Category Archives: Beer news

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.

Red beer, green lager, immature barley beer: the innovations I drank on a ‘jolly’ to Carlsberg

Beer made from immature “green” barley – who knew such a thing was possible? Or “red lager” made from actual red-coloured barley? And what does a beer taste like made with barley so controversial it caused a protest led by a marching band through the streets of Munich back in June?

One for the tickers: Plane Ale, from Mikkeller, only available at 35,000 feet on SAS flights. Thanks to the wonders of GPS-enabled smartphones, I can tell you I was six and a half miles above the small Dutch village of Rottum, in Groeningen province, while drinking this beer

If you’re one of the people who believes no beer writer should ever accept hospitality from a brewer, for fear of being corrupted, then you’ll need to stop reading this post now, because everything that follows was gathered on a trip to Copenhagen last week paid for by Carlsberg. I wasn’t on my own, of course: there were also a dozen or so beer writers and trade journos, and, more importantly from Carlsberg’s viewpoint, 250 or so assorted others including customers from key markets, staff from Carlsberg operations around the globe (I met some very nice men and women from Tuborg Turkey who insisted on having their pictures taken with me, having seen me in the film I was paid to appear in about last year’s Carlsberg ReBrew project, recreating an 1883 lager), people from PR and design companies who have Carlsberg as a client and mates of the Carlsberg Foundation (Carlsberg’s owner), all there to help celebrate 170 years since JC Jacobsen opened the Carlsberg brewery in the Copenhagen suburb of Valby.

The brewing kit at Warpigs, the joint-venture restaurant/brewery by Mikkeller and Three Floyds in Copenhagen’s meat-packing district

For unknown reasons, this trip has encouraged a mountain of scorn and mockery from the rigidly puritan, obsessively put on public record every free pint anybody ever bought you end of the beer-writing world, with the top of that mountain of scorn claimed as the moral high ground. There are a host of reasons for believing this is a stupid and nonsensical position to take, but here are just three before we return to the important stuff. If you believe you have responsibilities to your readers as a writer about beer, you ought to take every opportunity to uncover information they will find interesting. If that includes accepting a free trip from a brewer, and you prefer to insist that your integrity will suffer unless you stay at home, you’re badly letting your readers down by refusing to go and learn stuff on their behalf. Next, if you accept payment in magazines or newspapers for your writings on beer, what do you think the ultimate source of that payment is? The advertising budgets of those brewers you refuse to accept direct hospitality from, of course. Continue reading Red beer, green lager, immature barley beer: the innovations I drank on a ‘jolly’ to Carlsberg

Hurrah! The ten-sided beer mug is back!

In these times of gloom and grey skies, it’s great to have some good news. So hurrah, rejoice, the ten-sided pint mug, iconic symbol of all that is great about British beer, is back in our pubs! If that doesn’t make you feel at least a little bit happier, you’re beyond help, frankly.

The ten-sided mug, known, for fairly obvious reasons, as the lantern tankard (though it goes under several other names, as we shall see), looks to have been introduced in the early 1920s, and was picked up by the Brewers Society in the 1930s as, literally, the face of British beer in its long-running “Beer is Best” promotional campaign: the campaign’s Mr XXX was a man with a ten-sided beer mug as a head.

The face of beer: the Brewers Society’s Mr XXX in the 1930s had a head that was a lantern beer mug

By the 1950s, however, the lantern tankard was being challenged for its position as the number one favourite by the dimple mug, which eventually vanquished its rival some time soon after 1965, and the ten-sided mug disappeared from production. By the early 1990s the only place lantern tankards could be found by those who loved them (as I do) was in charity shops, the harvest of post-death house clearances, those glasses having clearly been stolen from pubs 40 or 50 years earlier by people who had been in their late teens and early 20s when the ten-sided mug was common, and who were now dead and leaving their relatives to dispose of decades of household junk in the most conscience-salving way they could, by donating  it to Oxfam or Cancer Research. Within 15 years even that supply had vanished, since the cohort of dying pensioners from 2005 onwards had been stealing pub glasses when the dimple had pushed the lantern off the bartops of Britain

Henry Stephenson of Stephensons with the original 1949 lantern beerglass made by the Crystal Glass Company, and the reproduction modern glass his company is now selling to pubs and bars

Now the lantern tankard is being brought back, by Henry Stephenson, managing director of Stephensons Ltd, a 149-year-old supplier of catering equipment to the pub, restaurant and hotel trade.

Continue reading Hurrah! The ten-sided beer mug is back!

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.”

The REAL story behind BrewDog’s ‘sellout’ is that crowdfunding will only get you so far

The real story behind the news that BrewDog is copping more than £200 million from the private equity firm that also part-owns Pabst Blue Ribbon, is not, despite the howls of “hypocrisy!”, that nobody can resist a big juicy cheque, no matter how punk they claim to be. It is, rather more sadly, that crowdfunding will only get you so far, and if you have really big ambitions, you’re going to have to get in bed eventually with The Man.

Crowds of crowdfunders: a scene from the BrewDog AGM in Aberdeen earlier this month

The deal with TSG Consumer Partners, the $5bn 30-year-old San Francisco-based private equity firm, sees TSG acquire “approximately” 22 per cent of BrewDog for what the Sunday Times says is £213 million, split between a £100 million investment in the firm and £113 million paid to existing shareholders.

Of the two founders, James Watt is seeing his stake in the firm drop from 35 per cent to 25 per cent and Martin Dickie’s slice goes down from 30 per cent to 22. It’s not clear (to me, anyway) if that dilution is because the pair are selling 18 per cent of the firm between them to TSG, or some of the fall in their percentage ownership comes from new shares being issued: the Sunday Times says one of the motions passed at last month’s BrewDog AGMEGM in Aberdeen saw the creation of a new class of preferred shares, which would guarantee TSG a minimum compound annual return of 18 per cent if the company is bought or floated. There’s a fair bit of dilution, I reckon, or the figures for how much existing shareholders are getting out of the deal don’t add up. But even so, I’d say James is receiving north of £50 million and Martin more than £40 million. Not bad for ten years of being rude about the rest of the UK brewing industry and winding up the Portman Group. Looks like Dr Johnson’s comment more than 230 years ago about selling a brewery being the way to become rich beyond the dreams of avarice is still true. According to Watt, the sums in the deal mean BrewDog now has an enterprise value of £1bn (I make it £968 million, but hey, £32 million is mere loose change), thus making it the first new British brewery “unicorn”.

The most important figure, however, is the £100 million BrewDog now has to play with. That’s four times the amount the company has raised so far through its Equity for Punks crowdfunding schemes, which have given it more than 50,000 shareholders, but taken six years. The company is currently attempting to get $50 million through Equity for Punks USA, though this does not appear to be going anything like as well as its British crowdfunding efforts: the latest figures seem to suggest only $3.5 million or so has been gathered in. That size of sum doesn’t go very far: the hotel and sour beer plant BrewDog is building next to its new brewery in Columbus, Ohio, which finally opened in March, several months late, is costing $6 million. Earlier this month the company announced that it was looking to open breweries in Asia and Australia: based on how much it spent on the Ellon brewery in Aberdeen, that’s £40 million to £50 million that will be needed, in addition to the money required for the planned expansions in Ellon and Columbus. Crowdfunding simply won’t cover expansion of that magnitude.

Tying up with someone like TSG was pretty inevitable, then, if Watt and Dickie wanted to maintain the momentum they have built up with BrewDog. And why should they not? Is it somehow not “punk” to want to be as successful as you can be? Are they meant to say: “No, that’s it for us, really, we’re just going to sit on our arrises from now on”? If you believe in your product, surely you should want to reach as many people with it as possible, however that possibility has to come about? As Watt said in the note that went out to shareholders announcing the TSG deal, it represents “a launch pad for us to turbocharge our mission to make the world as passionate about craft beer as we are.”

Some have declared the TSG deal a betrayal of all the people who bought shares in BrewDog apparently believing that Watt and Dickie would never “sell out”; but this “betrayal” involves a pretty enormous return on those Equity for Punk backers’ investments. As Watt said: “Shares purchased in Equity for Punks I, which closed in February 2010, are now worth 2,800 per cent of their original value. Even craft beer fans who invested in Equity for Punks IV last year have seen the value of their shareholding increase by 177 per cent in just one year.” You don’t get that sort of return putting your money in Nationwide.

Mind, it was perhaps a little naughty of BrewDog to describe TSG as “one of the world’s leading growth funds with successful investments in global brands like Pop Chips and Vitamin Water” without adding that it also has a substantial minority holding in Pabst, purveyor of just the sort of industrial brews Watt and Dickie swore they would never sell out to. I am sure Alastair Hook and the guys at Meantime, whose beers BrewDog withdrew from its bars after the Greenwich brewer was bought by SAB Miller, are smiling sardonically.

No, Heineken, the alcohol-free beer market is NOT going to double in the next four years.

St Peter’s Without Any Redeeming Features

It’s deja bu time again in the world of Big Beer, with the return of excited prognostications for the no alcohol/low alcohol sector. All the marketing “experts” involved in the last round of predictions about how fast sales of no alcohol/low alcohol beers were going to expand have now retired or died, apparently – to be fair, it was 25 years ago – and a new generation is again falling for the fallacy of unwarranted extrapolation.

The Dutch giant Heineken is leading the charge, with the launch in the UK of Heineken 0.0. Currently no-alcohol beer has a tiny one per cent slice of the UK beer market, but David Lette, head of premium brands at Heineken, is popping up in the trade press declaring that he expects to see the alcohol-free beer category double in the next three to four years, and announcing that to make sure Heineken gets its share of this, it is putting £2.5m behind the launch of 0.0, with a £1.5m consumer advertising campaign breaking in July.

If they had given me a tiny one per cent slice of that marketing spend – just £25,000, chaps, very reasonable against what other consulting companies will charge you – I could have saved them all the rest of their money by assuring them that it ain’t going to happen: there will be no doubling of no-alcohol beer sales. And I hate to pour icy water all over young entrepreneurs, but the message is the same for the team behind Nirvana Brewery, East London’s latest, which started at the beginning of this year as the country’s first dedicated no/low alcohol brewery. The no alcohol/low alcohol beer market didn’t take off back in the early 1990s, for a variety of reasons, and for just those same reasons it’s not going to take off now.

In 1987 beer marketeers were even more optimistic about the future of alcohol-free beer, after it had apparently doubled sales in a year, to be worth £45 million, with predictions that it would grow tenfold by 1999. Barbican, the market leader, made by Bass, which had been launched in 1979, was spending £2.5m on an advertising campaign to fight off new entrants such as Kaliber, from Guinness, and Swan Light, from Allied, the first draught low-alcohol beer. Barbican’s first television ad campaign had featured Lawrie McMenemy, then the highly successful manager of Southampton, declaring: “It’s great, man.” McMenemy was later prosecuted for drink-driving, suggesting he perhaps didn’t think Barbican was quite as great as he had been paid to claim. Kaliber had signed up comedians Lenny Henry and Billy Connolly, and the actor Michael Elphick, to act as spokesdrinkers: another example of the dangers of celebrity endorsers, since Elphick was to die in 2002 of a heart attack not helped by his drinking up to two litres of spirits a day.

Thirty years on, that £45 million the alcohol-free beer market was valued at in 1987 pounds is equal to around £180 million in 2017 pounds – which is more or less what today’s alcohol-free beer market in the UK is worth. In other words, in three decades the sector hasn’t grown at all, in real terms. But 30 years ago, David Lette, today head of premium brands at Heineken UK, was studying for his International Baccalaureate at college in Singapore, according to his LinkedIn biography, and he didn’t join Heineken until 2002, thus missing out on the first great failure of non-alcoholic beer to live up to the extrapolations, and probably explaining why he is so optimistic today that the extrapolations for the no/low alcohol beer market are going to come true.

Continue reading No, Heineken, the alcohol-free beer market is NOT going to double in the next four years.

Goose Island hopes it’s laid a golden egg in Balham

The Goose Island Vintage Ale House in Balham, South London

BAL-HAM, gateway, if the guys from Chicago’s Goose Island Beer Co are correct, to a new form of gastropub/craft beer bar: yummy grub combined with rare brews. The very first Goose Island Vintage Ale House had a goosedown-soft opening in a former Be At One cocktail bar in Ramsden Road, SW12 a week before Christmas, and ramped up the publicity last week with a “launch beer dinner” attended by Goose Island’s founder, John Hall, and president/general manager, Ken Stout. I would love to hope that they’re right: if there was just one bar like a Vintage Ale House per London borough, then the beer revolution would have ended in victory, and beer would be back at the heart of British gastronomy, from which it was brutally evicted in the 19th century.

It’s a big irony, of course, that John Hall took the idea of the British pub, and British beer, to Chicago after a tour of Europe back in the 1980s, turned his original Goose Island brewpub into one of the stars of the American brewing revival, and is now returning to the motherland with a take on the British pub that could revitalise the original concept. Ken Stout, in a simile he admits to have borrowed from someone else, compares it to the “British Invasion” of the 1960s, when groups such as the Rolling Stones and the Beatles took American music – the rhythm ’n’ blues of people like Muddy Waters and the country-influenced rock ’n’ roll of Arthur Alexander – back to the United States with their own twist on it, became a smash, and made music fans appreciate anew what they had. Now British beer fans are being taught to love the IPAs and heavyweight stouts their great-grandparents knew by American brewers who have reinvented these beers for the 21st century.

That analogy quickly falls over if you push it too hard, but it’s not totally wrong, and it has wider application than you might first think. The current Good Beer Guide lists more than 20 cask beers by British brewers called “American [something]”, another 20-plus that mention Cascade, the almost archetypal American “new” hop, in their names, and over a hundred IPAs, most, I’d give you short odds, inspired by American IPAs, that is, with big floral hop flavours. The American influence today on British cask beer is now undeniable – and let’s not even touch on the “craft keg” scene. So is Britain ready for what Goose Island says is the first dedicated exclusively American craft beer bar in the UK?

I’d love to believe so, because it provides a different and, I think, very good take on what a pub can be – and, actually, what a tied house can be. I’ve never felt having just one brewer’s products on sale has to be a barrier to complete customer satisfaction: choice is over-fetishised by beer geeks. What the Vintage Ale House offers is a place where beer, good beer, beer from a company that cares about beer, is absolutely central to the offer, but so too is good food – porter and molasses glazed beef cheeks, for example, enough to make any Hereford smile – that is designed to go with beer. Four Goose Island draught beers – IPA, Pils, Green Line pale ale and 312 Wheat – are available, but so are big 76.5cl bottles of the brewery’s seven different heavy-hitting barrel-aged Belgian-style ales, such as Sofie, a 6.5 per cent Saison, Matilda, a 7 per cent “Orval-alike” pale ale and Juliet, an 8 per cent Brett beer flavoured with blackberries. Other beers unique to the Vintage Ale House are promised, to maintain interest and bring people back. The vintage beers will hit you for between £18 and £23 a bottle, but that’s still (mostly) cheaper than the (limited) selection of wines, which start at £20 a bottle and climb to £35. At the same time, I am confident that if you like beer, you’ll love these beers in the context for which the originals styles were made: with food. If the Vintage Ale House finally encourages British pubs and bars to take beer and food pairing seriously as a core strategy John Hall should get a knighthood. I spotted Charlie McVeigh, boss of the small-but-expanding Draughthouse chain of gastropubs, at the launch, hopefully gathering some ideas, though since two of his ten pubs are in neighbouring SW11 he was probably mostly checking the new opposition: Draughthouse sells Goose Island beers. Continue reading Goose Island hopes it’s laid a golden egg in Balham