Goodbye to the last of London’s million-barrel breweries

Flag on the top of the Mortlake brewery 1932

Flag on the top of the Mortlake brewery 1932

It is one of history’s ironies that just as London hits more breweries than at any time in the past 110 years, its brewing capacity is more than halved with the closure of the last of the capital’s remaining megabreweries, at Mortlake.

That the brewery at Mortlake, which has been pumping out hundreds of thousands of barrels a year of Budweiser for the past two decades, should have survived to be at least 250 years old this year is remarkable: it lost its independent in 1889, and the guillotine has been poised above its neck for the past six years.

The Mortlake site, famous as the home of Watney’s Red Barrel, was one of eight huge breweries still operating in London in the mid-1970s, which between them made one in every five pints drunk in Britain. Four closed between 1975 and 1982: Charrington’s in Mile End, Whitbread’s on the northern edge of the City, Mann’s in Whitechapel and Courage by Tower Bridge. Truman’s brewery shut in Brick Lane in 1989, and Ind Coope in Romford in 1992. In 2005, Guinness closed the Park Royal brewery. With the shuttering of Young’s in 2006 (yes, I know there’s still brewing on the site, but it’s not a commercial operation), in 2007 brewery numbers in London hit what was almost an all-time low, of just 10.

It’s instructive to see how brewery numbers have fluctuated over the past 300 years: Continue reading

Why Meantime sold up to SAB Miller – the inside story

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

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

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

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

Continue reading

Why Greene King doesn’t care that the haters hate its IPA

Hard luck, haters: Greene King knows you don’t like its IPA, you think it’s too bland, “not a real IPA” at 3.6% abv, and it doesn’t care at all. Not the tiniest drop. In fact it’s probably quite pleased you don’t like it. You’re not its target market – it’s after a vastly larger constituency. If you liked its IPA, it’s fairly sure those people that Greene King would most like to capture to and in the cask ale market, young people, people still with a lifetime of drinking ahead of them, wouldn’t like it – and for that reason, the Bury St Edmunds crew have no intention of changing their IPA just to make you happy. In fact they’re not changing it at all – except to shake up its look, and put £2m in media spend behind it.

Greene King IPA new look

The new look

Of course, it’s not just Greene King IPA that has hosepipes of vitriol directed at it by the Camra hardcore. Any widely available  cask ale gets the same – Fuller’s London Pride and Sharp’s DoomBar are equally hated, without the haters apparently being able to work out that the reason why these beers are widely available is because lots of people actually like drinking them, even if the haters don’t.

Indeed, it’s the popularity that is prompting the Bury St Edmunds crew into its current push. To its obvious delight, and, I suspect, slight surprise, Greene King has discovered that the flood of new young drinkers coming into the cask ale market find Greene King IPA just the sort of beer they want: there’s more to it that can be found in a pint of lager, but it’s still reasonably safe and unthreatening.

At a launch on Monday night in a bar near Oxford Circus in London to announce a new look for Greene King IPA, and other initiatives including a new website to educate licensees and bar staff on cellar management and how to serve the perfect pint, Dom South marketing director for brewing and brands at Greene King, quoted figures from a survey done last year for the Campaign for Real Ale showing that 15% of all cask drinkers tried cask ale for the first time in the past three years, and 65% of those new drinkers are aged 16 to 24. “We’re seeing a complete revolutionary shift in the drinker base coming into cask ale, which is exciting, because it means that this category, for the future, is in rude health,” South said. And where does Greene King IPA fit in here? “When you look at what those young drinkers want, from a cask ale brand, or just a beer, the three things a new young entrant wants are, first, something that feels right to them, a reflection of themselves, that makes them feel good about drinking the beer,” South said. “They want something a little bit modern, a little bit contemporary. The second thing is, they expect the beer to taste good – but let’s face it, too many pints in the UK are served sub-standard.

Continue reading

Young’s pubs sell a million pints of craft beer in six months

Craft beer taps at the Narrow Boat in Islington, a Young's pub

Craft beer taps at the Narrow Boat in Islington, a Young’s pub

One fascinating statistic popped up when I was talking to Stephen Goodyear, chief executive of Young’s, this week for the day job: Young’s pubs sold a million pints of craft beer in the six months to September 29 this year.

That’s “craft beer” defined as “kegged beers made by small brewers”, in Young’s case, pretty much Meantime and Camden Brewery. To save you working it out, across Young’s 240 or so pubs, that’s equal to not quite two 50-litre kegs a week per pub of beers such as Camden Hells Lager and Meantime London Pale Ale. Since quite a few Young’s pubs don’t sell draught craft, that probably means those that do are indeed getting through two kegs a week or more. It’s also the equivalent of 7,000 barrels a year – there are plenty of small breweries in the UK that don’t even brew that much on their own.

Is that making any difference to Young’s cask ale sales? Well, according to Goodyear, cask-conditioned beer is still around 25 per cent of the total beer sold in Young’s pubs, which is considerably higher than the national average of 16 per cent (more than half as much again, in fact). Some of that is cask beer from other people, but beer branded “Young’s” as a proportion of that is about four to one. So 20% of draught volume in Young’s pubs is still Young’s beers: Special, Ordinary, Winter Warmer and the like.

Not, of course, that Young’s brews those beers any more: since it cashed in on the value of the brewery site in the heart of Wandsworth, they’ve been brewed in Bedford, by Charles Wells. But Goodyear was adamant that having a Young’s beer offer, even if the company still doesn’t brew the beer itself, is still “very important: Young’s beer has been in Young’s pubs for the thick end of 200 years and we always want to keep that going. Wells have done a great job brewing the beers, and I think it’s better than it’s ever been, frankly.”

Not, I’m sure, that many of the more Taliban-esque Camra members will agree, but haters gotta hate, and since the demise of Whitbread, Watney’s and the rest, Camra’s tiny minority of haters have turned to hating the big family brewers who were once the heroes, such as Fuller’s and Wells. Fortunately, they make no difference to the success of a company such as Young’s, which runs some of my personal favourite pubs and sells some of my personal favourite beers, and which saw revenues for the 26 weeks to 29 September up 7.8% in total, to £116.6m, and up 6.9% on a like-for-like basis.

Place-based beers and 13-year-old Special Brew

I have a new “magic beer moment” to savour: drinking 13-year-old Carlsberg Special Brew in the cellars of the Jacobsen brewery in Copenhagen.

den Lille Havfrue

If you’re in Copenhagen you do, really, have to go and pay your respects to den Lille Havfrue

Actually, that was just one of a number of great moments during my trip to Denmark earlier this month to talk about “beer and terroir from an international perspective” to a bunch of brewers not just from Denmark, but Norway and Sweden as well, as part of a conference in the town of Korsør organised by the New Nordic Beer movement (Ny Nordisk Øl, pronounced roughly “noo nordisk ohl”). The men leading the campaign are two brewers, Anders Kissmeyer, formerly of the award-winning Copenhagen brewery Nørrebro Bryghus, and Per Kølster of Kølster Malt og Øl in the appropriately named village of Humlebæk – “Hops Creek” – north of Copenhagen, and PR man Christian Andersen. The idea of Ny Nordisk Øl is to forge a distinctly Nordic take on brewing, using Nordic traditions and, most especially, Nordic ingredients – not just flavourings, such as heather, sweet gale and wormwood, but yeast and other micro-organisms sourced specifically from a Nordic environment, in just exactly the same way as the New Nordic Cuisine movement has fused tradition and modernity to create a style of cooking that is rooted in a place and yet free to experiment (the success of which effort can be judged by the fact that the Copenhagen restaurant Noma, short for “Nordisk Mad”, or “Nordic Food”, which is one of the leaders of New Nordic Cuisine, has been voted “best restaurant in the world” by its peers in four out of the past five years). In a world where the craft beer movement seems intent on replacing one kind of ubiquity – bland Big Brewer lager – with another – highly hopped fruit-salad pale ales – it’s a trumpet-call to battle on behalf of individualistic, rooted, idiosyncratic beers, made by brewers intent on arriving at something that could only have been made in one place and at one time, that excites me greatly.

Hærvejs Lyng

Hærvejs Lyng heather beer: the ‘hær’ in Hærvejs is the same as the here in Hereford

Judging by the number of highly enthusiastic Nordic brewers I met in Korsør – I’m guessing, but there must have been 50 or 60 attendees – and the excellent Ny Nordisk Øl-inspired beers I drank there, it’s a movement with a good weight of support behind it, and terrific results to show those wondering if “beer terroir” is just a gimmick. There have been various names given to the sort of products brewers involved in the Ny Nordisk Øl movement are making, but the one I like best comes from the United States – “place-based beers”. Fortunately I was able to tell the Nordic supporters of “place-based beer” that they are far from alone. In the United States, in Australia, in New Zealand, in Italy and France, there are plenty of others pursuing the same goal, of making beers with what one American called “the essence of here” in them. (I’ll be putting up my presentation on this blog, and naming names, later in the week). The bad news is that in what one might call the “Old World”, there is much less interest in the concept of “beer terroir”.

Hø Øl, or 'Hay Ale',

Mark Hø Øl, or ‘Hay Ale’, once brewed in Britain

One of the ironies of trying to find “beer terroir” today is that once, of course, all beers were local, and reflected their local environment, local ingredients (local hop varieties, “land-race” strains of barley, local water, local yeasts) and local traditions. Porter, the world’s first “industrial” beer, the popularity of which powered the growth of what became the world’s largest breweries at the time, was developed in London as a local beer for local people, satisfying the desire of the city’s working classes for a refreshing calorie-filled beer, brewed using brown malt made in Ware, Hertfordshire, 20 miles to the north, hops from Kent, just to the east, and London well-water, full of calcium carbonate, which helps make good dark beers; matured using giant vats, a technique invented by and originally unique to London brewers; and served using methods of blending old and new beer specifically reflecting customers tastes, while being drunk with foods it was regarded as a particularly fine accompaniment to: boiled beef and carrots, for example, a very traditional old London dish. Even pilsner, the most widely reproduced beer style in the world began as a beer very much reflecting its Bohemian locality: made with Moravian malted barley, local Saaz hops and its home town’s particularly soft water. Coming from the other direction, brewing traditions that are still deeply rooted in the local landscape – in particular the Belgian brews such as Lambic – now seem to be as reproducable as pilsen became, and almost as global. Every American brewer seems to want to make a Belgian ale laden with Brettanomyces bruxellensis, and they can buy that yeast right off the shelf, rather than having to move to Payottenland. When you see a brewery in Britain making a Gooseberry Gose, a variation on a style of beer from Saxony that was effectively unknown until a few years ago, you know you’re living in a world where “local” appears to mean very little.

Xperimentet No 2, beiitered with sea wormwood ('strandmalurt' in Danish

Xperimentet No 2, bittered with sea wormwood (‘strandmalurt’ in Danish)

Which is what the supporters of Ny Nordisk Øl are fighting against – and although they don’t have many fellow travellers in the rest of Europe, it’s to be hoped that when other brewers start tasting the beers that Ny Nordisk Øl has inspired, it will spur them to produce ales that reflect their own places. Here are my notes on some of the “place-based beers” I tried in Denmark: An unlabelled (IIRC – although I may just have failed to record the name) ale brewed with sea wormwood (less bitter than the wormwood used in absinthe), camomile and sea buckthorn, three popular flavourings with Nordic brewers seeking to make a hopless ale. This had a lovely, deep, tongue-coating, very up-front bitterness, a pale, slightly cloudy appearance, a mouthfilling rotundity, and finally a sweetness under a full, vegetally/weedy flavour. Ny Nordisk Hærvejs Lyng from the Vyborg Bryghus: a hop-free heather beer with a massive nose of honey, and liquid honey in the mouth but with a sharp tart lemony undertone, lightly petillant with no head. It’s alcoholic lemon and honey cough sweets. (The ale is named for the Hærvejen, or “Army Way”, a road that runs down the Jutland peninsula from Viborg to, eventually, Hamburg.) Continue reading

The 40pc leap in capacity at the Doom Bar brewery and the 2014/5 Cask Report

One of the items of news that may have shot by you recently is that Molson Coors is pumping enough money into the Cornish economy to boost capacity at Sharp’s brewery to a potential 350,000 barrels a year of Doom Bar ale, a 40% expansion. There is no guarantee it will be able to shift that amount of what is already the UK’s biggest-selling cask ale, of course. But if it did, that would mean Doom Bar had become a brand one tenth the size of Carling lager. That might not sound much, but blimey, there’s not been a cask ale brand with that kind of clout in the market for decades.

It would be fascinating to know what all those drinkers of more than a million pints of Doom Bar a week  think the beer actually is: do they believe they are drinking “craft beer”? Do they know it actually comes from one of the biggest brewers in the country?

It’s also an interesting question as to whether any other cask ale brand, even with the weight of Molson Coors behind it, could ever have contemplated looking at potential sales that recall the heyday of Draught Bass, even in an era when cask ale drinkers may be entitled to feel more optimistic than they have been able to be for almost two decades. Has Doom Bar’s popularity any connection with it coming from the village of Rock, described by the Daily Telegraph as “the Kensington of Cornwall”, populated during the summer by affluent teenagers staying at their friends’ multi-million-pound holiday homes, and surrounded by expensive Michelin-starred restaurants owned by big-name chefs? Plenty of Rock’s affluent young visitors will be drinking in the Mariners, the pub owned jointly by Sharp’s and the celebrity chef Nathan Outlaw, and Doom Bar is likely to be the tipple for many. Does that at all put a halo on the beer that helps it rise to sales levels effectively unheard of for a single cask beer brand?

Cruikshank's draymen

Draymen, by George Cruikshank. Note the chequers on the doorpost, an indicator of a public house.

Well, probably not, but it is certainly the case that you are indeed much more likely to find the young and affluent drinkers who flock to Rock to meet mates (and mate) drinking cask ale than you would have even ten years ago. As the latest Cask Report revealed, a third of all 18-34 year-olds have tried cask. And it’s not that they have tried it and walked away back to Carling or Peroni vowing “never again” – of all those who have ever tried real ale, 86% still drink it to some extent. Nor is it just young men trying out real ale. A third of all female alcohol drinkers have tried cask – and, again, 75% of women who have tried cask still drink it.

Continue reading

Is Ireland ready for a 12-handpump Wetherspoon’s?

The two Irish beer fans lowered their voices and spoke almost in awe. They had been looking through the windows of the new JD Wetherspoon pub in the upmarket Dublin suburb of Blackrock, due to open its doors for the first time this Tuesday. “It’s got TWELVE handpumps!”, they said. That is twice as many as any pub in the Irish Republic has ever had before – and even that pub only had four handpumps actually working at any one time. Indeed, according to one (unverified) estimate, the 12 handpumps at the new ‘Spoons, the company’s first in the Republic, will boost the total number of working handpumps in the entire country by 33 per cent.

Is Ireland ready for a 12-handpump ‘Spoons? I was last in Dublin all of eight years ago, when the beer scene was still pretty dire. Since then, the country has seen a London-like explosion in the number of craft beer breweries, from a small handful to around 40 (indeed, one of the newest – N17 – actually sounds as if it ought to be in London, though it’s named after the road that runs from Galway to Sligo, and the brewery is in Tuam, rather than Tottenham).

Brew Dock Amiens Street Dublin

The bar-top line-up of craft beers at the Brew Dock in Dublin

Accompanying that has been a boom in the availability of craft beer: yes, Guinness, Budweiser and Smithwick’s are still ubiquitous, but if you’ve got the excellent Beoirfinder app, you’ve got a good chance of tracking a pub or bar with at least something more interesting on tap. And there are now bars, such as Brew Dock in Amiens Street, Dublin, near Connolly station, where the bar top has more than 20 craft keg taps, selling beers from the United States and Britain as well as Ireland.

If you can discover a working handpump anywhere, though, it’s likely to be just the one, and you could find, as I did in the Alfie Byrne bar in Dublin last Sunday, that the beer on the one handpump is almost irritatingly familiar – in this case Fuller’s London Pride. I can drink that 10 minutes’ walk from my house. Ironically, many great old Irish pubs still have a row of “policeman’s truncheon”-style handpump handles on the bartop, but they’ve not been used for 50 years. As soon as Guinness perfected the nitro-serve for draught stout, in the early 1960s, keg beer immediately replaced cask from Bantry Bay to the Derry quay, and from Galway to Dublin Town. (It was that dire situation, of course, that helped inspire them four fellas on holiday in the Republic in 1971 to form the Campaign for the Revitalisation of Ale.) Continue reading

PBD, the issue that splits British brewing

A model of a brewery constructed on a half of a barley seed made by Ukrainian miniaturist Nikolai Syadristy

Now THAT’S a microbrewery: a model of a brewery constructed on half of a barley seed, made by Ukrainian miniaturist Nikolai Syadristy

If you want to start a punch-up, gather together some brewers from small operations, producing less than 5,000 barrels a year, add some brewers from larger concerns, producing 60,000 barrels or more, clamp a steel helmet on your head and then ask them to discuss Progressive Beer Duty. Never mind about discussions over the exact definition of “craft beer”, or whether keg beer is a valid choice for an artisanal brewer, PBD is the issue that splits the British brewing industry. Smaller brewers eligible for the tax cuts that PBD gives them, which can be equal to as much as 24p a pint, insist these are essential to help them compete with larger firms, and that as a result the choice to the British beer drinker has been greatly widened since its introduction. Larger brewers insist that PBD distorts the market, and that it unfairly hampers them in competing for business from the pub companies, because the pubcos, naturally enough, go to where they can buy beer cheapest, which means from those brewers being taxed 24p a pint less.

After a couple of news stories last week featuring two brewers, Arran Brewery and Black Sheep, who talked about the adverse impact PBD had on their own businesses, I wrote a comment piece for the day job about the inevitable distortions PBD causes in the marketplace. All taxes cause distortions: that’s just how economics works, and tweaking or adjusting taxes so that some sections are treated more lightly than others creates more distortions. You may feel the distortions that PBD creates are worthwhile because of the boost it seems to give to very small brewers, or you may feel that PBD is unfair and needs either serious tweaking or scrapping. Views seem to pretty much fall either way depending on whether the person expressing an opinion is a large brewer or a small one.

After my opinion piece came out, there was a minor twitterstorm, with small brewers totally denying Paul Theakston of Black Sheep’s thesis that pubcos were turning to smaller, PBD-entitled breweries to, effectively, snaffle that 24p-a-pint tax rebate for themselves. I had the commercial buyer of one medium-sized pubco, with more than 1,000 pubs, contact me specifically to deny that his beer-buying was influenced by whether or not the brewer he was buying from was entitled to PBD and could therefore afford to sell to him more cheaply. I had one small brewer demand: “Is there really a significant volume of market-distortingly cheap beer coming from small brewers?” Well, Black Sheep lost 6,000 barrels of pubco beer sales in the last financial year, and Paul Theakston appears to blame PBD allowing smaller rivals to sell cheaper beer. Another small brewer declared that PBD “helps a less efficient brewery compete, which is the idea.” But I don’t think I’m alone in believing that business shouldn’t be a handicap race, with the best being forced to carry a greater burden so that those not so good can have a chance of crossing the finishing line first.

Anyway, here’s the original opinion piece in full: I look forward to reading everybody’s comments!

The unintended consequences of Progressive Beer Duty

It’s a bitter irony that Black Sheep Brewery, one of the most successful of the “new” small breweries, now finds itself badly hit by a tax regime specifically fought for, and brought in, to encourage new small breweries. The problem is that Black Sheep, which brews excellent beers at its home in a converted maltings in Masham, North Yorkshire, is, after 21 years, no longer small – or, at least, no longer small enough to qualify for Progressive Beer Duty.

PBD, brought in by Gordon Brown when he was Chancellor of the Exchequer in 2002, means any brewer making, currently, no more than 5,000 hectolitres of beer a year (a little over 3,000 barrels in old money) pays only half the normal excise duty, which, after VAT is taken into account, means an effective subsidy of 24p a pint. It gets complicated after that, as the tax relief slowly falls off with rises in production, but eventually full excise duty is payable on every pint once a brewer’s production goes over 60,000 hectolitres. The idea, as put forward by SIBA, the small brewers’ association (which had been campaigning for PBD since 1989) and the Campaign for Real Ale, was to enable small brewers to compete better, by removing some of the cost burden on them, and thus to encourage new entrants into the market and, as a result, improve consumer choice.

There is no doubt that new entrants have hit the market in a mighty tsunami: the number of breweries in the UK has boomed from around 450 in 2002 to some 1,150 today, a 155% increase. Gordon Brown has certainly had a lot to do with that explosion of new small breweries. But almost all those new entrants are competing in a minority segment of the British beer market, cask ale, and while cask ale may not be declining as fast as the overall UK beer market, it’s certainly not expanding. Those brewers under the PBD ceiling are, effectively able to sell their beer in a tight market up to 24p a pint cheaper than a brewer like Black Sheep, which finds itself having to pay full tax because it has been successful enough that it makes more than 60,000 hectolitres of beer a year. (It is not just Black Sheep that suffers from what many regard as an unfairly tilted playing field in this way, of course: so do almost all the old-established family brewers, from Fuller Smith & Turner to Adnam’s to Robinson’s.) The wholesale purchasers of beer (that is, the pubcos, mostly), naturally enough, go to where they can get it cheapest, and that is from those brewers who brew 60,000 hectolitres or less.

As a result, Black Sheep has found itself squeezed out, losing 6,000 barrels of pubco business in the 12 months to 31 March this year, and turning from profits of more than half a million pounds in 2011/12 to a loss of almost three quarters of a million pounds in 2012/13. Black Sheep’s founder, Paul Theakston, said: “Our Achilles heel has always been in our cask beer sales to the national pub companies, where … a policy of buying an increasing proportion of their cask beers from microbrewers, thus taking advantage of a significantly reduced buying-in cost through Progressive Beer Duty, has been the order of the day.”

What is happening, of course, is that the cost savings from PBD, instead of going to the small brewers, are going to the big pub companies, who can use the existence of a large number of alternative suppliers versus a comparatively small number of buyers (a condition known to economists as monopsony) to beat down the price of the beer they buy and pocket themselves a considerable slice of the 24p saved through PBD. This should not be a surprise to anybody. Indeed, it was specifically predicted in 2001, before Chancellor Gordon Brown even introduced PBD, in an article in the Journal of Small Business and Enterprise Development by three economists, Geoff Pugh, David Tyrrall and John Wyld, called “Will Progressive Beer Duty Really Help UK Small Breweries?”

It’s a firm rule in journalism that the answer to any headline with a question mark at the end of it is always “No”. That normally only applies to such tabloid-style headlines as “Did the SAS kill Diana?” and “Will your pet give you cancer?” But the answer to the question Pugh, Wyld and Tyrrall posed seems to be pretty much in the negative, too. After a great deal of economists’ algebra, they concluded that, in the short term, “The overall effect of PBD will increase the profits of individual breweries, increase distributors’ profit and increase the quantity sold on the final market [because of a lower price].” However, “Over time increased profit for small breweries will attract new entrants … for the distributor, the ability to spread or reassign orders among an increased number of suppliers enables the price to be renegotiated downwards … the distributor is able to transfer increased profits from small brewers to itself.”

In other words, PBD gives you lots of breweries all right, but all that does is increase competition, squeeze profits in the brewery sector back down to where they were before PBD came along, and boost profits for the pubcos. That’s great if you’re a pubco, but it’s pretty tough if you’re Black Sheep, because you are suffering all the pricing pressures PBD allows pub companies to put on brewers, without being able to take advantage of PBD yourself. It also discourages those really small brewers who find themselves becoming successful from growing too much: earlier this week Gerald Michaluk, the MD of the Arran brewery in Scotland, which produces that country’s best-selling bottled craft ale, admitted he was delaying expansion deliberately to try to stay below the PBD threshold: “We have modestly grown the business because of our not wishing to exceed the half-duty production threshold without first upgrading our brewery on Arran to make the savings necessary to be able to afford to pay the extra 24p per bottle in tax that an increase in production would bring.” Any tax regime that inhibits growth and investment is a bad tax regime.

Black Sheep’s answer to the problem of competition from those with a better tax deal is to shift over, in part, to a sector where very few of those 700 new small brewers since 2002 will compete – keg beer. Announcing the move, Robert Theakston, Black Sheep’s MD, said: “I am aware of the preconceptions surrounding keg, but the opportunity the keg market brings is not to be dismissed. It will allow us to reach into the types of venues that can’t justify cask beer. There are an awful lot of sports clubs, hotels and restaurants than can only take keg beer that we currently can’t trade in.” This cannot be the result Camra would have wished for when it campaigned alongside SIBA for Progressive Beer Duty: one of the best-known (and best) new cask ale brewers being forced into making keg beer because PBD has brought so much competition into the cask market.

The Bass red triangle: things AB-InBev won’t tell you

Bass pale ale labelThere are stupid marketeers, and there’s AB-InBev. The Belgo-Brazilians have decided to rename one of the oldest beer brands in Britain, Bass pale ale, a literally iconic IPA, as “Bass Trademark Number One”. It’s a move so clueless, so lacking in understanding of how beer drinkers relate to the beers they drink, I have no doubt it will be held up to MBA students in five years’ time as a classic example of How To Royally Screw Up Your Brand.

The move is predicated upon the red triangle that is found on every bottle of Bass pale ale, and on every pumpclip of the draught version, being the first registered trademark in Britain. The generally accepted story is that after the passing of the Trade Mark Registration Act of 1875, when applications to apply for trademark registration opened on January 1, 1876, a Bass employee was sent to wait overnight outside the registrar’s office the day before in order to be the first in line to file to register a trademark the next morning, and that is why the company has trade mark number one. There is no evidence for this story: but it is certainly true that a label with the triangle on it, and the words “Bass & Co’s Pale Ale” is indeed the UK’s Trade Mark 1, having been the first to be registered on New Year’s Day 1876.

So why now rename a beer that has been around since the 1820s, when Bass first started brewing a bitter pale ale for the Far East market, after an event that happened when that beer was already 50 or more years old? Because AB-InBev is flailing around for a way to rescue the beer, once the most famous in the world, from the miserable position it has been in since, to be honest, long before what was then Interbrew acquired the Bass brands in 2000. Some idiot marketing focus group got together and tried to think of a unique selling point for the beer: and the only one they could come up with was that it bore the UK’s first registered trade mark.

As Pete Brown has already remarked, this is pretty much a result of the AB-InBev mindset, which knows far more about trademarks than it does about beer. Bass pale ale is a beer with a fantastic heritage: it was, for more than a century, a hugely highly regarded brew, globally as well as in the UK (my grandfather told me that before the First World War, he and his pals would scour North London looking for pubs that sold draught Bass), so much so that it suffered more than anyone else from lesser brews being passed off as the red triangle beer. That was one reason why Bass was so keen to register its own trademark as speedily as possible.

Before we continue, here’s a panegyric on Bass from a book published in 1884 called Fortunes Made In Business which will show you how much Bass was an icon:

Continue reading

Revival of ancient barley variety thrills fans of old beer styles

Chevallier b arley

Chevallier barley, revived after seven decades

In a move that has thrilled beer style revivalists, a beer has been brewed from what was Victorian Britain’s most popular barley variety for the first time in at least 70 years.

What is most interesting for historians of brewing is the way the revived malt acts when used to make beer, putting a new slant on the interpretation of old beer recipes, suggesting they produced beers using the ingredients available at the time that were both fuller in the mouth and less bitter than the same recipes using modern malts, and also beers that needed longer to mature than those made using modern malts do.

The new-old beer, a nut-brown bitter ale made using Chevallier barley, which once went into the vast majority of pints sold in Britain, will be on sale at the Duke of Wellington pub on Waterloo Road, Norwich this coming weekend in time for Camra’s annual members’ meeting in the city. But hurry: there’s only one firkin available.

Chevallier barley was revived by Dr Chris Ridout of the John Innes Centre in Norwich, an independent grant-aided plant and microbiology research centre, which hold seeds from 10,000 varieties of barley at its genetic resources unit.

Dr Chris Ridout growing Chevalier barley at the John Innes Centre

Dr Chris Ridout growing Chevalier barley at the John Innes Centre

The reason for reviving Chevallier was to look again at its malting quality and yields, both of which were good enough to see the variety dominate British barley growing and spread around the world. Dr Ridout and his team have now discovered that Chevallier also has resistance to Fusarium ear blight, which, if it can be cross-bred into other varieties, could be very valuable in the fight against a fungal disease that can devastate grain crops.

Continue reading