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.
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→
Sitting 30 feet below the surface at a table in a workmen’s refuge dug out of the soft Bohemian sandstone, drinking unfiltered, unpasteurised lager made in 80-year-old open wooden fermenting vessels and poured from big copper jugs, I reflected on how long it had taken me to make this journey. Being a beer writer who has never visited the Czech Republic is highly embarrassing, like being an art historian who has never seen Florence. But every attempt I had made to get to the birthplace of pale lager, in more years of trying than I want to recall, had gone wrong: until now. Another tick on the bucket list, at last.
Two ticks, actually: one for finally getting to the Pilsner Urquell brewery, and its fabled caves, and another for finally drinking at U Fleků, Prague’s almost legendary home-brew pub, eulogised by Michael Jackson 40 years ago in the first edition of the World Guide to Beer and somewhere I had wanted to drink ever since I read about it. The gods of beer guided my hand: it turned out the hotel I had booked in Prague, based solely on a balance of cheapness and closeness to the city centre, was just two minutes from U Fleků (which looks to translate as “The Spot” – as in “hits”, perhaps …).
Reviews I had read years ago suggested the locals at U Fleků did not appreciate all the tourists disturbing their drinking, but on a warm Central European afternoon, parked at one of a dozen big black trestle tables in the pub’s tree-shaded central courtyard sipping a cool glass of Flekovské pivo, the only beer U Fleků makes, a typically fine Czech dark lager, I noticed no such vibe: possibly because the place was still pretty quiet, and tourists were the only customers. But the waiters were attentive, the beer both cheap (compared to West London) and excellent, the snacks first-rate (based on my deep-fried beery cheese) and even the twinkling elderly accordianist over on one side of the courtyard wasn’t too irritating. I need to go back when the place is busier and sample drinking in one of the pub’s big refectory table-filled rooms, all empty of customers when I was there, but it was a good start to my first visit to Prague. Continue reading Czeched out at last→
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.
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
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.
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.
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→
“He shall charge you, and discharge you, with the motion of a pewterer’s hammer, come off and on swifter than he that gibbets on the brewer’s bucket.”
Sir John Falstaff, Henry IV part 2, Act III, Scene 3, by William Shakespeare
Better brains that yours or mine have failed to identify what Falstaff meant by “brewer’s bucket”. It’s to do with carrying liquids, certainly, but unrelated to pails. And actually, you’ve probably seen illustrations of a brewer’s bucket, thought it would not have been called that in the captions. What is more, you’ve probably used the word “bucket” in the sense intended by Shakespeare, though I doubt you or anyone who heard you realised that.
The passage mentioning the brewer’s bucket occurs in a scene where Falstaff and his gang are raising levies among the Gloucestershire peasantry for the king’s army to fight against the rebellious Earl of Northumberland. The two likeliest-looking recruits, big sturdy men called Peter Bullcalf and Ralph Mouldy, bribe Bardolph, Falstaff’s deputy, with 40 shillings each and are allowed to sneak away home (Bardolph, of course, tells Sir John he was only given £3 to let them go) and Falstaff insists the three weeds he has left, Simon Shadow, Thomas Wart and Francis Feeble, will make cracking soldiers.
Shadow, he says, is so thin the enemy gunners will not be able to hit him, Feeble will be suitably speedy in any necessary retreat, while Wart will “charge and discharge” (terms used by gunners – see page 39 of The Art of Gunnery by Nathanial Nye, published 1637) using the quick movements of a pewtersmith planishing the surface of whatever piece he is making, and “come off and on” (which look like swordfighting terms, as in “come on guard”) swifter than – well, what, exactly?
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.
If there is a more international, more fascinating, more illuminating, more must-not-be-missed beer celebration on the planet right now than Carnivale Brettanomyces in Amsterdam, let me know immediately, because it must be marvellous.
Carnivale Brettanomyces, now on its sixth year, calls itself a beer festival, but it’s more a three-day massively parallel series of dozens of different events – lectures, tastings, panels, tap takeovers and food-and-beer matching – across eight different venues around Amsterdam, involving, for 2017, almost 60 breweries from not quite a dozen different countries, and several hundred visitors from at least 17 , from Canada to India.
What is particularly thrilling, besides the skin-tingling geekery of hearing people discuss, and discussing, deeply obscure aspects of beer making, is tasting deeply rare beers: Norwegian farmhouse ales, saisons from tiny Belgian 10th-generation family breweries, pale ales you would otherwise have to take a trip to far-off rural Vermont and queue for three hours in the cold to get hold of.
As the name implies, the purpose of the festival is to celebrate Brettanomyces, the funky (literally) cousin to standard brewer’s yeast, Saccharomyces cerevisiae. Most mainstream brewers, and all winemakers, shun Brett the way vampires flee from crosses, believing the aromas it brings to fermentations – sweaty socks, farmyards, damp leather – are definitely not those they wish to put in front of their drinkers. But Belgian brewers have been creatively using strains of Brett in everything from Lambics to pale ales (Orval, famously, has a touch of Brettanomyces) for centuries, and the yeast was actually first isolated from samples of English stock ales, and named, by the Danish brewing chemist Niels Hjelte Claussen, at Carlsberg in Copenhagen, in or shortly before 1903.
New Orleans is one of the few places in the world where walking the streets at all hours consuming alcohol from an open container is not just allowed, but actively encouraged. This is party city USA. Bars shut only when the last customer leaves, and will gladly sell you drink to go – and while that used to be, generally, cocktails such as the take-away daiquiri, or the infamous Hand Grenade (equal parts vodka, rum, gin, melon liqueur and pure grain alcohol, with a dash of pineapple juice, served in a hand grenade-shaped vessel), since a change in the law two years ago, that drink is increasingly likely to be a local craft beer.
I was in Louisiana ostensibly for a music tour: the first weekend of the New Orleans Jazz and Heritage Festival, and then a trip out to the south-west of the state, where settlers expelled by the British some 260 years ago from Acadie, the French colony on the Atlantic Canadian shore, eventually settled and became known as Cajuns. The plans included an open-air Cajun crawfish boil, with music from masters of Cajun song and dance. But there was enough free time to fit in plenty of beer tourism as well, and multiple places to choose from. Louisiana may have almost the lowest number of breweries per head of any state in the union (only neighbouring Mississippi is worse), but the world brewery boom has not completely passed it by. The state now has 30 craft breweries, three times more than in 2010, and New Orleans is home to nine of them, after losing its only surviving large brewery, Dixie, to the floods caused by Hurricane Katrina in 2005 (The Jax brewery had closed in 1974). What is more, since New Orleans is one of the top eight tourist destinations in the United States, at least a couple of operators have started organising minibus tours taking in several local breweries at once, reckoning that the huge growth in interest in craft beer makes for a potentially lucrative niche alongside the other organised tourist attractions, such as paddlesteamer trips along the Mississippi and visits to spooky cemeteries and antebellum plantations.
You have to be prepared to be flexible here, since beer tourism is still at the toddler stage, and if not enough people book a tour, it will be cancelled at almost the last minute, which is what happened to one trip I had organised before I arrived in New Orleans. But I still managed to get to see eight different breweries, or more than a quarter of all that Louisiana offers, AND hear some wonderful music AND eat some fantastic food AND see some amazing, beautiful sights AND get soaked almost to my underpants in one of the drenching hours-long thunderstorms New Orleans is prone to.
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 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.
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.