Category Archives: Beer industry

The Portman Group is trying to destroy Britain’s proud history of strong ales

Fabulous reproduction of a classic 19th century brew that the Portman Group wishes to see banned

It is as well the Portman Group wasn’t around when Admiral Sir Edward Belcher was fitting out his expedition to the Arctic in 1852 to try to find out what had happened to Sir John Franklin and his gallant men, lost on their voyage in search of the North West Passage seven years earlier. The Portman Group would have tried to tell Sir Edward that the Arctic Ale he was taking with him to sustain his men, brewed by Allsopp’s brewery in Burton upon Trent to around 11.25 per cent abv and shipped in “reputed quarts”, a whistle under 75cl, smashed its guidelines, being 8.4 units of alcohol in a single container, or more than twice as much as was permissible. Sir Edward would doubtless have replied in sailorly fashion, leaving everybody’s ears severely scorched.

The Portman Group’s “Code of Practice on the Naming, Packaging and Promotion of Alcoholic Drinks”, which has just been updated, is fundamentally an exercise in arse-protecting by the drinks industry, an attempt through “self-regulation” to persuade the government not to listen to the nanny-state neo-prohibitionists who would like, in lieu of total prohibition, as many restrictions on the sale of alcohol as possible, accompanied by as much tax as the market will bear. The group, the self-styled “drinks industry watchdog”, is there to assure politicians that the makers of alcohol are doing sufficient to prevent harm caused by alcohol for there to be no need for any more government legislation.

Unfortunately you can never satisfy the wowsers enough without banning alcohol altogether, and the Portman Group appears to be incapable of standing up to people like the neo-prohibitionist Institute of Alcohol Studies and pointing out that whatever harm alcohol does, it brings much pleasure to a far greater number of people than it hurts. The result is the pursuit by the group of policies that will actively reduce the legitimate pleasure possible, in particular, from the consumption of strong beers such as barley wines and imperial stouts, with their massive depths of flavours, apparently under the misapprehension that the only people who want to drink a beer over seven per cent ABV are tramps sitting on park benches, and that tramps need to be prevented from getting drunk

Duvel Barrel Aged: one of a range of strong bottled beers that faces a Portman Group red card

SIBA, the small brewers’ group, has been getting seriously upset at changes in the new guidelines over the strength of beers, with its chief executive, Mike Benner, declaring that they “threaten new, innovative speciality beer styles like Imperial stouts, porters, IPAs and British interpretations of traditional strong Belgian styles,” and “SIBA is disappointed the Portman Group is pressing ahead to introduce new guidance, which says that ‘single serve’, non-resealable containers shouldn’t contain more than four units of alcohol.”

But this isn’t new at all: the attack on strong beers has actually been Portman Group policy for years – the guidelines already specifically stated that “putting in excess of four units in a non-resealable single-serve container indirectly encouraged immoderate consumption of alcohol, contrary to rule 3.2(f).” Carlsberg was found in breach of the guidelines in 2015 over its 500ml cans of nine per cent abv Special Brew, which contained 4.5 units of alcohol, which is why it is now only available in the UK in 440ml cans at 7pc abv, which is three units.

That ober dicta was based on the Chief Medical Officers’ drinking guidelines, which, at the time, suggested no more than four units of alcohol for men per day. When the CMOs came out with new guidelines in 2016 which dropped the daily limit in favour of a weekly one, the rug was tugged sharply from under the Portman Group’s justification for ruling against Special Brew, since producers could argue that as long as a drinker wasn’t having a can every day, there was no problem. They haven’t said so, but I’d bet what worried the Portman Group after the CMOs changed their line was having to argue in court in support of a four-unit limit per can or bottle if they were challenged.

In its summary of the responses to the consultation document it put out before the new guidelines were formulated – I recommend reading it – the Portman Group declared that it has decided that in future “containing more than four units becomes a contributory rather than an absolute factor: if the producer is able to demonstrate that mitigating factors should be taken into account – for instance, premium quality of the product, whether the product is typically decanted/shared, price at which it is typically sold, accompanying promotional material, et cetera.” In other words, convince us you’re an aspirational, upmarket product, preferably designed to be shared, and not tramp juice meant for solitary sipping while surrounded by pigeons, and we’ll think about letting you off. So in fact the new guidelines represent a slight relaxation of the previous restrictions, and if Carlsberg were to print “please share responsibly” on cans of Special Brew it might, perhaps, get away with putting the size of the cans back to 500ml and the strength up to nine per cent again. (Errr – though probably not …)

A 12 per cent abv Thomas Hardy Ale in a 33cl bottle would just squeak in under Portman Group guidelines

However, the Portman Group is still declaring that “single-serve, non-resealable containers that contain upwards of six units will be difficult to justify, even with mitigating factors,” with this upper limit “in line with UK binge drinking measure which is currently set at six units of alcohol in a single session for men and women.” It says its research shows that while nearly two thirds of people think a 75cl bottle of wine is for sharing, fewer than half think the same about a 75cl bottle of beer, making that bottle “single-serve”, according to its rules, and thus a container that should not have more than six units of alcohol inside. If a 75cl bottle of beer is “likely” to be regarded as designed to be drunk by one person, this would rule out any beer over 8 per cent abv in a 75cl bottle.

Among the beers that break the new Portman Group guidelines, and therefore face a potential ban, by being stronger than eight per cent and sold in 75cl bottles, are beautiful brews from the US, such as Brooklyn Brewery Black Ops, or Local 2, Rogue’s XS Old Crustacean barley wine and Lost Abbey’s 10 Commandments; a rake of great beers from Italian craft brewers, who go for 75cl bottles in a big way – pun semi-intended – including the wonderful Xyauyù Barrel from the Italian brewer Baladin; and a fair number of beers from the Netherlands and Belgium, including Chimay Grand Reserve, De Molen Hel & Verdoemenis (and several other De Molen beers), Duvel Barrel Aged (I had some of the third iteration of that earlier this week: excellent beer, like oak floorboards smeared with blood oranges), and Dupont Avec Les Bons Voeux.

There are not so many examples of big beers in big bottles from the UK (indeed, not the least problematical aspect of this policy is that since it vastly disproportionally affects overseas producers, and the Portman Group is funded by UK producers, there is a very good argument for saying that it represents an attempt at an illegal restraint of trade – not that that may matter so much in a post-Brexit world). Sadly, unlike Belgium or the Netherlands, Britain has long lost that tradition of hefty strong stouts and barley wines in anything but nips: 33cl at best. Even a 12 per cent beer in a 33cl bottle just misses a rap on the knuckles from the Portman Group, at 3.96 units. But half a degree over that and you’ll be on the carpet and asked to explain yourself: what mitigating factors are there that we should wave you through and let your beer be sold to responsible adults perfectly able to make their own purchasing decisions without nanny hovering?

A £5 bottle of 12 per cent abv wine? No problem at all with that, sir – would you like it wrapped?

And if you’re thinking of reproducing great beers from the past such as Allsopp’s Arctic Ale, in the original style of bottle, to give a good change of some bottle-age (because smaller bottles age worse than larger onea, for a variety of reasons), fuggedaboutit: you’ll be red-carded as soon as some do-gooder spots your beer on the shelf and grasses you up to the lasses and lads at 20 Conduit Street. The result is, indeed, as Mike Benner says, that innovation by British brewers is being cramped: we had a long history in this country of super-strong beers, from the thumping pale ales that the squirearchy used to brew on their estates in the 18th century as a substitute for bandy during our many years of war with France to the huge Burton Ales we exported to Russia and (somewhat surprisingly) Australia, and, of course, all those thumping stouts that eventually earned the name “imperial”. But if the Portman Group prevails, anyone trying to reproduce those beers from the past in any bottle size worth laying down will have to prepare a lengthy brief justifying themselves for daring to exceed four units a bottle. It seems clear the “watchdog” is hoping its barking will scare away strong beers entirely.

I cannot avoid seeing a strong streak of snobbism in this. The Portman Group gives the impression that it still sees beer as an inferior drink, and beer drinkers as people who need protecting from themselves. My local off-licence will sell you two 75cl bottles of 12 per cent abv Spanish red wine for the equivalent of £5 a bottle. If someone were selling large bottles of 11.5 per cent Arctic Ale at that price, there would be howls, from the Portland Group to the Daily Mail. But it’s OK: wine drinkers are nice people like us, and don’t need to be policed.

The world’s quickest brewery tour

There ARE smaller breweries that Poppyland, but not very many: the room that the 2½-barrel brewkit sits in measures about 160 square feet. Your living room is probably larger. So the “brewery tour” consists of standing in a corner and pivoting on one heel through 180 degrees. That’s it: you have now done the Poppyland experience. Maybe we should copyright it …

Your ten-second brewery tour, conducted by Dave “chief yeast wrangler” Cornell: copper, mash tun and FV on your right, barrel-ageing department centre, “grain store” on your left … Click to embiggen

Poppyland, in West Street, Cromer, on the North Norfolk coast, named for the nickname given to the area around Cromer in the late 19th century, was founded by Martin Warren in 2011, and built a reputation for well-made and eclectic beers: Poppyland was probably the first brewery in the UK to brew with kveik, Norwegian farmhouse yeast, for example, and its smoked porter with smoked hops, smoked in the local fish smokery in Cromer has been very popular, while Roger Protz featured its East Beach IPA in his book IPA: A Legend in Our Time.

‘You don’t want to brew that!’

Martin has now decided to retire, and the brewery was bought by my brother Dave at the start of this year. It’s a small enough operation to really not need more than one man and his missus (the lovely Mandy) to run, but I have a small role as part-time adviser and consultant, probably much in the style of Harry Enfield’s Mr Only Me (“You don’t want to do it like that!”). I look forward to saying to Michael Turner some time soon: “Hello, Michael, I’m a family brewer, and you’re not …”

The brewery is in  premises that were once a small garage operation, and the sign outside on the fascia that says “ALES GAS ’N LAGER” is an anagram of “ALLEN’S GARAGE”. Next to the room where the brewing takes place is another room where beer, currently,  is stored, which has a tiny (really tiny) bar. The plan is to move most of the beer storage elsewhere and stick in a couple of armchairs and a pair of stools, so that a maximum of four people can be accommodated for beer tastings and the like. Unfotunately there are no lavatorial facilities on site, which limits the amount of hospitality that can be put on somewhat: I doubt the White Horse just up the road will be excited by people popping in from the brewery to use their loos …

The Poppyland brewery premises: currently only the ground floor, but who knows …

Brewing has been slow to restart, not least because of the bureaucracy that has to be gone through. This includes, but is not limited to

● Signing up to the alcohol wholesaler registration scheme (this may involve a 45-day wait …)
● Obtaining a certificate of recognition to be a producer and holder of beer
● Obtaining a premises licence
● Obtaining a personal licence (this involves a police check, and passing an exam …)
● Obtaining permission to discharge waste
● Obtaining a licence to be a holder of acid

At the same time my brother has been undergoing a swift education in how to brew, courtesy of, among others Norfolk Brewhouse in Hindringham some 16 miles to the west of Comer.

So: hopefully, Poppyland should be ready to roll under its new owner within days. The first brew under the new management, my brother tells me, will be called Coddiwomple, which, he says, is an old English word meaning “to travel purposefully towards an as-yet-unknown destination”. I hae ma doots about that, but the motto of Poppyland since Martin Warren started it eight years ago has always been “adventures in beer start here”, and that’s certainly true. I’ll be keeping you up to date with our adventures, as we travel towards that as-yet-unknown destination …

Picketing Fuller’s EGM is like picketing your ex-girlfriend’s house

I have a huge amount of respect for John Cryne, who had done vastly more for the cause of cask beer than I have, over four decades as an activist in the Campaign for Real Ale that includes a stint as Camra national chairman and a long period as chairman of Camra in London. I’ve known him since at least the early 1980s, when he and his wife Christine (who has also, of course, worked tirelessly to advance appreciation of cask ale, in particular as organiser of the Great British Beer Festival for many years) were pillars of the Mid Beds branch of Camra, while I was chairman of its North Herts branch. John is a highly intelligent fighter for what he believes to be right, strong and undeviating in pursuit of his aims, with fools not suffered and the faint-hearted treated with scorn. But he’s entirely wrong in his call for a picket outside the EGM that has been called by Fuller, Smith & Turner for its shareholders to vote on the take-over of the London company’s brewing operations by the Japanese giant Asahi.

We all have emotional bonds with the brands that we love – that’s exactly what brands are designed to do, to make us have a passion for the product. But turning up at an EGM with placards and banners to protest at a take-over is like turning up outside your ex-girlfriend’s house with placards and banners to protest at her dumping you. It also fundamentally misunderstands the real relationship between consumers, brands and the companies that produce them. It may feel like love to you. But to the brand owner, it’s entirely a monetary transaction – and it couldn’t, shouldn’t be anything else.

In his call for a picket of the EGM, John said the sale of Fuller’s brewing side was “a betrayal by the family shareholders who we thought were committed to brewing in London for the next two hundred years.” This really is the language of Jilted John:

I’ve been going out with a girl
Her name is Fuller’s
But last night she said to me
When we were watching telly
(This is what she said)
She said listen John, I love you
But there’s this bloke I fancy
I don’t want to two-time you
So it’s the end for you and me.

Fuller’s is not your girlfriend, shouting “Asahi’s a moron!” will get you nowhere,and the decision of the family shareholders to sell is not them betraying you: indeed, the prime and pretty much sole responsibility Fuller’s shareholders have to have is to themselves – why should it not be, they’re risking their own money in the company – and the betrayal would be turning down the £250 million that Asahi offered. If anyone felt Fuller’s owed it to its drinkers to keep independent, they don’t understand how business works. As I already pointed out, even after costs and et ceteras, that represents all the earnings Fuller’s might expect from the beer division until 2038. In the meantime it still has the pubs and hotels side of the business, which is making 87 per cent of the profits anyway.

I have great sympathy with everyone whose reaction to the news of the sale was sadness at the thought of the loss of a historic link to which they had a big emotional attachment: I have a big emotional attachment to Fuller’s myself, although I can’t agree, again, with John Cryne in declaring that “this is not an action we expected from a brewery we have respected and supported since Camra was founded.” I’m not just talking about the enormous amount of slagging Fulle’s gets from Camra members on, eg, the Camra Facebook page (“brown twiggy pish”). To my father’s generation – and he grew up in West London – Fuller’s in the 1950s was a brewery to avoid, nicknamed “Fuller shit and turds”. It took a long time for Fuller’s to reach Camra cult status: in 1974, just a few years after the Fuller’s board had scrapped a proposal to close the Griffin brewery and move production of all the beers to a new greenfield fizz-factory near Heathrow, the Good Beer Guide found “only a handful” of Fuller’s pubs selling cask beer. By 1975 that was just ten out of 116 tied houses. The following year the number of pubs with handpumps had risen to 16, it was 38 out of 112 in 1979 and 66 out of 122 in 1981 – still barely more than half of all the tied houses with “real ale” in them.

The numbers were rising steadily, but even in 1984 a third of Fuller’s pubs did not sell cask beer, and four years later one in ten Fuller’s pubs were still keg-only. Only by 1990 had that dropped to “a handful”, five out of 149, at which point Fuller’s had picked up a Usain Bolt-style haul of medals at the Great British Beer Festival. The brewhouse was redeveloped in the early 1990s, increasing capacity by 50 per cent, while the number of tied houses was climbing too, up past 200 by 1994. Fuller’s head brewer, Reg Drury, and his young assistant, John Keeling, were starting to experiment with new brews: 1845, based on a 150-year-old recipe, for the 150th anniversary of the Smiths and Turners joining the Fullers in the business, and Vintage Ale, a strong bottle-conditioned beer designed to be laid down and matured for years, first produced in 1997. Vintage Ale, in particular, has continued to amaze and fascinate beer commentators: the vertical tastings of different brewings of Vintage Ale in the Hock Cellar at the Griffin Brewery have been some of the finest evenings of beer I have ever been involved in.

The young John Keeling at work in the Fuller’s brewhouse

Still, if as Jim Armitage of the Evening Standard said, “We must mourn the passing of the last great London-owned, brewed and bred beer,” it’s a process that has been happening for 120 years, since Watney’s merged with their porter-brewing rivals Reid’s of Clerkenwell and Combe’s of Covent Garden in 1898. There were 90 breweries in London in 1904, and just 10 in 2007. Tick off the great London breweries we have lost since the 1974 Good Beer Guide: Charrington’s of Mile End in 1975, Whitbread in Chiswell Street in 1976, Mann’s of Whitechapel in 1979, Courage by Tower Bridge in 1982, Truman’s in Brick Lane in 1989, Young’s in Wandsworth in 2006. Indeed, tick off the 80 or so family-owned breweries listed in the 1974 GBG: 45 have now closed, more than half, and another seven are still open but under different ownership. That’s exactly one closure a year. Of those closures, I can tell you at least a dozen that I miss deeply: Rayment’s in Hertfordshire, Hartley’s in the Lake District, Higson’s of Liverpool, Paine’s in St Neots, Ruddle’s … all gorgeous beers. And that doesn’t count the many breweries owned at that time by the Big Six that were still producing great brews: the former Fremlin’s brewery in Kent, Wethered’s in Marlow and the ex-Starkey Knight and Ford brewery in Devon, for example, all, under the Whitbread umbrella, making beers that I loved when they were around and mourned when they disappeared.

So forgive me, then, if I’m a bit mourned out, having to cope with the disappearance of dozens of beers over the decades that were all certainly up to the high standards that Fuller’s has set. That’s life. At least Fuller’s is still brewing – and there are 2,000 other breweries in Britain now, against the fewer than 200 we had in 1974. That, at least, should cheer us all up.

A short history of Asahi, in which beer gets called ‘bitter horse-piss wine’

In view of recent events, I thought people might be interested in a short history of Asahi Breweries …

Beer was introduced into Japan by the Dutch, who were the only Europeans allowed to trade with the country after the expulsion of the Portuguese early in the 17th century, and who would take biiru with them when they made their compulsory once-a-year trip from their base in Nagasaki to the Emperor’s palace in Edo (now Tokyo). However, it was not until Commodore Matthew Perry of the US Navy arrived in Japan in the 1850s to try to push the shogunate into opening diplomatic relationships with the United States that the locals made any proper analysis of this new drink, after the American delegation on Perry’s second trip to Japan in 1854 presented officials with gifts including three casks of beer. Japanese opinion was divided: one called it “magic water”, while another described the beer as “bitter horse-piss wine”.

The treaties signed between Japan and the US saw Yokohama opened from 1858 as a place for European traders to settle, and in 1863 military forces from Britain and France arrived in Yokohama to protect the increasing numbers of their nationals based in the city. Two years later, according to an article published in the China Mail newspaper in Hong Kong on October 19 1878, two foreigners, one an Englishman called Campbell and the other an American called Langthorne, began to brew beer in Yokohama, at the first commercial brewery in Japan. Campbell and Langthorne are deeply obscure and nothing more seems to be known of them, not even their first names. Their business did not last long, according to the China Mail, at least in part because of increasing imports of beer from Europe and America: the newspaper wrote that “either because in those days the foreign denizens of Yokohama were so rich or so extravagant as to despise any but the produce of the famed distant vats of Burton, Edinburgh and Dublin, or because the projectors had not sufficient knowledge of their art to make their liquor palatable, or capital enough to work and wait until it had created a reputation and a market, they soon abandoned their enterprise; and the buildings they erected were subsequently pulled down.”

In 1868, however, the wonderfully named Marinus Johannes Benjamin Noordhoek Hegt, born in the Netherlands in 1821, a sea captain and merchant who came to Yokohama in 1860, opened a small brewery at No 46 Bluff, part of Yokohama’s designated European district, where there was a deep well on the site. Hegt hired as his brewer Emil Wiegand, a brewer from Germany who had emigrated from Hessen at the end of 1853, aged 19, via Bremen, arriving in New York on January 6, 1854. Wiegand was apparently naturalised in Philadelphia in 1856, and looks to have spent 11 years in the eastern US, presumably working in local German-run breweries, before leaving New York on December 1 1867 to travel to California via Nicaragua. He spent barely a year in San Francisco before moving to Japan, arriving there, according to a deposition he made later in a tribunal at the US consulate general, in 1869 after signing a contract to manage the “Japan Yokohama Brewery”.

Hegt’s brewery inspired a man called William Copeland, born Johan Bartinius – sic– Thoresen in Tromøy, in southern Norway, in May 1834, to build a brewery of his own on the site first used by Campbell and Langthorne, No 123 Bluff, which had as its chief attraction a source of “singularly pure” water, and which became known as the Spring Valley Brewery. Copeland, who had arrived in Japan in 1864 (and whose middle name changed to Martinius at some point) made his first brew in January 1870, shortly after Hegt had moved to larger premises at Bluff lot 68 in 1869. The two rival breweries ran in competition with each other until June 1876, when the owners agreed to a merger, and Copeland and Wiegand brewed at the Spring Valley Brewery site, using Bluff lot 68 as a maltings, until the maltings were destroyed by fire in 1877.

The Spring Valley Brewery made lager during the summer, and “‘English ale’, ‘Bock’ and ‘Bavarian’ beer, demanded by the better sort of customer” during the winter. The beer was exported to Tokyo, Nagasaki and other Japanese towns, and as far away as Shanghai and Hong Kong. Copeland and Wiegand brewed together as co-partners until the end of 1879, when Wiegand filed a bill with the US consular court in Yokohama for a dissolution of the partnership, alleging “fraudulent acts and other irregularities” by Copeland. The American consul general, who had the legal right to hear cases in Japan involving American citizens, found Copeland not guilty, but it was agreed that the partnership should be dissolved anyway and the firm wound up, with its assets sold. The brewery was estimated to be worth some £32,500, and Wiegand, who had bought much less to the partnership than Copeland, was due $6,250 of that. Unfortunately the only bidder for the brewery was Copeland, who bought the business back in February 1880 for just $12,000, which meant that not only did Wiegand not get anything, he now owed Copeland several thousand dollars. Wiegand eventually died in San Francisco in 1887, aged 47.

In 1880, meanwhile, Copeland was involved in another lawsuit between himself and his head clerk, which was again settled by the US consul in favour of Copeland. However, the suit bankrupted the Spring Valley business, and though Copeland continued brewing by himself until 1882, the business went under in an economic recession. Two years later, on July 1884, the Spring Valley brewery was sold by the US Marshall by order of the US Consular Court for $11,500. The London and China Telegraph of September 22 1884 wrote that “this property is estimated to have cost the late proprietor over $60,000.” Who bought it remains unclear, but on April 27 1885 the London and China Telegraph reported that two fires had recently broken out at the premises of the Spring Valley Brewery on the Bluff, Yokohama, and in the first, which began at 8pm on March 13, the block was destroyed which housed in its lower portion the “extensive” brewery plant. The plant and buildings were insured for $5,000 in the Lancashire and the City of London Insurance Companies, but “the brewery plant could not be replaced for at least three times that amount.”

Two months after the fire, in May 1885, the first meeting was held of resident foreigners in Yokohama that would eventually lead to the foundation of the Japan Brewery Company Ltd, set up with mixed Japanese and foreign investment. This company quickly acquired the Spring Valley brewery site to build its own brewery, taking advantage of the site’s water supply. The new concern eventually launched its “Kirin beer” in 1888, and changed its name to Kirin in 1906.

By now the Japanese brewing industry had become thoroughly “Nipponised”, helped by men such as Nakagawa Seibei. Nakagawa (in Japan, surnames are given first) travelled at his own expense from his homeland to Germany in 1872, hoping to learn a foreign skill he could use back in Japan. He was advised to study brewing, and spent more than two years, from 1873 to 1875, at a brewery in Fürstenwald owned by the Berlin brewery Tivoli.

It is difficult to imagine what it must have been like for Nakagawa, who was only 24 when he arrived in Germany, where everything – the language, the architecture, the food and drink, the clothing, the entire way of life – was utterly alien to all he had known previously. On his return to Japan with a certificate of study from the Tivoli brewery, Nakagawa was hired by the Japanese government to build a brewery in the newly founded city of Sapporo, on the northern island of Hokkaido, which was being rapidly developed in response to a possible invasion threat from Russia. The brewery made its first German-style lager in 1876, and was sold by the government to private investors ten years later.

Between 1869 and 1872 there were more than a hundred brewery start-ups in Japan, most being small and deeply obscure, with very little now known about them. All, or at least all those about whom sufficient details are known, concentrated on producing German-style beers, mostly because Japanese beer drinkers needed the reassurance that domestic brewers were using the same techniques and ingredients as foreign brewers in order to buy Japanese-brewed rather than imported beer. Among the start-ups was one begun by Torii Komakichi, a well-known sake brewer from Sakai, south of Osaka, a city in the south-central region of Japan’s main island, Honshu. In 1888 Torii’s Osaka Beer Brewing Company sent Ikuta Hiizu to Germany to study brewing at the brewery school in Weihenstephan, Bavaria. Ikuta returned to Japan in 1889, where he was appointed manager and technical director of a new brewery built at Suita Mura, on the edge of Osaka, which was completed in 1891. The plans for the brewery were drawn up in Germany, although it was built by an Osaka constructor, and all the brewing machinery was from Germany, though most of the malt and hops was imported, initially, from the US west coast.

The Asahi brewery in Osaka circa 1902: double-click to embiggen

In 1892 the company launched a beer under the name Asahi, meaning “morning sun”. The Osaka brewery showed its beer at the Chicago World’s Fair in 1893, where it was noted that the company was using Japan-grown barley of the Golden Melon variety, which stood up to the hot and humid climate of Honshu, and which had been introduced into the country from the United States in 1885. The same year Osaka was reorganised as Osaka Breweries Ltd. An “Asahi Beer Hall” was opened in nearby Kyoto in 1896 to promote the company’s beer to thirsty tourist. By 1901 it was the second biggest brewery in Japan, at 53,500 hectolitres, well ahead of the Japan Brewery Company/Kirin at 28,500hl and Sapporo at 24,517hl, but behind the Nippon Beer Co of Tokyo, whose main brand was Yebisu, on 59,450hl.

An advertisement for three beer brands then owned by the newly formed Dai Nippon Beer Company, Yebisu, Sapporo and Asahi, from the China Mail, Hong Kong in 1907

The same year the Japanese government introduced a “brutal” new beer tax, which hammered the smaller brewers. The “big four” battled on, but in 1906, in an attempt to reduce competition, which was damaging profits, Sapporo, Osaka Beer Co and Nippon Beer agreed to merge under the name Dai Nippon (“Greater Japan”) Beer Company. From then until after the Second World War, the Japanese beer industry was almost totally dominated by Dai Nippon Beer and Kirin, both producing – until 1941, at least – heavily German-influenced beers. However, the pair were unable to stop retail outlets conducting a vicious price war. This only ended in 1933, when the two giants of Japanese brewing signed an agreement to form the “Co-operative Beer Sales Company Inc”, a deal brokered by the Ministry of Commerce and Industry, which gave Dai Nippon 70 per cent of joint sales and Kirin 30 per cent. In the total market, Dai Nippon had a 56 per cent share and Kirin 28 per cent, giving the Co-operative Beer Sales Company 84 per cent of the domestic Japanese beer market. Through the 1930s Asahi and Kirin fought each other for the title of Japan’s best-selling beer brand, with Asahi on an average of 30 per cent of the market and Kirin on 27.5 per cent. Meanwhile Dai Nippon Beer’s Asahi division was opening new breweries, in Hakata, Fukuoka, on Japan’s southernmost large island, Kyushu, in 1921 and Nishinomiya, a few miles from Osaka, in 1927.

When Japan went to war with China in 1937, a conflict which eventually widened into bitter conflict with the United States and the UK in 1941, the beer industry in Japan became more and more tightly controlled by the government, not least because through taxation it generated essential funds for the war effort. In 1939, sake was still the dominant alcoholic beverage in Japan, selling 4.5 times as much as beer, which was largely an expensive middle and upper-class luxury. But as rice production was diverted into foodstuffs, sake production was halted by the end of 1940. Beer took its place, since barley was only a grade-B foodstuff. At the same time, with supplies of hops no longer available for import from Germany, Japan’s brewer began to make their beers less bitter. Small brewers disappeared completely, leaving only Dai Nippon and Kirin by 1943.

After Japan’s defeat in 1945, in the seven-year occupation that followed, much effort was made by the occupiers to break up Japan’s economic conglomerates, the zaibatsu. Dai Nippon did not wait to be broken up, instead putting forward its own arrangement in which, in 1949, it split into two, one side taking the Asahi brand, the other, initially called Nippon Breweries, the Sapporo and Yebatsu brands. Asahi had 36 per cent of the market, Nippon Breweries 38.7 per cent and Kirin 25.3 per cent. The three operated an informal cartel that eliminated price competition, while Japan’s ministry of finance kept import duties on foreign beers high, with an (under world trade rules, illegal) agreement that the three brewers would, as a quid pro quo, buy expensive Japanese-grown barley rather than much cheaper foreign barley.

Until the middle of 1949, the occupying forces had barred Japanese from going to restaurants, bars or beer halls. The reopening of the “on-trade” saw beer sales boom: one bar in Osaka was selling 120 wooden crates of 24 bottles each night, an entire truckload in a day. In 1954 Asahi began to pull ahead of its rivals, capturing 37 per cent of the market, after leading the way in marketing efforts that included sponsoring radio and television programmes, films (including Gone With the Wind when it returned to Japanese cinemas in 1952) and boxing matches. In 1958, Asahi introduced Japan’s first canned beer. Meanwhile the Japanese alcohol market was changing, with sake falling from 71 per cent of all alcohol beverages sold before the Second World War, against beer’s 16 per cent share, to 29 per cent in 1959, against beer’s 44 per cent.

As well as canned beer (which today has more than 60 per cent of the Japanese market), Asahi also pioneered the first outdoor fermentation and lagering tank, the “Asahi Tank”, launched in 1965 and soon licensed to a German brewery construction firm, Ziemann.

By now Asahi had seen its share of sales drift down, leaving it with just 27.9 per cent of the Japanese market in 1961, barely ahead of Sapporo on 27.8 per cent, while Kirin had 41.7 per cent. Kirin’s dominance enabled it to set prices that hampered its rivals’ attempts to match them and still be profitable, and by the mid-1980s its share of the market was more than 60 per cent, with Sapporo on 20 per cent and Asahi on 11 per cent, while Suntory, a distiller that had entered the beer market in 1963, had seven per cent.

At the same time, the beer produced by the three firms continued to be the comparatively light, lightly hopped drink Japan’s brewers had been forced to change to during the Second World War, a style of beer which both proved popular with the increasing numbers of women drinkers, and beer rapidly left sake sales far behind. While the trend in the 1950s and 1960s towards less-bitter beers could be also seen in, for example, the United States, from the 1970s, Japan’s brewing industry began to exhibit some peculiarly Japanese developments. One was the introduction of “beer-like” brews, or happoshu (literally “sparkling spirit”), containing little or no barley, a reaction to both the high price of barley itself and the high taxes on barley brews in Japan. Another was the rise of “draught-style” bottled and canned beers from the late 1970s, with Asahi launching its own Draft Beer brand in 1986.

This did not stop Asahi striking deals with brewers elsewhere in Asia: in 1971 it signed an agreement with United Breweries of New Guinea that saw a brewery built in Port Moresby to make Asahi beers, and in 1986 another contract was signed with San Miguel to start brewing Asahi brands in Indonesia. In 1990 Asahi bought just under 20 per cent of the Australian beer giant Foster’s Group (sold in 1997 back to Foster’s).

A three-litre can of Super Dry, the beer that saved Ahasi

What saved the company, however, was the introduction of “dry beer” in 1987 to try to compete with Kirin, which by then had 63 per cent of the domestic market, with Asahi far behind in third place on just 10 per cent. In 1982 one of Japan’s leading banks, Sumitomo Group, which held 12 per cent of Asahi’s shares, sent in a bank executive specialising in corporate turn-arounds, Murai Tsutomu. Murai made the brewery conduct market surveys which came back with the message that 98 per cent of beer drinkers surveyed wanted Asahi to change the taste of its beer. Drinkers said they wanted a beer that was rich but left no aftertaste. Asahi’s brewers told Murai that was not possible. Murai insisted that it had to be done, and the result was Asahi Super Dry, stronger, at 5 per cent alcohol, than most Japanese mainstream beers, generally 4.5 per cent, but with less sugar, sharper and with no aftertaste. It became instantly popular, particularly among younger drinkers. The launch doubled Asahi’s share of the domestic beer market in a year, and sent it to 37 per cent by 2001. This was the only Japanese brewing initiative to have any impact overseas, with US and European brewers also introducing “dry” beers: by 1990 there were more than 20 “dry” beers on sale in the US market.

Japan’s brewers had been protected for many years from new entrants into the market by a law that required a minimum annual output for anyone wanting a brewery licence of 20,000 hectolitres. In 1994 the country’s Ministry of Finance cut that requirement to just 600 hectolitres, making it viable at last for new microbreweries to start up. The first opened in Japan in 1995, and by 1999 the country had 242 new small breweries. In an attempt to head off this new competition, in 2001 Asahi opened its own “microbrewery” operation, Sumidagawa Brewing, a brewpub in Tokyo.

Super Dry was launched Canada in 1994 and the United States in 1995. It went into in 12 European countries in 1997, and in 2000 Asahi struck a deal with Bass in the UK for a Czech subsidiary of Bass to brew Super Dry under licence. But with the UK becoming the biggest market for the beer in Europe, in 2005 production was switched to Shepherd Neame in Kent. Meanwhile at home beer sales were falling, with the “big four” of Asahi, Kirin, Sapporo and Suntory suffering a volume decline between them of 23 per cent between 1994 and 2000. At the same time, sales of the cheaper happoshu were climbing, hitting 30 per cent of the Japanese beer market in 2001, the year Asahi finally launched a happoshu of its own. Two years later sales of happoshu for home consumption passed those of “real” beer.

Asahi had regained the number one spot among Japan’s brewers in 1998, and its share of the “real” beer market rose past 50 per cent by the end of 2008, though its share of the total “beer-like” market was only 37.8 per cent, barely ahead of Kirin on 37.2 per cent. Domestic beer sales were badly hit by the 2011 earthquake and tsunami, and took several years to recover, but Asahi was seeing big rises in sales to China, where increasing affluence was powering what was becoming the biggest market for beer in the world. It began acquiring shares in five Chinese breweries in 1994 and 1995, and entered into an agreement with the then largest brewer in China, Tsingtao Brewery, to build a brewery in Shenzen, near Hong Kong, which opened in 1999. In 2009 it bought a 19.9 per cent stake in Tsingtao Brewery, reviving a link from before the Second World War, when Dai Nippon Beer Company owned Tsingtao.

An Australian craft beer brewery, Cricketers Arms, in Melbourne, was acquired in 2013, followed by a second in 2015, Mountain Goat Beer in Richmond, Victoria. The next year, as part of the fall-out from AB InBev’s acquisition of SAB Miller, Asahi bought SAB Miller’s beer business in Western Europe, including Peroni in Italy, Grolsch in the Netherlands, the St Stephanus “abbey” brand from Belgium and, in the UK, Meantime Brewing Company, for a total of $2.9 billion. Meantime, based in Greenwich and founded in 2000, had only been bought by SAB Miller two years earlier, for £125 million. Early in 2017 Asahi swallowed SAB Miller’s Eastern European business as well, including Pilsner Urquell in the Czech Republic; Dreher Breweries in Hungary; Ursus Breweries, the biggest beer brewer in Romania; Tychy and Lech in Poland; and Šariš in Slovakia, for another $7.8 billion. The deal made Asahi the third biggest brewing company in Europe, with 9 per cent of the market, after Heineken and Carlsberg. The same year it sold off its interest in Tsingtao for $844 million, as part of a general pull-out from the Chinese market to concentrate on Europe.

Earlier this week it was announced that Asahi had acquired the brewing assets of the London-based craft ale specialist, family brewer and pub and hotel owner Fuller, Smith & Turner, for £250 million. The deal includes the brewery in Chiswick, but not, it is speculated, the entire brewery site. It gives Asahi ten breweries in Europe, against the eight it runs in Japan, including the Hokkaido brewery in Sapporo, opened in 1970; Ibaraki, on the coast north-east of Tokyo, opened in 1991; and on Shikoku, the smallest of Japan’s four main islands, opened in 1998. It is currently the biggest brewer in Japan, fifth biggest in Asia and seventh biggest in the world.

Asahi makes massive vote of confidence in future of cask ale with £250m purchase of Fullers’ beer business

The Japanese beer giant Asahi has made a massive vote of confidence in the future of the real ale sector in the UK with its £250m purchase of Fullers’ beer business.

And if that’s not the angle you took away from the story, you’re not thinking this through properly.

The beer business earned Fullers £10.6 million before interest, tax, depreciation and amortisation in the 12 months to March last year. The net cash going into Fullers’ pockets after the deal with Asahi is completed is expected to be around £205 million. So the purchase price means, effectively, Fullers receives all the earnings it might have got from the beer business (assuming nothing had changed) for the next 19 years, until 2038, in one lovely big cheque, right here and now.

At the same time, Asahi has to cover its £250m payment for the business out of the profits it expects to make from it, and preferably in not too long a time: its current return on invested capital (ROIC) is apparently 7.34 per cent, which would pay off the purchase price for the Fullers beer business in just under 14 years. In other words it expects that business to be at least as profitable as it is now for at least the next decade, in order to cover the cost of buying it, given the returns it normally gets.

Nobody bungs a quarter billion big ones at a business unless they think that business has a future, and they’re going to get a decent return on their money. Fans of cask ale, and Fuller’s beers, should be cheering until the pint glasses rattle on the shelves at the confidence Asahi is showing in the sector.

Inevitably, of course, the usual army of whingers has come out and shown the usual failure to understand how business works, and what the strategies of the two companies involved in the deal are. Some seem to think Fullers should have turned the Japanese offer down: this would, of course, have been both stupid and illegal. It’s the job of a company’s board to maximise the returns for that company’s shareholders: if they are offered a risk-free way to bring in today all the earnings a part of the company might see for two decades, and they push it away, they would rightly be sued for not acting in shareholders’ best interests. In Fullers’ case, the division it is selling represents only 13 per cent of operating profits. It intends giving between £55 million and £69 million of the cash from Asahi to its shareholders straight away, and putting a bung into the company pension scheme as well, but that still leaves a substantial sum – over £120 million, certainly – to spend on new pubs and hotels, which bring in much more money than brewing does. The City is certainly clear on what a great move Fullers has made: the shares closed up 15.5 per cent, and Douglas Jack, a vastly experience City analyst, declared: “This transformative deal provides the foundation for many years of strong growth. We are moving our recommendation from ‘Add’ to ‘Buy’.”

Asahi clearly thinks there is profit to be had in the business of supplying beer to British pubs,. With Fullers’ emphasis, still, on cask beer brands it obviously believes buying the rights to brew cask beer is worth a substantial wodge of corporate cash and there is a hearty future ahead. Meanwhile, on the “oh no the accountants will ruin London Pride” front,  as part of the fall-out from the AB Inbev-SAB Miller merger, Asahi ended up with Pilsner Urquell and Meantime in London, among other Western beer brands. I’ve heard no moans from either of those two concerns about how the Japanese are treating them. If you pay a lot of money buying a product that sells on its premium image, you don’t mess about with that image.

The keyboard warriors who wave their anti-corporate credentials, declaring that now Fullers’ beers are going to be brewed by a multinational conglomerate they won’t be drinking them, are particularly nauseous: they’re typing their rants on a computer, or a phone, made by a multinational, using electricity from an energy supplier that is probably also a multinational. A fair few years back I was in the wood-panelled boardroom at the Griffin brewery, all heavy oak tables and oil paintings of bewhiskered Fullers, Smiths and Turners from Victorian times on the walls, and I asked Michael Turner, then the company’s managing director, later its chairman, if he didn’t occasionally feel oppressed with all these ancestors staring down at him. “Frankly,” he said, in his forceful Old Etonian accent, “I don’t give a fuck.” I would be confident that, whatever the whingers are saying, Fuller’s is currently not giving a fuck all the way to the bank.

Finally, let’s offer many congratulations to Twickenham Fine Ales, my local craft beer brewery, which finds itself, just 15 years after it started, now London’s oldest independent brewer. That won’t be something founder Steve Brown ever expected to happen.

Twickenham Fine Ales, now at 15 the oldest independent brewery in London

Why, nearly 50 years after the birth of Camra, can I still not be guaranteed a decent pint of cask beer in most pubs?

Why is finding a properly kept pint of cask ale such an appalling lottery in Britain’s pubs, despite the existence since 1971 of a consumer organisation dedicated to beer quality – before most pub staff were born – and the existence of a trade organisation dedicated to raising the standards of draught beer, Cask Marque, since 1998, two decades ago?

The answer is actually ridiculously simple. Almost nine out of ten pints of cask beer sold in Britain are sold after the cask they came from has been open for at least three days. According to CGA, almost 90 per cent of cask ale brands sold at below the rate of 18 pints per tap per day required to maintain quality. The typical cask of beer is still on sale seven or more days after it has been opened. This is exactly the same as making a sandwich on Monday, and still having it on sale a week later. The bread will be stale, the filling long past its best. Anybody buying that week-old sandwich is unlikely, after trying it, to buy a sandwich from you again. Cask beer is a perishable product: it loses its best qualities very quickly, certainly within a few days. Most pubs ignore this, and as a result most cask beer is sold a long way off from peak condition.

Paradoxically, there is also a big problem of pubs selling beer too young. Almost three in five publicans confess to putting beer on sale before the recommended three days of cellar conditioning. So there is a fair chance that just as your pint is finally coming into condition, it’s already past its best because the cask has been open too long.

Adding to the problem of poor quality caused by age, the evidence clearly shows most pubs keep their cask beer too warm. This is obviously more of a problem in summer, but cellar air conditioning has been available for many decades: that picture at the top shows a pub cellar from 1947, with aircon units. However, in July this year, Cask Marque found that almost seven out of ten pints of cask ale were served warmer than the recommended 11ºC to 13ºC. Two per cent were served at an alarming 20ºC – almost 70ºF. How is this possible?

Hilariously – or not – more than 90 per cent of pub landlords insist that they are aware of the advise on how to keep cask beer well, advice which strongly recommends arranging turnover so that a cask is emptied within three days, and they claim either that they do their best to follow that advice or don’t actually need it because they are expert cellarmen. And two thirds of landlords insist their cask ales never stay on sale for longer than three days. Unfortunately, the evidence shows clearly that this is totally untrue. Vianet, a company that monitors what happens in pub cellars, found that the majority of pubs sell less than a cask of beer per tap per week. Let’s be generous and say that half of each cask is sold within the recommended three-day period after the first pint is poured. That means half of all pints from the majority of pubs are going to be four days older or more. Would you reckon to buy a sandwich from a place where half the sarnies on offer were between four days and a week or more old?

One underlying reason for all these problems is that too many publicans are either indifferent to or don’t like cask beer. To quote Pete Brown, in the latest Cask Report, out yesterday, “Among publicans who love drinking cask themselves, every single quality measure is significantly better.” Perhaps we should be saying: “If you don’t actually adore cask beer, please don’t sell it.”

In the past five years, cask ale sales have dropped by 20 per cent, while the overall beer market has fallen by just over nine per cent. At that rate of decline, cask ale will effectively have vanished in a few decades. Meanwhile “craft” beer, defined for the purposes of this argument as non-mainstream keg beers made by small brewers, has leapt from nowhere ten years ago to six per cent of the on-trade beer market in 2018. I drink “craft” beer in a pub occasionally, but I do not believe I will ever have a pint of “craft” as wonderful as the very best cask ale can be. If cask ale disappears, then to misquote Hilaire Belloc, drown your empty selves, for you will have lost the best of England

The Cask Report has a number of tips to try to stop this apocalyptic scenario. Here are mine:

1) Every pub or bar that sells cask ale must have a cask ale champion whose specific job it is to ensure that every pint is perfect. If this is not the publican, it should be someone else senior.

2) Every pub company, too, must have someone in the organisation to champion cask beer and ensure every outlet is selling the best cask ale it can.

3) Pubs should be taught that a big range of different cask beers on sale at the same time is not automatically a bonus, but a likely contributor to quality problems.

4) Before any pub gets Cask Marque accreditation, it should be able to show a record of how long every cask beer has been on sale, and also a record of every customer complaint about the quality of a pint, and what action was taken about that complaint. Pub companies should also regard this as best practice.

5) If “craft” drinkers are avoiding drinking cask because they perceive it to be all “boring brown bitter”, pubs should urge “craft” beer drinkers to try those modern cask beers closest in flavour to the most popular sorts of craft ale – American pale ales and the like. Then use those beers as a gateway to the joys of traditional cask ales. Staff need to know enough to be able to explain that, actually, the earliest American Pale Ales were directly inspired by Timothy Taylor’s Landlord.

6) Camra members over 65 (and yes, I fall in that segment) should STFU about how awful Doom Bar is, and should be taken behind a wall and shot in the head if they utter the phrase “Remember Watney’s Red Barrel!” Nobody except you DOES remember Watney’s Red Barrel, grand-dad, and it’s the image you and people like you bring to cask ale – slippered, cardiganned, smelly – that is part of the reason why under-30s would rather drink “craft”.

There is no such thing as the ‘craft beer community’

Of all the multiple nonsenses written about the acquisition of a minority stake in Beavertown Brewery by Heineken International, perhaps the stupidest came from someone called Kirk Hilton on Twitter, who declared this week that Logan Plant and his crew had “chosen to turn their back on the craft beer community” and “should know about the effect” its “sell out” had had on “the community as a whole”.

Let’s be clear. There is no “craft beer community”, any more than there is a “Stella Artois community” or a “Nescafe community” or a “sourdough bread community”. I drink craft beer, whatever “craft beer” is, but I certainly don’t regard myself as part of a “community” as represented by Kirk and his pals on the Facebook UK Craft Beer Forum, where, as part of the general tedious posturing, cask beer is regularly dismissed as “twiggy” and “boring”. That’s not a “community”, it’s a group of snobby elitists with their heads so far up their bottoms they can probably see their own tonsils. The laugh is that the hop-laden brews they love (and indeed I love many of them too) sprang from beers developed originally by people like Fritz Maytag at Anchor Steam and Ken Grossman at Sierra Nevada that were themselves inspired by the “twiggy” bitter beers of England: Anchor’s Liberty Ale, the first highly hopped Cascade-driven West Coast pale ale, sprang directly from a visit Fritz Maytag made to Keighley in Yorkshire around 1974, where he sampled Timothy Taylor Landlord.

What is particularly crass about the reaction from Hilton and the rest of the UKCBF crew is their demand that Beavertown must stay small, or else it is guilty of “betraying” the “craft beer community”. What they ought to be doing, of course, is cheering until the rafters shake at the success of one of the best four or five start-ups in the UK beer business, which will now be able to bring its beers to even more drinkers.

Logan Plant, like all successful businessmen, wants to see his business grow even larger: only a fool, frankly, sits on something that could potentially become massive and declines to allow it to grow as big as possible. (The reason why that’s foolish, in case you can’t work it out, is because what will happen is that someone else with fewer scruples about making a fortune will come along and replicate what you’ve done, overtake you, steal your market because they’ve grown big enough to have the marketing clout to do so, and put you out of business.)

However, like others – Meantime, Camden Town, even BrewDog – Plant discovered that there are few or no ways to bring in the money required to step up to the next level without shaking hands with Big Capital. The £40m Heineken is pumping into Beavertown will enable it to build (if the  Caterer’s figures are correct) a 275,000-barrel (450,000hl) brewery on three acres of land, tn tims the size of their current plant, creating 150 jobs. For a company founded only in 2012, that’s fantastic. But as Plant told the Caterer, when he first looked at how to get the cash for that project, “Crowdfunding simply couldn’t achieve the funds we need, so that option came off the table quickly. We then started looking at private equity, which initially looked solid. However, the more we looked at the offers, it became clear that it was only an option for the short to medium term.

Logan Plant: ‘sensible and stable’

“That was when we concluded that the most sensible and stable option was the one that sat furthest away from our minds at the start of the process, one that at first glance felt alien but on closer and more detailed inspection offered us boundless opportunities to grow and develop in the right, safe business manner: finding another like-minded brewery as a partner.”

The finance people Plant used in the negotiations with Heineken, incidentally, are Arlington Capital Advisors of Georgia in the United States, who were the same gang that advised BrewDog last year when the Aberdeenshire lads sold a £213m stake in themselves to TSG Consumer Partners, the $5bn San Francisco-based private equity firm that owns Pabst, the American “industrial” lager brand. You might think that as a result James Watt is being a tad hypocritical in declaring that BrewDog will no longer stock Beavertown beers after Heineken bought a minority stake in the East London firm – I couldn’t possibly comment.

What too few people in the craft bubble fail to grasp is that the overwhelming bulk of beer sold in the UK – nine pints in 10 – is mass-produced, and if we want that to change we have to cheer on those successful craft beer brewers who are attracting investment to grow larger, and expand the craft beer market. Ah, but as Kirk Hilton tweeted to Beavertown: “You’re not craft beer any more.” Silly Kirk thinks he can spot the change in the taste of a pint of beer the moment someone else buys a stake in the brewer that made it. Fortunately the UK Craft Beer Forum represents perhaps 0.08 per cent of all British beer drinkers, and Beavertown, I am sure, will succeed and thrive without its approval.

A look round Camden Town’s new Enfield brewery

Whatever you think of Camden Town Brewery’s beer – and enough people like it to swallow more than 300,000 pints of Hells lager, Gentleman’s Wit and the rest every week – the company’s expansion in under seven years from nowhere to third-biggest brewer in London, with two of its beers, more than any other craft brewer, in the list of top 100 pub brands is hard not to hail.

Camden Town Brewery’s new Enfield plant: not your usual boring box, at least

Now it has made the biggest investment in a new brewery in London since Guinness revealed its Park Royal plant in 1936, 81 years ago. On Saturday Camden Town let the public have a first look round its 57,400 square feet production facility in East London which actually started brewing a month ago, and is capable of producing 200,000 hectolitres a year (122,000 barrels in Fahrenheit), more than ten times as much as the original railway arches brewery in Wilkin Street Mews, NW5, opened 2010, and with the potential to rise to 400,000hl a year. Several hundred people covering the spectrum from hipster to sceptical elderly real ale fan (he knows who he is), including families with toddlers in buggies, took advantage of the free tickets, and the offer of bars, food stalls, music, games, beer at £4 a pint and trips round the brewery (with one free beer), and ignored the rain, to travel to Ponders End to see what £30 million of shiny German stainless steel and other assorted high-tech beer-making equipment actually looks like. Continue reading A look round Camden Town’s new Enfield brewery

Fanboy investors put £50m into UK craft breweries: but is that money down the drain?

A total of £50m has been raised in the UK over the past four years in crowdfunding efforts by more than 40 different craft breweries, and half a dozen craft beer retail operators who have tapped tens of thousands of – overwhelmingly male – investors.

More than half the money raised went to just one company, BrewDog, the maverick Scottish brewer, recently valued at almost £1 billion, but other big beneficiaries of the remaining £23 million raised include Chapel Down Group, owner of Curious Brew, which gathered a total of £5.66m; Camden Town Brewery in North London, which raised more than £2.75 million from 2,173 investors via Crowdcube before being sold for £85 million to the international giant AB Inbev in December 2015; Innis & Gunn of Edinburgh, which raised £2.2 million from almost 1,800 investors; and the Wild Beer Company of Somerset, which brought in £1.8m from just over 2,000 backers.

The money is continuing to roll in: Redchurch Brewery in East London recently closed its second fundraising drive through the crowdfunding platform Crowdcube, raising another £433,000 from 688 investors to add to the £497,000 it brought in last year. Also on Crowdcube, The BottleShop, a craft beer importer and distributor with, currently, three bars of its own and plans for more, has just closed its own equity crowdfunding campaign with £403,000 in funding from more than 380 investors

Top 10 UK brewery crowdfunding efforts

But how many of those investors will ever see a decent return on their money, other than the warm glow of owning a small slice of the maker of their favourite beers? With three quarters – 18 out of 25 – of the companies involved for which financial records have been published reporting losses for their last financial year, the answer is likely to be: “Not many, and even then, not for quite a while”. The UK’s financial watchdog, the FCA, warns in the section on crowdfunding on its website: ” It is very likely that you will lose all your money. Most investments are in shares or debt securities in start-up companies and will often result in a 100 per cent loss of capital as most start-up businesses fail.” Earlier this year the Guardian quoted figures from the Insolvency Service showing that 19 drinks manufacturers went sternum to the sky in 2014, 23 in 2015 and 24 in the first nine months of 2016.

Continue reading Fanboy investors put £50m into UK craft breweries: but is that money down the drain?

Why the clear glass bottle question means I’m not bothered Marston’s is buying Charles Wells

Estrella believes in the power of the brown bottle: it’s a pity a few more British breweries don’t

Yesterday’s announcement that Marston’s is acquiring the Charles Wells Brewing and Beer Business for £55 million and loose change (or “working capital adjustments”), at a pretty conservative 5.5 times ebitda, adds another five historic old brewery names, Courage, McEwans, Young’s, William Younger’s and Wells, to a portfolio that already reads like the line-up at a quite good small beer festival circa 1990: Marston’s itself, Banks’s, Jennings, Thwaites, Ringwood, Wychwood, Brakspear, Mansfield, Mitchells (with Lancaster Bomber) and, if you include beers Marston’s brews under licence, Bass and Tetley.

It will give the company six working breweries, and more than 50 “ale” brands, from Bank’s mild to McEwan’s Champion. That’s around twice as many as its closest rival, Greene King, which runs just two breweries, its own original home in Suffolk and Belhaven in Scotland, and continues brewing under the names of just five vanished brewers: Morlands, Ruddles, Ridleys, Hardy’s & Hansons and Tolly Cobbold. On the retail side, however, Greene King owns around 3,100 pubs and bars, making it the third biggest operator in the country, Marston’s “just” 1,750 or so, meaning it vies with Mitchells & Butlers for fourth place.

So what’s with Marston’s policy of adding ever more seemingly pretty similar “twiggy brown bitters” to its line-up? I interviewed the company’s chief executive, Ralph Findlay, two years ago, right after Marston’s had acquired Thwaites’s beer portfolio and made those beers available to all its pubs, and he was pretty specific about the desire to increase further his already considerable ale offer: “Choice is where the market is at,” Findlay said. “Range is something you simply have to have, both for licensees and their customers.” Even after the Thwaites acquisition, he said. Marston’s would continue to look for “opportunistic” purchases if they came up: “We look at potential acquisitions that are consistent with our strategy and which can contribute to our return on capital. We have had a strategy over the past five years that’s not been reliant on acquisitions, though we’ve made them when it’s been opportunistic to do so, such as the acquisition of the Thwaites brewing business. I think we’re in the fortunate position of having an incredibly strong beer range from the various breweries that we’ve got. It’s a strategy that is undoubtedly working.”

Why not, like others, just buy in beers, rather than buy breweries? Because, as Findlay says, it’s a strategy that is working. Marston’s also revealed its half-year figures yesterday. Own-brewed beer volumes were up two per cent, in a declining market. Sales were up three per cent, to £440.8m. Average profit per pub was up three per cent. Like-for-like sales were up between 1.6 and 1.7 per cent. More City analysts than not continue to have the company as a “buy”.

Should we mourn the capture of more beer brands by one large company? Not in this case, I believe, and the reason is something you probably don’t know, because Marston’s has never, curiously, made a big parade about it. Five or so years ago, Marston’s brewers made a mighty oath that they would not let any of their beers continue to go on sale in clear glass bottles, believing that the dangers of the product they poured their hearts into being light-struck and skunky through not using brown bottles was too great. The company’s marketeers accepted the brewers’ ruling, something that brewers at no other large UK ale brewery, apart from Fuller’s have been able to achieve: Greene King, Shepherd Neame, Hall & Woodhouse, all sell some or several of their beers in clear bottles, and even Charles Wells has at least one several of its brands, includingWaggle Dance (originally, history fans, made by Wards of Sheffield Vaux of Sunderland, then Vaux, then Young’s, and thus about to be on its fourth fifth owner) and the Burning Gold iteration of Bombardier (as the Beer Nut reminded me) in flint glass. The commitment by Marston’s to beer quality ahead of spurious marketing arguments about how consumers are supposedly encouraged to buy beers that they can see the colour of makes me more confident that Wells’s brand are in relatively safe hands under the boys from Wolverhampton.

Ironically, or at least I think it’s ironic, one of the brands Marston’s is acquiring distribution rights to via the Wells purchase, the Spanish lager Estrella, has just been running an ad campaign un the UK under the slogan “Darker bottle, better beer”, explaining to consumers that “research has shown that exposure to light damages beer and affects its flavour”, and for that reason it was darkening its bottles by 30 per cent.

I’m slightly puzzled that Charles Wells has said that, while it will now be concentrating on its pub estate, it will also be building a new small brewery in Bedford to brew the Charlie Wells “craft beers” and John Bull range, which it is not selling to Marston’s. Is this continued toehold in the brewing world a way of appeasing the family shareholders (many of them formidable elderly females who, Paul Wells once told me, all had his phone number and would ring him up when they felt the company’s figures weren’t good enough) who might try to vote down the sale of the main brewing operation if they felt the company was cutting off its roots after 141 years of supplying beer to the people of Bedford?

Charles Wells currently brews several beers I’m very fond of, including Courage Imperial Russian Stout, Young’s Winter Warmer and McEwan’s Champion, that will now be brewed under Marston’s control. For probably the only time ever, I’m going to let Tim Page, chief executive of Camra, speak for me: giving a cautious one thumb up to the takeover, he said yesterday: “Marston’s has a positive track record of keeping the breweries it acquires open, in situ, and in many cases investing in the sites to increase capacity, and we urge them to continue that policy. We’d also encourage them to protect the brands that they have acquired and increase the range available to beer drinkers, by continuing to supply them alongside the existing beers produced by Marston’s owned breweries.”