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.
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.
I was disappointed and angry to see Rooney Anand, chief executive of Greene King, calling in the Daily Telegraph last week for minimum unit pricing for alcohol. Disappointed because the arguments for minimum unit pricing have been totally debunked, and Mr Anand should really have known he was talking rubbish – or his advisers should have told him. Angry because I cannot understand why he is using his position as boss of one of the largest brewers and pub operators in the country to promote the agenda of the neoprohibitionists for whom minimum unit pricing is but a small step on the way to totally restricting the sale of alcohol.
“Binge drinking continues to adversely affect our nation,” Anand cried, insisting that we have a “growing culture of irresponsible drinking”. And yet since 2004 there has been an 18.9% fall in alcohol consumption per head and consumption is now at its lowest level this century. Violent crime linked to alcohol has fallen by 32% since 2004 and by 47% since 1995. Where is your evidence for a “growing culture of irresponsible drinking”? Since 2005 the number of men “binge drinking” (a dubious concept in its own right, as I pointed out here) has fallen by 17%; the number of women binge drinking has fallen by 23%; and binge drinking among 16 to 24-year-olds has fallen by 31% among men and by 34% among women. In 2012-13, alcohol consumption in England and Wales fell by 2.1% year-on-year, to its lowest level since 1990. “When it is possible to walk into a shop and buy a bottle of beer for less than a bottle of water, it is no surprise that, as a nation, we are moving in the wrong direction in our relationship with and consumption of alcohol,” Anand asserts. So a fall of almost a fifth in alcohol consumption in the past ten years is a move in the wrong direction, Rooney? Or do you not actually know that consumption is falling? Incidentally, that fall of nearly a fifth in alcohol consumption is actually far more than its proponents claimed would have been achieved by introducing minimum pricing. Oh, and it’s NOT possible to buy a bottle of beer for less than the price of a bottle of water, and never has been, unless you are talking about the most expensive designer water.
Anand goes on to claim that a 50p minimum unit price “could” reduce the costs to the NHS caused by alcoholic overindulgence by “as much as” £417m a year. Ignoring the two sets of weasel words there – “could” and “as much as”, the use of which sucks all the veracity out of his claim– it’s a pathetic claim anyway. £417m equals 31p per household per week. Big swing.
Next up, Anand references “a recent study by the University of Sheffield” which “indicated that minumum unit pricing” would have a larger positive impact on those in poverty, particularly high risk drinkers. Allegedly, minimum unit pricing “targets those prone to binge drinking, with their consumption expected to fall 7% through raising the price of approximately 30% of units sold to harmful drinkers.” But as Paul Chase, author of the excellent book Culture Wars and Moral Panic: The Story of Alcohol and Society (I’ve nicked all the stats here from him), has pointed out, “the Sheffield minimum pricing model is based on absurd assumptions, such as the belief that heavy drinkers are much more price-sensitive than moderate drinkers, and assumptions made about the price-elasticity of demand for alcohol that are at odds with what economic research and common sense tell us about the relationship between price and consumption.” To fill that out: there is no evidence at all that making drink dearer for heavy, problem drinkers will stop them drinking as much as they already do. Indeed, it seems more than likely that what will happen is that they will cut down on expenditure elsewhere in order to find the money to carry on drinking as much as ever.
Anand calls the failure to introduce a minimum pricing of alcohol in Scotland “disappointing”. But Scotland’s attempt to introduce minimum pricing hasn’t gone through because it is currently the subject of an investigation by the European Court of Justice, which is likely to give its decision on whether the proposal is legal, or breaks EU competition law, only at the end of 2015 or early in 2016. Expert betting is that it will be ruled illegal.
It is hard not to assume that Anand is backing the idea of minimum unit pricing because he thinks that it makes him appear on the side of the “good guys”, despite being a producer of “demon alcohol”. Perhaps, too, he thinks that minimum unit pricing will hurt the supermarkets more than it will the brewers and pub owners, and for that reason it’s a Good Thing. But he really needs to think about who he is getting into bed with by promoting minimum unit pricing. These are people prepared to lie and distort to promote their aims – the claim that “up to” 35% of A&E admissions are “alcohol-related”, for example, which is completely made up, of the equally preposterous claim that “Alcohol misuse hands a hefty annual bill of £21bn to UK taxpayers”, which is, again, based on unverifiable guesses and false reasoning. But the anti-alcohol lobby genuinely doesn’t care if its statistics aren’t true. It only wants to see its policies adopted, because it thinks it knows best what is good for all of us. To quote Paul Chase again: “Public discourse on alcohol is dominated by an absolutist, loony-left dominated, alcophobic public health movement that has become a vehicle for Big Business bashing.” Really, Rooney, do you think you should be promoting a policy these people want?
Oh, irony. It’s only a very short time since I mocked Nick Fell, marketing director at SABMiller, for sharing with us, in a presentation about getting more women to drink beer, the “duh, really?” statement that “no one wants a pink beer, including ladies.” But now I have discovered a beer I’m sure very many women will like – and it’s pink.
Not that they’ll like it because of its colour, of course: they’ll like it because it’s a very fine beer, with great depth and complexity of flavour, a beautiful deep bassoon-like bitterness (in contrast to the violins-and-saxophones bitterness of hoppier beers) giving structure to a sweetness that is laced through with liquorish and dark green herbal flavours. How do I know women will like it? Because when I sampled a bottle myself, right after thinking: “This is an extraordinarily good beer”, my next thought was: “I bet Mrs Z would enjoy it” – and not only did she enjoy it greatly, she relieved me of the rest of the bottle, consuming it all herself. Mrs Z is rarely a beer-drinker, touching only the very occasional pils and the even more occasional wheat brew. So if she loves a beer that I think is great too, you can bet we have a genuine cross-party vote-winner.
What is this beer? It’s Crazy Viking, one of the brews I brought back from my trip to Denmark last month to talk at the conference on Ny Nordisk Øl, or “New Nordic Beer”, it’s made by Det Lille Bryggeri or Little Brewery, from the small village of Bringstrup, just outside Ringsted, in the middle of the Danish island of Zealand (the one Copenhagen sits on), and it’s a deep ruddy pink because it contains considerable quantities of beetroot (red beet, to Americans) and beetroot extract, added both into the wort before boiling and in the fermentation tank. It also has in it masses of liquorice and nettles, those two giving most of the bitterness, I’m guessing, and only an “extremely limited” amount of hops. Beetroot is about seven per cent sugar, of course, and doubtless that helps to lift the abv of the beer up to 7.9%.
Det Lille Bryggeret’s brewer, René Hansen, has made beers with beetroot as his contribution to the New Nordic food and beer culture movement: the first, with just beetroot and nettles, was called Red Viking, and the one I drank (until Mrs Z stole it from me) has liquorice as well and is called Crazy Viking. It’s the second New Nordic Beer movement-inspired brew to completely blow me away, after the Hø Øl (hay ale) from the Herslev Bryghus I mentioned here (more irony: the Herlsev guys are now having to fight their local bureaucrats, who are trying to ban them from putting hay in their beer on the grounds that it’s not a listed food ingredient under EU regulations. I’ve sent them a copy of a page from Thomas Tryon’s book published in England in the 1690s that mentions hay ale, to show it’s an old tradition – hope it helps, it’s a marvellous beer.)
I’m not sure the Crazy Viking beer name would recommend itself to women drinkers, and nor, probably, would the beer’s bottle label, with its image of an utterly sloshed Viking, one helmet horn drooping. But the liquid itself is an example of what a number of people have suggested since Nick Fell raised the spectre of the missing female beer drinker again back in October: that if there is going to be a style of beer that will appeal to a broader spectrum of women than drink beer now, it certainly won’t be one made by a giant corporation setting out deliberately to capture that market, and it’s much more likely to be the result of an accidental spin-off from a craft brewer or group of craft brewers, like the Ny Nordisk Øl crowd, making a beer that everybody agrees is great, regardless of gender.
Which gives me an excuse to rerun on this blog the dreadful history of the efforts brewers in the UK have made – unsuccessfully – to target women drinkers for three decades, sometimes with, yes, pink beer. For the history of beer marketing is littered with the smoking wrecks of attempts to get females to drink more beer, dating back to the 1980s.
I gave a presentation in Denmark to a conference called to discuss “Ny Nordisk Øl” – “New Nordic Beer” – on “Beer and terroir from an international perspective” on Friday November 7. This, slightly tweaked, expanded in a couple of places and cut in a couple more, is that presentation.
The brewers of Denmark, Sweden and Norway are already enthusiastically making beers that reflect the place they are made, using local ingredients: you can read about some of those beers here. But what the Ny Nordisk Øl movement is doing is just part, albeit a tremendous part, of a wider movement to get away from internationally reproducible styles of beer, a movement that is finding expression in North America via campaigns such as “Beers made by walking about” and by brewers such as the Almanac Beer Company in San Francisco, the Mount Pleasant Brewing Company in Michigan, the Scratch microbrewery and farm in Southern Illinois and Plan Bee brewery in New York state, in Italy, in New Zealand, and in Australia, most eloquently by Ashley Huntington of Two Metre Tall brewery in Tasmania.
As I researched for my presentation, it became clear that the “place-based beer” movement is a growing global phenomenon, albeit as yet those engaged in it often seem unaware that others are fighting a similar crusade. This is a long blog but, I hope you’ll agree, fascinating in its implications for the future of craft beer.
Before I begin talking about beer terroir, it would be best to say exactly what I mean by the term in the context of brewing, what I think you need in order to be able to say that a beer has characteristics that fall under the name “terroir”, and some of the problems of trying to talk about “beer and terroir”.
There are plenty of complicated ways of defining “terroir”, and what it takes for “terroir” to be reflected in a beer. But the one I like best was said by an American craft brewer who said he was attempting to achieve in his beers “the essence of here”.
The Micropub Association should be absolutely raging with the Campaign for Real Ale. Because under the misguided idea that it is “saving” the British pub, Camra is trying hard to make sure no new pubs ever get opened again.
Once again this is a case of not properly thinking through the implications of a proposed policy. What Camra wants to do is to try to make it much more difficult to close pubs (more on why that’s a stupid idea later). So why will making it more difficult to close pubs also make it much more difficult to open new pubs, in the way that the Micropub Association has been doing so successfully over the past few years, at a rate currently running at two a month (a better new pub opening record, afaik, than any pub company is currently achieving.)
The problem is that the restrictions Camra wants to put in the way of anyone trying to shut a pub means that landlords will be extremely reluctant to let their property be turned into a new pub. And similarly banks, building societies and other lenders will be deeply unwilling to give anyone a mortgage to buy a property they want to turn into a pub. Why? Because if the new pub business goes nipple-skywards after a year or three, the landlord now has a property that, under Camra’s proposed rules, needs planning permission to be turned back into something other than a pub. So instead of speedily being able to find another tenant, the landlord now has to go through the expensive and time-wasting procedure of getting the building “depubbed” again before it can once more become a coffee shop, an opticians or whatever. Similarly the potential mortgage lender is not going to want to risk having to repossess the building that housed a failed new pub business, and, again, having to find the staff, time and money to put in a planning application (do you know how long it takes to get a planning application through?) for change of use so they can then flog the place to a non-pub user. So – finance for people wanting to open new pubs is going to dry right up, because Camra has a dumb idea it thinks will help pubs stay open.
Indeed, the first move should anything like Camra’s “planning permission to close pubs” idea approach the statute books will be a rash of pub closures, as pub owners shut their marginal pubs before they have to seek local councillors’ permission to do so. But even if such a law did come in, does anyone seriously believe it would prevent a single pub from closing? Of course it wouldn’t. And trying to preserve failing pubs in aspic is a remarkably dumb idea anyway, because the ultimate effect is to damage successful pubs by depriving them of business they deserve.
The whole idea that pubs need special protection is nonsense, anyway, as I have frequently argued. Pubs are not sacred. The rights of pubgoers do not trump the rights of property owners. The disappearance of any pub is not the same as, eg, the disappearance of a Saxon church. Pubs are, and have always been, “churned” all the time: one closes, another one opens. (It may surprise you to learn that JD Wetherspoon has closed more than 100 of the pubs it has opened over the years). If a pub is making less money for its owner than it would under another use, the owner must have the right to maximise their income. If a pub closes, and a community feels it needs a pub, let someone open a new pub, in a more viable site with fewer overheads. Except that if Camra has its way, opening that new pub will be much more difficult.
Camra can’t even get its own arguments straight. It complains about pubs being turned into shops and then declares that “69% of all adults believe that a well-run community pub is as important to community life as a post office, local shop or community centre.” So – shops are important, too! Indeed, the reason why so many pubs are being turned into shops is because to many communities, local shops are MORE important than pubs, in the sense that more people use their local shop and spend more money in it, than use their local pub. I would guarantee you that any pub turned into a Tesco now has a wider selection of the community crossing its threshold, more frequently, than ever happened when it was the Duck and Dive, or whatever. Most pubs have a remarkably low number of real regulars, and the importance to the community that Camra ascribes to them in the 21st century is a product of sepia-tinted nostalgia for the times before the last old maid bicycled to Holy Communion through the mists of the autumn morning (G. Orwell).
If there is one single thing that would increase the chance of survival of the British pub – and I won’t yield to you, Camra or anyone in my desire to see our pubs strong and thriving – it would be a dramatic improvement in the standard of cask beer served in those pubs. Cask beer is (or should be) the unique selling point of our pubs, and Camra would do a far better job thinking up ways to improve the quality of our pints than inventing stupid tweaks to planning laws that won’t work, and will actually have a seriously detrimental effect on the efforts of people like the Micropubs Association trying to open pubs of just the sort Camra members approve.
I don’t like people telling me what to do: very probably you are the same. I don’t just get angry at people telling me what to do: I also get angry when people try to tell other people what to do, arrogantly and without cause, people like James Watson, who holds the position of East London Pubs Preservation Officer for the Campaign for Real Ale.
I live in a nice Edwardian house that has a covenant in the original deeds which declares that it can never be used as licensed premises. Do you think that’s wrong? I think that’s wrong – it’s my house, and within the limits of the law, I should be able to do what I like with my own property. If I want to turn it into a freehouse called the Duck and Dive, then – provided I don’t inconvenience my neighbours more than is reasonable – that should be my right.
Turn that covenant on its head, and any major restriction on my right to do what I like with my property within the bounds of the law applies just as much – that is to say, if there were a covenant on this dwelling saying it could only ever be used as a pub, that it must be a pub for all time, that would be just as wrong. It’s mine, I own it – don’t tell me what to do with it.
James Watson, however, disagrees. A gentleman called Sandeep Johal has bought an old Victorian pub called the Prince Edward, in Wick Road, Hackney. I’ve never been in it, but from the outside it looks like a pretty typical East End boozer. Mr Johal wants to knock it down, and build a five-storey block of nine flats in its place. He owns it – it’s his property, and within the law, surely he should be permitted to do with it what he likes. Nine flats in Hackney – sit down now if you’re reading this outside London, but flats in E9 can go for anywhere between £500,000 and £750,000 each. I’d guess that even after the cost of acquisition and building, Mr Johal would be looking at a profit of £3 million or more, minimum. Is anyone going to pay him £3 million more than it cost him to acquire the Prince Edward, just to keep it open as a pub? Is he going to make £3 million in rent in any time under 30 years if it continues to run as a pub? (Clue – no, twice.)
Mr Watson says otherwise. He told the Hackney Citizen “The only reason [Mr Johal] wants to bulldoze this pub and build flats is for short term financial gain for himself” – James, you’re saying that as if it’s a bad thing – “at the expense of this community, and as a representative of a consumer rights organisation that champions responsible drinking, I think that stinks.” As a member of that same consumer rights organisation, and as a strong supporter of responsible drinking, I can’t see what either consumer rights or responsible drinking have to do with someone’s right to do with their own property what they want to.
According to the Hackney Citizen, Mr Watson then went off on a rant against hipsters, apparently based on the fact that the Prince Edward’s customers are largely working class and, in considerable part, of West Indian origin. The Citizen quotes Mr Watson as saying: “The problem with gentrified hipster Hackney is that you leave other people behind. You leave behind working class, dare I say poor, downtrodden people. [You may dare say, James, but I fear you sound like a pretentious, patronising prat for so daring] These are salt of the earth people who are not going to pay £5.50 for a bottle of craft beer. They want to be in a place where they recognise the food offering. Many of these people’s parents and grandparents have been coming here and marking their life events here for years. They are almost the forgotten people of Hackney, but these people are council tax payers and they have been here a lot longer than the hipsters.” There you are, Mr Johal: the rights of the people to eat sausage, egg and chips and drink cheap beer trump your right to do what you want with something you bought.
I love pubs, and I hate pub closures just as much as James Watson hates pub closures. (I quite like hipsters, though – I like the way they’ve brought the dimpled beer mug back into fashion.) I’m as sorry as James Watson is that the people of Hackney look like losing a place that has been a part of their lives since the 1860s. But the idea that because a building is or has been used as a pub, that makes it special and privileged, and deserving of protected status is nonsense. It’s just the same nonsense that saw the self-styled “pro-pub party”, the Liberal Democrats, pass a motion at their spring conference in York a couple of weeks ago under the title “A Better More Sustainable future for British pubs”, proposing to give pub tenants the right to buy their freehold at an independently assessed market value if their pub company puts the site on the market. But “market value” as what?
A premises might have a market value of £500,000 as a pub, since the returns on its usage as licensed premises would only support that valuation, but a value much more as a supermarket, if the returns on its use as a supermarket supported that value, and a value of millions if it was a suitable site for conversion into a block of flats. If the law the Lib Dems want brought in says the tenant can only buy his pub’s freehold at a price that reflects its higher value as a supermarket, or a block of flats, then if he buys it, he is going to struggle to cover his costs trying to run it as a pub. If, on the other hand, under the Lib Dem proposals, he can buy it at its value as a pub, but it is still worth more as a supermarket, or a block of flats, the first thing any smart tenant will do is flog the pub to Tesco, or a property developer, himself, thus (1) transferring hundreds of thousands of pounds of value from pubco to tenant and (2) still losing the “community” an “asset”. Is this really what the Lib Dems want?
The debate about “protecting” pubs from closure is conducted as if there were only a finite number of sites capable of ever being pubs, and every pub that becomes a supermarket, or a private home, or even a coffee bar means a permanent reduction in the number of pubs there could ever be. But this is total nonsense, of course: even in the days when it was much harder to open a new pub than it is now, Tim Martin, to name just one entrepreneur, was putting up his signboards on premises that had all sorts of previous uses: banks, cinemas, shops, post offices, and the rest. The same process is still going on, all around the country: the micropub movement, for example, has seen pubs open in premises that were formerly, to pick just a few examples at random, a butcher’s shop, an antiques shop, a taxi firm’s offices, a hairdresser’s, a dry cleaner’s, a pharmacy, a tattoo parlour, a kitchen showroom, a bookshop, a launderette, a bakery, a health food shop … you are, I’m sure, getting the picture. There are even a couple of micropubs opened up in premises that had been pubs originally, but which had closed 80 or 100 years ago. If the will, and the demand, is there, pubs can spring into being almost as easily as nail bars and tattoo parlours, kebab outlets and coffee shops.
Pubs don’t need their existence protecting by legislation because, as has been demonstrated hundreds of times over the past couple of decades alone, if the demand is there a pub will arise, and if the demand isn’t there, a pub will close. People get emotional when they read headlines that say “Village loses its last pub”, but almost every time the pub is closing because villagers aren’t using it in sufficient numbers – and if there really is genuine demand, there is little or nothing to stop a village entrepreneur opening a new pub, micro or otherwise, to replace the one that is closing. A pub is not an irreplaceable asset, the way a Norman church is.
If a pub is truly an “Asset of Community Value”, as defined by the Localism Act of 2011, then the community will be showing how much it values that asset by walking through the door and spending enough money every week to dissuade any pub owner from closing it. Truly thriving pubs, pubs that make more money as pubs than they would do as anything else, don’t need protection. It will be argued that many pubs would thrive without the overheads of the pubco on their backs: but this ignores the very considerable support, visible and invisible, the pub receives from the pubco, and the fact that any tenant buying a pub from a pubco won’t be getting that support and will now have the overheads of his new mortgage-provider on his back instead. It will be argued that some pubcos, desperate for money because their bondholders are putting the squeeze on, will sell even a thriving pub to a supermarket if it can get that quick hit of much-needed cash from the sale. But again, just as nobody will run a pub if they can make more from it as a supermarket, a supermarket operator isn’t going to run a supermarket in premises that would genuinely make more as a pub.
It will also be argued that in places like Hackney, the price of property is a threat to every pub, that the money to be made from redeveloping each and any pub site into blocks of $500k-a-pop flats means even the most thriving pub is in need of protection. That may be true, though I note that even around Oxford Street, where rents are truly shocking (this is no hyperbole – I saw a room full of experts literally gasp a couple of weeks ago at the news that the rent on an Oxford Street restaurant site was £2.3 million a year), pubs still manage to stay open. But I still don’t believe that if a building is a pub, it must be a pub for ever: I cannot see how somewhere that was operating as a nail bar, for example, suddenly becomes privileged because it has been turned into a pub. And I strongly believe that the only results of the Liberal Democrats’ new policy would be either to persuade some pub tenants suddenly able to buy the pub a pubco wants to sell to try to keep unviable pubs going at their own expense, with every likelihood of failure, or to rob pub owners of much of the value of their pubs and hand it to tenants for nothing, while still ending up with a closed pub.
(Parts of this rant appeared on the Propelinfo.com site on March 14 2014)
Did you see the news? It was in all the papers last week, and on TV and radio too. Apparently someone’s opened a pub within less than 750 yards of a road.
Journalists, I’m sorry to say, love a moral panic. If we can get someone to be vocally outraged, our day is made. And there were plenty of people delighted to be vocally outraged over the opening of a Wetherspoon’s pub at a motorway service station. You would think Tim Martin, Wetherspoon’s bemulleted founder and chairman, had set up a stall on the hard shoulder of the M40 and was handing out free tequila shots and pints of wine.
Now, the point about this particular motorway service station is that it’s not actually ON the motorway – it is, indeed, all of 750 yards away, as the roadkill-sated crow flies. You have to pull off at Junction 2 and drive for a couple more minutes before you finally get to the Hope and Champion pub. It is because the pub is also accessible from the A355 that it was allowed to be built. Places serving alcohol at service stations only accessible from a motorway are still banned.
But the substantive point is, of course, that the Hope and Champion is no different from almost every other pub in Britain, in being by, near or actually on a road of some sort. Even mainland Britain’s most isolated pub, the Old Forge at Inverie, has a road running past the front door, though it doesn’t actually connect up to the rest of the country’s road system. Pubs have been opened alongside roads since Anglo-Saxon alewives stuck bushes on poles outside their hovels to indicate that a fresh brew was available inside. Plenty of pubs – hundreds, if not thousands – are still open alongside fast main roads, like the famous Ram Jam Inn near Oakham, a landmark on the A1 for generations of motorists. You can (or could – apparently it’s boarded up right now) drive out of the Ram Jam Inn’s car park straight into the A1’s northbound carriageway, where the speed limit is just the same (for cars, at least) as on a motorway: if you’re not paying attention, a 38-ton artic may leave its imprint on your boot. It’s a lot more dangerous than joining the M40 after leaving the Hope and Champion.
So where is the recognition that if you have hundreds of pubs like the Ram Jam Inn, then you can’t create a fuss about the Hope and Champion? Swamped in a sea of illogical spit-and-fury. The RAC declared that with a pub now open at a motorway service station, “the temptation to drink and drive can only be increased by easier access to alcohol,” without, apparently, considering that there is already easy access to alcohol for drivers in roadside pubs north and south, east and west. The safety campaign group Brake declared: “The opening of a pub on a motorway is deeply concerning, and presents a potentially deadly temptation to drivers,” without saying how the Hope and Champion is any more of a potentially deadly temptation than the Ram Jam Inn was to drivers on the A1, or the old Bull at Stanborough, near Welwyn Garden City, whose visibility from the A1(M) saw it featured in a 1980s TV ad, or the Royal Oak, Farnham, a Chef & Brewer pub about three minutes’ drive down the A355 from M40 Junction 2 and thus barely more inconvenient for motorway drivers tempted to get lashed than the Hope and Champion is.
The stupidest, most crazed response came from Sky News presenter Eamonn Holmes (well, the man’s an idiot anyway), who managed to call Wetherspoon’s PR spokesman, Eddie Gershon (very nice man, Eddie) the “devil in disguise” in a rant on TV, proclaiming that a pub would change a “perfectly nice” motorway services into “a scenario of hell”. It’s probably too cheap to say that for any rational human being, a motorway service area already IS a scenario of hell, but Holmes’s argument, apparently, was that coaches would pull up full of revellers from stag or hen’s parties, or football supporters. “One coach will pull in with a load of football fans, then a second coach will pull in with rival fans. What will happen then? You’re putting temptation in people’s way. You’re the devil in disguise – aren’t you? You’re offering a scenario of hell – are you not?” he frothed at Eddie G, who was far calmer than I would have been, and failed to call Holmes out for being an idiot who had apparently forgotten that coach parties of football supporters (1) have hundreds of other pubs with large car parks to meet their rivals in, and (2) won’t necessarily require alcohol for it all to kick off anyway.
What is even more frustrating than the illogicality of these arguments, and the willingness of newspapers, TV and radio programmes to give people space to promote these ridiculous claims, instead of slapping them about the head and telling them not to react as if drivers are like toddlers at a supermarket check-out, who can’t resist grabbing for the bad-for-you goods on display, is the framing of the debate about the availability of drink once again as an argument solely about intoxication and its evils. It’s something the whole drinks industry, from producers to retailers, colludes in, and it’s why personally I believe setting up the Portman Group was an extremely bad idea, because its existence plays to the anti-alcohol lobby’s agenda-setting. By banging on about “responsible” drinking, the drinks industry’s own warrior in the “alcohol awareness” wars destroys the main argument for drinking: that it’s fun. No one is ever allowed to say that drinking is fun, because fun and responsibility don’t mix.
Which means that another recent news item, one that ought to have been a powerful weapon in the fight against the sort of wowsers who rage against pubs being opened near roads, has been largely ignored, because it doesn’t fit the anti-drink message, and the pro-drink lobby seems too frightened of the puritans to pick it up out of fear that they’ll be accused of encouraging drinking whose primary purpose is other than being “responsible”. I’m talking about the discovery by the Medical Research Council in Scotland, reported two weeks ago, that a pint in the pub with friends is good for a man’s mental health. Well, of course, you are saying, that’s obvious. But having a proper study point up the positive sides of drinking is such a change from the torrent of negativity about alcohol normally corroding the public debate that the industry really should be making much more of it.
The researcher behind the study, Dr Carol Emslie, said: “We have to understand drinking is pleasurable, it’s sociable, it’s central to friendships. If you ignore that part of it then you are not understanding the context in which people drink. You’re drinking together, you’re laughing and joking and it’s uplifting. It helps you to open up and relax. It was very much the idea that alcohol or drinking in these communal groups had this positive effect on your mental health.” Exactly. But could we ever see an ad campaign that said: “A pint with your pals – it’s good for your mental health”? It may be true, but nobody seems to want to say so.
Of course, the anti-alcohol army, unable to dismiss a properly conducted piece of research completely, still tried to sneer. Dr Evelyn Gillan, chief executive of Alcohol Focus Scotland, told The Scotsman newspaper: “Drinking together in the pub may be a positive way for men to build relationships and seek support from each other, as long as this isn’t at the expense of a damaged liver or other health problems.” Please, Evelyn, lighten up. Have a drink.
Still, at least the public are generally more sensible than Sky TV presenters. A survey by the local newspaper in Bucks asked people: “Should the Wetherspoon’s M40 pub at Beaconsfield be allowed?” At the last looking, the response was 83 per cent saying “yes”, with just 17 per cent saying “no”.
A slightly shorter version of this rant appeared on the Friday Opinion page of the Propel Info websire on Friday January 24 2014.
Get out the pitchforks and the blazing torches: I’m about to talk again on the subject of pub companies and their tied tenants.
The trouble with trying to have a rational debate about the tied pub system, where pub tenants have to buy their beer from a list provided by the company that owns their pub, is that a fair number of pubco tenants have lost a great deal of money trying to run their pub, and, understandably, they’re angry – very angry. Naturally, they’ve looked around for someone to blame for their losses, and the obvious culprit, as far as they are concerned, is the pub company. Clearly, they say, if the pub company had not been charging them so much rent for the pub, and so much extra for their beer than that beer costs on the open market, then they would have been able to make a success of their business.
If anyone tries to suggest that maybe the pubco isn’t totally responsible for their failure as pub-running entrepreneurs, that person will be subjected to howls – screams – of outrage and fury. The pubco, its failed tenants will insist, is a scam, a conspiracy designed to rip off people who only want to make a reasonable living and who are prevented from doing so by the despicable activities of the company that owns their pub and conned them into signing a lease on it. You, however, for daring to suggest anything otherwise, are (and this is only a selection of the names I’ve been called in the past couple of weeks) a writer of “inaccurate, delusional gumph”, “peddling, paid or not, pubco propaganda”, a “lazy sofa-lounging beer blogger” (I like that one – I might have it printed on a T-shirt), “a zombie”, “a lazy journo who can’t grasp the subject”, someone who “very obviously [doesn’t] know what you’re talking about, either that or you are a liar”, “arrogant, patronising, blinkered and myopic”, and “a denier, a make believer, a fantasist”.
However, it’s clearly nonsense to suggest that the pubco model is responsible for every operator of a tied tenanted pub who goes belly-up, when you consider the following simple fact: one third of all small businesses – regardless of the sector that they are in – fail in the first two years. You would expect, therefore, even given the cushions that tenants of pub companies have around them (the cheap start-up costs inherent in someone else leasing you the premises in which a going business is already running, free training on how to run a small business, free advice on tap from the pubco BDM, or business development manager, assigned to them to help out, help with promotions, discounts on everything from insurance to Sky TV, and so on) that a considerable number are going to crash quickly, simply because that’s what small businesses do.
Even if they get through the first year and are beginning to succeed, counter-intuitively, perhaps, it is when very small businesses start to expand that they are most in danger. According to the credit monitoring company Experian, when a business grows to six to 10 employees, the flexibility it benefited from as a micro-business starts to disappear. Fixed overheads become greater and cash flow starts to cause more serious issues if not carefully monitored. From cases I have studied, it is cash flow that seems to do for most, if not all pub tenants whose businesses collapse: not having the ready money to pay the VAT man, the rent, the bill for the beer, the power companies and so on. Indeed, cash flow problems probably cause most small business failures: I had a mate who ran a micro-brewery in Hertfordshire, and his business went under because, although on paper it was profitable, his cash flow was wrecked by pubs not paying him for the beer he had delivered, and the taxman wouldn’t wait for his own slice.
It is a truth universally asserted, at least in the comments section of the Morning Advertiser, that Pubcos Are Evil, their business model consisting solely of luring the naive into their sticky webs, where, entrapped, the poor victims can be sucked dry of all their money and spat out, poorer and sadder. All their policies, the pubcos’ highly vocal opponents proclaim, from charging their tenants more for their beer than the cost of that beer to freehouses to the ways they deal with struggling publicans trying to stay afloat, are Evil, Evil, Evil. Pubcos, the antis assert, should be broken up, or at the least highly regulated, with the dreaded beer tie taken away.
Now, there’s no doubt that one model, the highly leveraged pubco, turned into a slow car crash, as running up billions of pounds of debt to buy thousands of pubs and grow as big as possible turned out to be an OK plan in an economy that was doing well, but an absolutely dreadful idea in an economy that was tanking and with income from pubs falling.
But it doesn’t need much analysis to realise that the idea that pubcos constantly, cruelly and deliberately exploit their tenants, that they maximise the tenants’ pain for their own gain, is nonsense. The best, most efficient way for a company owning pubs to make the maximum amount of money is to ensure the people running its pubs make the most money they can, too. A failing tenant is no use to any pubco – indeed, every tenancy that fails costs a pubco thousands of pounds, in lost revenue and lost rent, plus all the associated expenses of closing a pub up temporarily, finding new tenants, dealing with the fall-out and so on. Pubcos, I can tell you, because I’ve talked to them about it, invest much today into trying to attract the best possible tenants, and providing them with training and support.That’s rather more than used to happen 30-plus years ago when it was the big brewers who had all the tenancies, and too often all they wanted to see in a prospective tenant was a pulse and a deposit.
Yes, you can point to cases, some of them high-profile, that show pubco tenants who have put huge efforts into their pubs, and subsequently crashed and burned, with, allegedly, only hindrance from their pubco. But I’d bet on most/nearly all pub failures being down to people simply not having all the necessary talents to run a pub: as I am about to assert several more times, it doesn’t make economic sense for a pubco to do anything other than put as much effort as it can to keeping a tenant on the road and a pub open.
The claim is that the big pubcos take an unfair share of the profits made by the pubs they own, that they make “huge excess profits” by forcing “the publican and ultimately the consumer” to pay high prices for the beer they buy. But there is no evidence I know of that beer in pubco pubs is more expensive to the consumer: how could it be, for very long, when the consumer is free to go where the beer is cheapest? Nor would it make business sense to restrict the choice of beers in a pubco pub compared to free-of-tie houses, if a wider choice of beers gives freehouses a business advantage over pubco pubs, because once again pubcos would be damaging their own revenues by driving customers away through restricting beer choice. And, indeed, the evidence is that even tenants of the biggest pubcos can choose from many hundreds of different beers from several hundred different breweries. Oh, and there’s not a lot of evidence right now of “huge profits” at the pubcos, though that, of course, is down to trying to pay down the huge debts the bigger ones accumulated when they were expanding. Continue reading In praise of Ted Tuppen→
“Never be afraid to be controversial” is less a statement of policy and more like a reason for living, as far as the BrewDog guys are concerned. Last week James Watt, the brewery’s co-founder, put up on his blog an impassioned argument putting the case for an “official” definition of craft beer to be adopted in the UK. Below is my response, published originally over at the day job, showing how he’s completely wrong.
I won’t yield to anybody in my admiration for James Watt’s abilities as a guerrilla marketeer. He and Martin Dickie, co-founders of Brewdog, have skillfully turned a small independent brewery in – with the greatest respect to the people of North Aberdeenshire – the rear end of nowhere into one of the leaders of the small independent brewery sector in the UK. They now have a reputation among many beer drinkers as perhaps the most iconoclastic, “edgy” brewers in the country, a growing empire of their own bars around the UK, and a presence on the shelves of leading supermarkets and in any “craft beer” bar worthy of that name. From last month the pair even have their own TV show, Brew Dogs, on the Esquire cable TV network in the United States, where they travel across America, visiting bars and breweries and creating “locally inspired” beers. Fantastic. And yet, Watt’s latest campaign, to try to get an “official”, “industry recognised” definition of “craft beer”, to “protect the fledgling craft beer movement in the UK and in Europe” and also to “protect and inform the customer”, suggests to me he doesn’t actually understand the business environment he is working in as well as he thinks he does. What is more, his arguments for the need for an “official” definition of craft beer are entirely nonsensical and totally evidence-free.
Watt says the reason a proper definition of “craft beer”, “to be recognised by both CAMRA and SIBA and also at a European level by the Brewers of Europe Association” is required is because of “three words – Blue Fucking Moon”. Just like many small brewers in the US, he is clearly annoyed that Molson Coors’ Belgian-style wheat beer comes in packaging that could pass as a product from a much smaller operator, and does not declare itself in huge type to be made by one of the giants of the American beer market. He quotes approvingly Greg Koch of Stone Brewing in California, who also wants to define “craft beer” as something in opposition to “the industrialised notion of beer” that has been “preying on the populace for decades”. Unfortunately it’s not clear if Koch, or Watt, are really interested in “saving” the drinking public from “industrialised” beer, or protecting their own sales from a much bigger rival.
Watt insists that the British craft beer movement is being held back because of the lack of an official definition of craft beer, and “the US craft beer movement has only been able to grow as it has because of the US Brewers’ Association’s official and accepted definition of craft beer.” Naturally, Watt fails to give any evidence for these assertions, because there isn’t any. They’re total nonsense. Good grief, the definition Watt points to only came into existence eight years ago, in 2005, when the Brewers’ Association was formed of a merger between two other industry organisations and the combined membership decided to rig the rules so that the “big guys” would be excluded from their club. Nobody ever said before 2005: “I’m thinking of trying Stone Brewing’s Arrogant Bastard Ale, but without an official and accepted definition of craft beer, I’m really not able to.” The boom in the US craft beer scene over the past 30 years has not been because anybody came up with a definition of “craft beer” and suddenly “craft beer” was able to take off: but because a wave of new producers dedicated to making small-batch, artisanal, flavourful beers met a wave of consumers happy to drink those sorts of beer.
This mistaken idea that consumer movements can only prosper when they have “official” guidelines to channel their enthusiasm leads Watt to assert that while “we want retail stores, bars, restaurants and hotels all to have a craft beer section in their offering,” it is “almost impossible to get them to commit to this without being able to offer them an official definition of what craft beer is.” More evidence-free nonsense. I don’t believe that any supermarket, any bar owner, any restaurant ever said to any small brewer: “I’d like to stock your beers, but without a definition of craft beer I’m just not able to do so.” Watt also declares: “What we don’t want, is for them to a create a craft beer section in their shop or menu only for this to be carpet-bombed by beers that are not craft.” What’s the matter, James – afraid that if a bar is selling Blue Moon alongside 5am Saint your beer will do badly?
The truth is not just that trying to define craft beer is impossible anyway. Watt suggests that the definition should be a completely circular one, that “craft beer is a beer brewed by a craft brewer at a craft brewery”, with the argument then devolving onto what a “craft brewer” and a “craft brewery” are – but his idea that the Campaign for Real Ale, an organisation Brewdog regularly chooses to battle with, would back any definition of “craft beer” Brewdog and SIBA might come up with is another nonsense.
The real point is that, despite Watt’s fantasy, any “official” definition of craft beer, will have little to no impact on the marketplace. Those operators who might be defined as “craft beer brewers” and “craft beer retailers” seem to be doing very well in the UK without any official definition of what they are making and selling – and in any case the UK’s small brewery movement seems to me to be well beyond the “fledgling” status Watt is trying to claim for it. If Brewdog is trying to trip up the likes of Sharp’s – now owned by Coors and thus, under the definition that Watt would like to see made “official”, not a maker of “craft beer” any more – Watt really needs to realise that getting craft beer “properly” defined will make no difference at all to the amount of Doom Bar being sold across British bar tops. Overwhelmingly the beer-drinking public, in Britain, in the US and elsewhere around the world, care nothing for “official” definitions of what they are drinking: that goes for the minority who are “craft beer” drinkers, and, of course, the vast majority who prefer those beers Watt and Koch define as “the industrialised notion of beer”, and wouldn’t drink a craft beer if you gave it do them free, no matter what category you said it was in.