Why Meantime sold up to SAB Miller – the inside story

PrintMeantime Brewing’s surprise sale to SAB Miller, the second largest brewing company in the world, was prompted by a growing realisation at the Greenwich-based craft brewer that it did not have the resources and capability itself to move on up to the next stage of its growth journey, the company’s chief executive has revealed.

Nick Miller, who joined Meantime as CEO in 2011, said that he and Alastair Hook, the company’s founder, and the rest of the board were already looking at a tie-up with a big brewer as one of the strategic options that could be followed to enable the company to grow further. “We were on the cusp of making a decision that partnership was a better route than going to refinance,” he said. “I think we may have gone to a process later this year, could have gone for a float, could have gone for private equity money, could have gone to AIM, though that’s a hugely costly and time-consuming exercise, could have gone for a joint venture with a PE house, could have sold out to a major brewer, could have gone crowd-funding, could have borrowed money from the bank. But it’s a bit more than just a financial requireement. It’s ‘have you got the brewing capability, the engineering capability, the route-to-market capability, the global reach capability?’

“The financial side wasn’t that much of an issue to us, because we’ve got a very good relationship with our bank. They’ve been trying to chuck money at us for a while now. It was more about, ‘how do you sustain the growth, relative to the capabilities within the organisation?’ That was the key strategic challenge for us, and the partnership with SAB really helps with that.”

A chance meeting in March this year began the process that led to the sale, Miller revealed: “A very old friend of mine, who I had worked with, was having his 50th birthday party, and he rang me up and said, ‘I’d like to buy some pale ale to complement Peroni at my party.’ So he came over, and we sat down and had a beer and a bite to eat, and he said, ‘What are you doing with the business?’ I said, ‘Well, we’re coming to a stage where we need to look at capability and resources. We’ve got a number of options, we could do it ourselves, but we might be better off with a partnership with a brewer that gives us the capabilities that we need.’ Four or five days later his boss at SAB Miller came to me and said, ‘Look, here’s an opportunity for you, would you consider it?'”

Continue reading Why Meantime sold up to SAB Miller – the inside story

Why Welsh beer blogger Simon Martin is a superstar in Poland

Two of the more than 300 bronze dwarfs to be found on the streets of Wrocław. They commemorate the surrealist anti-Communist Orange Alternative protest movement of the 1980s, whose symbol was a dwarf, and which started in Wrocław. 'Opiłek' means 'metal chip'
Two of the more than 300 bronze dwarfs to be found on the streets of Wrocław. They commemorate the surrealist anti-Communist Orange Alternative protest movement of the 1980s, whose symbol was a dwarf, and which started in Wrocław. ‘Opiłek’ means ‘metal chip’

Wandering around the Festival of Good Beer outside the football stadium in Wrocław, southern Poland last weekend with the Welsh beer blogger Simon Martin, it was quickly clear I was in the presence of a genuine superstar. A stream of young Poles – mostly male, but including the occasional female – were rushing up to Simon, greeting him by name, shaking his hand warmly and asking if they could have their picture taken with him. During a break in the flood of fandom, Simon wryly told me that he wished he was half as famous back in the UK as he is in Poland. His YouTube video blog, Real Ale Craft Beer, has just under 10,000 subscribers and gets around a thousand views a day – respectable numbers. But while, clearly, many of those viewers come from the UK – after all, Simon is based in this country, and speaking in English – a surprising number come from Poland. The reason seems to be that in the past four years, Poles have developed a growing thirst for craft beer, and an equal thirst for information about the subject, and access to easily digested, enthusiastically delivered knowledge about new craft beers. That is what Simon’s beer-reviewing video website brings them, and they love it – and him.

Poland, you may be surprised to learn, is the third largest brewing nation in the EU, and looking to soon overtake the UK and move into second place. It produced around 40 million hectolitres in 2013, from 155 breweries, 96 litres per head per year, up 10.4% in four years, against 42 million hectolitres a year in the UK from 1,490 breweries, 66 litres per head per year, down 7.1% since 2009, and 94.3 million hectolitres a year in Germany, 107 litres per head per year, down 3.8% in four years, from 1,350 or so breweries.

From those figures you would be guessing that the Polish brewing scene is dominated by big concerns, and it is. SAB Miller has around 38% of the market through Kompania Piwowarska, including the Tyskie and Lech brands. Heineken has another 35% through Grupa Żywiec, and Carlsberg has 14% through its Polish subsidiary, which includes Okocim, leaving just 13% for the independent sector. But that independent sector is thriving: Tomasz Kopyra, the Polish beer blogger who invited me to the Wrocław festival (and who is even more of a superstar among Polish craft beer fans than Simon Martin – Tomasz has 50,000 followers on his own video beer blog and could not walk two yards across the festival grounds without being mobbed by people wanting selfies with him) told me that there were 500 new beers launched on the Polish market last year, a number that will certainly be exceeded by a considerable margin in 2015, when 100 new beers were launched in April this year alone.

Poland now has some 30 newly built craft breweries, and around 30 or 40 other craft brewer concerns contract-brewing their beers on the plant of older-established businesses. The beers they are brewing, just like the beers made by craft brewers elsewhere, largely reflect what is happening in the United States, with big, hugely hoppy IPAs and thumping stouts (though Poland has had a long tradition of very strong porters dating from the 18th and early 19th centuries, when London brewers such as Barclay Perkins exported porter and stout to the Baltic region and local brewers were forced to compete with their own versions). Continue reading Why Welsh beer blogger Simon Martin is a superstar in Poland