The Big Interview: David Grant
Someone had rudely slapped a grand, imposing building in front of the Moorhouse’s brewery. Or so it appeared. Trying to find my way round it, I suddenly realised that the grand, imposing edifice was Moorhouse’s.
This is the way brewers used to build their breweries. It makes Burnley, a largely neglected Lancashire mill town, slightly more important. And it makes a statement — a statement about both the achievements and aspirations of Moorhouse’s MD David Grant.
With the brewhouse itself fronted by a gleaming reception flanked by conference and training rooms, it seems to symbolise Grant’s belief that the struggling microbrewer he took on 10 years ago is now elevated to the status of regional brewer.
And it’s not just symbolic. The new plant triples Moorhouse’s capacity, enabling it to produce 1,000 barrels a week with ease.
“The business had grown so dramatically that we had a decision to make about what to do,” he says.
“If you stand still, you go backwards. So we’ve gone for it big style.
“It’s changed the local landscape. We’ve had Vince Cable here, and the Lord Mayor. Nick Clegg launched his manifesto here.”
Yet there were many moments when this former brewer of low-alcohol temperance ales might have disappeared altogether.
By the time Grant was drafted in by current owner Bill Parkinson it had already been rescued several times. With an impressive career behind him, working for major brewers and launching up a couple of post-Beer Orders pubcos, Grant was looking for a different challenge —and he certainly got it.
“I was fed up with working for big organisations, being told what to do, being pushed from pillar to post with no career direction. I’d actually gone for the Moorhouse’s position two years previously — and it was the only time I was gutted that I didn’t get a job I’d applied for.
“I thought it would be great to have a bit of stability in a smaller business. I accepted the job on a pittance, but Bill said he’d leave me to run it as I liked, and that appealed to me. And he’s never interfered. I give him the monthly accounts and that’s it.
“But when I started, it was a nightmare. I’d seen the 1999 accounts and they looked good. But then the 2000 accounts came through and we’d made a loss of £76,000. I was gobsmacked.
“We were nearly bankrupt. In my first week we sold 34 barrels of beer. We were brewing a 1960s-style range — it was just awful, and the six pubs we had weren’t great. Everything had to change. I had a clear-out and brought in my own staff.
“The next five years were about growing the business, re-branding products, launching Blond Witch and the seasonal beers and getting people to work as a team. We put some pride back in the business.
“Progressive beer duty saved us £120,000 a year and we ploughed it all back.”
Sales grew steadily, at an average 17% a year, and as the old Moorhouse’s brewery neared capacity, plans for the new home were conceived. The credit crunch held up progress for a while, but a little thing like that wasn’t going to stop Grant.
“We started a bit gung-ho. The money wasn’t forthcoming from the banks and we went ahead without it. That was a bit hairy, but it was fine, and everything came together as we’d planned.”
Brewing began on the new site a year ago and the whole thing was completed in June. Grant is delighted with the beer that’s coming out.
“The quality is spectacular. We’ve already won an international brewing award for Black Cat and that’s phenomenal. We had only one complaint, from a customer in Keighley, and even he’s started to take our beers again.”
He only wishes some pub operators would take quality as seriously as he does.
“You have to tender for everything these days, and it’s all on price. They should take quality into account. If you want a Rolls Royce you just go out and buy it.
“Drinkers care about quality; they have more knowledge these days. But in business-to-business dealings it’s only about price. One day they’ll get some beer they can’t sell and I can’t wait for that to happen. It might teach certain people a lesson.”
With raw material costs on the rise, Grant believes “something’s got to give” in the quality-price equation. As it stands, “margins are tight, and we’ve still got to pay for a £4.2m brewery, which makes them even tighter”.
He’d like to expand Moorhouse’s tied estate: two managed houses that are breaking even and four tenancies, three of which are in growth.
“They’ve all suffered a bit because they’re wet-led community pubs. But they’re clean and tidy — they’re good operations.
“The better pubs around here are doing extremely well, the mediocre pubs are doing very poorly, and that’s the same anywhere. Community pubs aren’t faring as well because habits have changed. People are worried about whether they’ll have a job tomorrow. Even supermarket sales have fallen off a cliff.
“But there are positives. In good quality pubs more people are drinking early doors and eating there.
“I’d love to have a pot of money to buy freehold properties, but our gearing is too high at this time. So we are looking for free-of-tie leases and I’m sure that the right pubs will be coming onto the market.
“I don’t have a goal in terms of numbers. I just want pubs that are profitable for me and the licensee.
“And the main focus has to be on doubling our volume at the brewery by 2013. We have to do that to repay what we’ve borrowed.”
It sounds like a tall order, but with an August behind him that was no less than 35% up on the previous year, Grant seems to have a good idea where it’s going to come from.
“We are trading very successfully with Wetherspoon at the moment and all five beers in our core range are now in-bottle — the packaged business has gone from 2% to 10% of our sales and it’s helped build awareness for the brand.”
The Cask Ale Club, a joint venture with three other brewers — Crouch Vale, Mordue and Elgood’s — has taken Moorhouse’s beers further afield, and in return the Burnley brewer is able to offer freetrade accounts a wider range within a single delivery.
“There were some pubs taking seven or eight deliveries a week. This way they don’t have to do that. They’re getting a great variety and it’s saving them time.”
“There are always opportunities,” he concludes. “More freetrade pubs are around now, and there are still businesses we don’t currently trade with. There’s lots to go for.”
My kind of pub
“Any pub that offers great quality and service is a favourite with me. My local’s an Enterprise pub, the Shoulder of Mutton in Holcombe, Lancs. You see the same customers in there seven days a week, and every drinker knows every other drinker.
“The service is spectacular, the food is great and there’s always a choice of beer. My wife likes going there because it serves a proper gin & tonic and the wine choice is very good.
“Or I can take a £2 taxi ride to the Hare & Hounds at Holcombe Brook — it has 16 handpumps!”
“My real favourite is Ty Coch Inn, a Marston’s pub at the head of the Lleyn peninsula in North Wales and about 45 minutes’ walk from the nearest road.”
Key dates
1865
William Moorhouse founds mineral waters plant in Burnley
1904
Moorhouse’s starts to specialise in low-alcohol ‘hop bitters’ for temperance bars
1978
Michael Ryan buys brewery from Moorhouse family to produce cask ales
1982
Hotel and nightclub owner Alan Hutchinson takes over and launches Pendle Witches Brew
1984
After working in sales for Trebor Sharps and Philip Morris, David Grant joins the brewing industry at Courage’s Tottenham depot
1985
Hutchinson dies. Manchester businessman Bill Parkinson steps in to save the brewery
1986
Grant moves to Wilson’s Brewery in Manchester, where he rises to tenanted trade director for Grand Met North
1989
Following the Beer Orders he helps set up pubcos as operations director of Centric and Ascot Holdings
2001
After a brief stint at Marston’s, Grant becomes general manager of Moorhouse’s
2004
Appointed managing director
2008
Moorhouse’s reaches full capacity
2010
New brewhouse commissioned
2011
Visitors’ centre and training facility opens
