Everard's Project William set for expansion

Everards, the Leicester-based brewer, is set to add more pubs to its successful Project William stable.

The scheme, started in 2007, sees the company buy closed or run-down pubs, refurbish them and then let them out to small brewers or private individuals.

Everards chief executive Stephen Gould said he had four new pubs lined up, with two currently in legals, taking the number of pubs under the Project William umbrella to 17.

"We have 10 brewers on board who are SIBA members, and three individuals who also rent the pubs from us," Gould said.

Brewers leasing a Project William pub from Everards do so on a three year tenancy which is free of any ties on cask ales, enabling them to offer their own products.

They are obliged to take Tiger, Everards' flagship ale, and are tied on lagers, ciders and bottled beers. Rent works out at about £30,000 a year "which sits nicely as a percentage of turnover", Gould said.

Brewers involved in the scheme include the Titanic Brewery, headed by SIBA chief executive Keith Bott, which has three Project William pubs; Leicester's Steamin' Billy brewery and Brampton Brewery in Chesterfield.

Everards generates interest for the scheme through its close relationship with SIBA, said Gould.

"We do a good job on these pubs and through our reputation build up a profile we can use. We're talking to another six brewers about doing deals with them," he said.

Gould says the potential tenant is crucial in the arrangement.

"We buy a pub based on their knowledge," he said. "They also work alongside us on things like the design and fit-out of the site. It's about delivering what they want from the pub."

Typical acquisition prices range from £105,000 to £285,000, with the pubs generally being located within easy reach of the Everards' brewery.

"Set against what you might call the 'normal' cost of an acquisition we find the arrangement works out well for both sides," Gould said.

Everards was seeing what Gould described as an "oversupply" of the sort of pubs it was looking to add to the scheme.

"We can pick and choose but we are keeping our feet on the ground and buying competitively," Gould added.