The managing director also told The Morning Advertiser the industry remains “fundamentally overtaxed” and wants the Government to offer a level playing field rather than charity to help.
He said: “I firmly believe in the fundamental role of the pub at the centre of British society and I experience it every week. Pubs are historic but have always adapted. Well-run and invested pubs will continue to thrive. People still want to connect in-person and use pubs for that but the ways in which they do vary over time – be it through competitive entertainment or a family-friendly beer garden.
“Pubs need to know who their specific consumer target is and their expectations. Whether that is cleaner and more accessible toilets or meeting the growing demand for a great-tasting 0.0 lager on tap.
“I take pride in saying we put our money where our mouth is as a company. Since 2022, we invested a minimum of £40m each year in our pub estate right across the UK.”
Broad and changing needs
The focus for Heineken UK is growing value along with increasing customers “in a market that keeps slightly declining in volume”, Haarsma explained. He added this is anchored in a robust and research-driven vision for the beer and cider category and the business brings this to life through brand building and innovation by offering choice and meeting a “broad and changing range of consumer needs”.
He cites Murphy’s, Heineken 0.0 draught, Old Mout Flavourwave and Inch’s Riversider as recent examples meeting such demand but added further investments in relationships with customers and in its Star Pubs estate plus and joint activation need to take place. He continued: “And it means strictly managing our cost base and finding smart savings so we can continue to offer choice across the price spectrum, not only at the premium end with Beavertown and Birra Moretti, but also with affordable pricing on Foster’s, Murphy’s and John Smith.”
Haarsma said the biggest challenges in the sector at the moment are dealing with mounting cost pressures and offering the right experience for a changing consumer base.
He said of the Government: “We remain fundamentally overtaxed as a sector, both in excise (one of the highest in Europe), employment tax and VAT. We are not looking for charity but a level playing field.
“The cost burden of employer’s national insurance contributions, minimum wage and energy costs all keep piling up. The recent reduction in business rates by the Government was a step in the right direction, recognising the pivotal role of the pub in society. Not only in bringing communities together, but also as a gateway to youth employment and that important first work experience.”
Knack for pioneering
On business currently, Haarsma said Heineken UK is a “growth company with a knack for pioneering and a true ambition to craft legendary brands and experiences for consumers globally”.
He added the business’s role in the on-trade is to help publicans grow margin and footfall with better quality products, brands that people love, lower running costs and practical tools they can use.
“In practical terms, this means being a partner in business building, eg, with PoS support, superior draught quality through SmartDispense that drives rate of sale, staff training, social media help, menu design, sustainability tips and solutions that save money, negotiated supplier discounts and more through our Eazle platform,” he said. “Ultimately that means a perfect pint, poured in a beautifully branded glass, which the consumer is willing to pay for.
“What helps us in being a partner in business building, is that we have a pubs estate ourselves: through Star Pubs, we help steward 2,400 pubs so we understand the operator reality on both sides of the bar.”
