in the tough times can also help when things eventually start to improve.

"We need to be better at marketing, we need to cut overheads but at the same time drive the top line," Clarke says.

There have been what he describes as "signs of encouragement" this year, with some recent half-decent weather suggesting that people were using the group's pubs again.

The process by which Hook Norton recruits tenants is also being sharpened up, says Clarke, with things like business plans being looked at more.

Again, the arrival of Paveley has "driven this forward", says Clarke.

So, as Hook Norton manages some of the worst trading conditions in living memory, there is no plan to retrench? "No," says Clarke, firmly. "We're keen to go in the other direction. We want more pubs, we want to brew more beer, and to do