Like the rest of hospitality, we were left reeling by the November Budget, especially the Government’s own goal on business rates for pubs. We were proud to play our part in reversing that error and in the continued cross sector battle for a fairer tax regime between hospitality and the online community.
Government is now aware of our collective political influence, our economic importance and I remain optimistic of a material rebalance before the next election. Recent world events hopefully mean Government will be more inclined to look after British business than US-based tech giants when it comes to tax hikes.
But we can’t just blame Government. There are structural failures within the hospitality sector that need to be addressed.
A case in point is the stagnant nature of the UK beer market, which last saw modest growth in volume in 2019.
Job losses
The past fortnight has seen the fire sale of the punk-cum-corporate BrewDog, the closure of Sharp’s Brewery by Molson Coors and the purchase and closure of Innis & Gunn by C&C Group. Each one of these has led to job losses and the loss of local goodwill built up over many years.
In the case of Sharp’s Brewery, Molson Coors is well within its rights to relocate brewing “to unlock efficiencies and cost-savings to fuel its long-term growth”, but I wonder what proportion of these benefits will ever be seen by publicans or beer drinkers in lower pricing?
UK beer is a ‘supply push’ not ‘demand pull’ market. Where 80% of pubgoers want to see independent and global beer brands sit alongside each other yet locks out independent beers from 60% of outlets. One where drinkers say they are bored of the same old brands while the innovation and vibrancy of independent brewing is excluded. Did you realise your local brewer will almost certainly now brew a high-quality, good-selling stout and a lager?
Cask beer dead? Over Christmas, independent brewers saw 20% volume growth on marginally higher distribution in outlets we supplied directly. Beer drinkers are smarter than they are sometimes given credit for. They are looking for local provenance and independence but are too often left disappointed.
Demand is booming
I recently visited Jennings Brewery in Cockermouth to see how they have emerged from the ashes of Carlsberg’s under-investment in brand and site. Back in local hands, demand is booming across all trade channels, production set to increase further and a new taproom open that’s welcome and busy addition to the Cumbrian beer scene.
It is also a pleasure to see the positive coverage Waitrose is getting for their support for ‘Indie Beer’, the campaign that highlights genuinely independent local beer brands from those like Beavertown and Camden that hide global brewer ownership.
Waitrose wants to support independent local businesses, offer what their customers are demanding and, in doing so, will make more money themselves. It’s a sad reflection of the on trade that this approach is seen as so radical.
I believe that independent beers alongside global brands can exist in a ‘1+1=3’ relationship that rejuvenates the beer category and, with it, increases footfall, sales in pubs and profitability.
The nation’s independent brewers will need no persuading to raise a glass to that on 18-19 March in Liverpool.
