While cost pressures remain a challenge, many highlighted clear opportunities in premiumisation, differentiation and the rapid growth of low and mid strength options.
The session, supported by the EU’s ‘More Than Food and Drink’ campaign, brought together freehouses, multi-site operators, brewers and managers for a lively and constructive discussion about pricing, consumer behaviour and the future of the bar.
Room for growth
Across the group there was strong confidence that the beer category still offers room for growth. Operators reported consistent engagement with premium products, a new wave of curiosity from younger drinkers, increased interest in European beer styles and the ongoing shift towards lower strength options.
Several also noted that their premium ranges continue to outperform, helped by customers seeking more considered, higher quality drinking experiences.
Many operators highlighted that, despite unpredictable footfall, they are seeing customers spend more per visit, embrace discovery-led drinking, and respond well to improved staff knowledge and clearer storytelling on the bar. Some also described success pairing beer with food, creating new occasions and driving a higher spend per head.
“The pub has shifted from somewhere you went every day to a treat,” said Paul Frost, who runs The Langton in Bristol. “When it’s a treat, people say, ‘don’t worry about it, we only do this once a month’”.
Rob Moore of The Keynsham Courtyard said the “professional drinker” culture is fading, with customers now seeking atmosphere and experience over volume. “You’ve got to create reasons for people to get off the sofa. It’s all about atmosphere and experience”.
This sense of opportunity set the tone for the wider conversation, even as operators acknowledged the ongoing pressures shaping day to day trading.
Trade patterns remain volatile
Despite the optimism around product trends, operators were clear that day to day trading remains challenging and unpredictable.
Matt Crowther, who runs Beer & Coffee Co with six pubs and a Greek restaurant, described current trading conditions as “resilient, although unpredictable,” adding that turnover remains healthy but profitability is under strain due to relentless cost increases.
Colin Johnson, who operates multiple sports bars across the South under SC Taverns, said trade now feels like “buying a lottery ticket every week,” with expected high-performing days sometimes collapsing due to weather or shifting footfall patterns.
John Ellis, who has run The Crown in Oakengates for 30 years, said traditional trading rhythms “have gone out the window,” noting that Thursdays used to mark the start of the weekend but have now become one of the quietest nights of the week.
‘Tipping point’
Most operators agreed the sector is well beyond what one referred to as the “tipping point” on pricing.
“We just have to keep putting the prices up,” said one operator. “Trade is up but profit is the same”.
At SC Taverns, Johnson highlighted the impact of rising rent and reduced credit terms, which leave wet-led pubs particularly exposed: “Your pricing is not just about cost price or selling price. It is everything from rent to energy to credit terms. If you misjudge your margins, your business fails at the first hurdle”.
Frost argued pubs are no longer competing primarily with neighbouring venues but with the value of staying home. He said the rise of the “treat economy” means customers now weigh a pub visit against staying in with supermarket beer and streaming.
Frost explained: “We’re competing against Netflix. How much value can we add to our products to come in when you can buy a Birra Moretti bottle for £1 pound in a supermarket and we’re selling it for £6.25 a pint.“
He said pubs must therefore build value into the experience beyond the product itself: atmosphere, service, food and the social element.
Several operators criticised the purchasing and pricing structures of major pub companies.
Julian McLauchlan, who runs Guerilla Pubs with 11 sites, said he has seen improvements over time in his relationship with Stonegate: “When they started 30 years ago it was a very different world. I’ve actually had a better relationship with Stonegate than with some others. There is bargaining to be done if you bring them a proper plan”.
Other operators raised concerns about pubco ranges and wholesale costs more broadly. Johnson noted: “The range offered by some procurement teams is appalling. They want you to sell products the customer doesn’t want at a price you can’t afford to sell it at”.
Premiumisation drives spend
Many operators reported customers visiting less frequently but spending more per visit.
McLauchlan said younger consumers are choosing premium products, rejecting the assumption that low-priced beers appeal to students or younger drinkers. “We put in a cheap lager thinking students would want it. Literally no one drank it. They all drank Neck Oil. It’s a completely different market now”.
Low and mid-strength beer
The trend toward lower-strength options continued to dominate the conversation.
Mark Dredge – beer writer, presenter and ambassador to the EU’s ‘More Than Only Food & Drink’ campaign
"Low and no alcohol beer has evolved into one of the most important growth areas in modern drinking culture. What began as a niche for designated drivers or January abstainers has become a year-round expectation, driven by consumers who want balance without compromising on flavour, experience or social connection, in a shift that is visible across all age groups.
"Quality is the driving force behind the category’s rise, with many good quality options available to operators. European brewers with strong traditions were among the first to embrace innovation: Germany produces outstanding alcohol-free lagers and wheat beers, including styles linked to Münchener Bier PGI, while Spain offers high-quality alcohol-free lagers known for their clean refreshment. Denmark is also setting the pace with hop-forward alcohol-free IPAs that mirror the flavour profile of full-strength craft beer.
"For hospitality operators, the key is visibility and normalisation. Alcohol-free choices should sit confidently on menus, not as an afterthought. A draught alcohol-free option can be transformative, giving anonymity to those who prefer not to drink alcohol and helping make moderation feel entirely mainstream.
"With rising interest and improving quality, low and no ABV beer from the EU represents a clear opportunity for venues to broaden their offer, increase dwell time and show genuine commitment to mindful drinkers."
Dredge added that alcohol-free beer has become ‘huge’. I’m always excited if I see draft alcohol free, especially if it tastes good,” he said. “I’ve come to appreciate a higher quality of experience”.
Crowther said mid-strength options are becoming vital as drink-driving enforcement tightens, with customers mixing standard lager with alcohol-free to create what they call a self-made “2% road runner” beer.
Ellis noted a significant rise in quality 3.4% beers after the duty change. “There are plenty of breweries doing really good 3.4s now. They drink like a 4.2,” he said, describing them as a key part of his range.
A point of difference
Oakengate operators John Ellis and Tanja Dicker have built a strong reputation for European beers, stocking around 50 foreign lines.
“It took a lot of work to convert customers,” Dicker said. “Some unfamiliar beers didn’t sell at all. You have to educate people”.
Ellis added: “We’ve always focused on differentiation. One of the most important decisions we made early on was not what to stock, but what not to stock”.
While distribution challenges have grown post-Brexit, operators agreed that regional European beers still offer a powerful sense of provenance, helping justify premium pricing.
Food pairing
Rob Allcock, who runs The Longs Arms in South Wraxall, has successfully integrated beer into the menu. “We pair different dishes with different beers or wines. It works really well and increases the spend per head,” he said.
Others said small snacks like toasted sandwiches, cheese platters or premium crisps are helping extend dwell time and drive another round.
Dicker noted their introduction of premium crisps such as pheasant, wild boar and duck flavours, saying customers are slowly becoming more adventurous when offered a story and a pairing suggestion.
Looking ahead
Asked what they want to take into next year, operators mentioned expanding premium ranges, trialling cask in new formats, improving staff training, and pushing for more differentiation.
Moore said he is considering introducing cask at The Keynsham Courtyard “in a quirky way” to test demand without a full cellar investment.
McLauchlan stressed that for tied operators, ambitions remain constrained. “If you’re tied, it is difficult. It’s not always in our hands”.
Despite challenges, operators remained confident the beer offer can be a powerful lever for rebuilding value.
As Johnson said: “Customers are coming out less, so they’re spending the same money across fewer visits. The question is how we give them a reason to choose us”.
