Tag Archives: Fuller Smith & Turner

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

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

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

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

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

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

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

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

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

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

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

The mystery of the vanishing 2016 Vintage Ale

Vertical tasting: 20 years of Fuller’s Vintage Ale, in the Hock Cellar

If you haven’t bought your 2016 Fuller’s Vintage Ale yet, either to drink now, or to lay down for later, or to preserve as an investment (what with examples from the 1990s selling for up to £500 a bottle, and even the 2013 costing £40 a pop), tough tubas – there’s none left. Waitrose is totally sold out, so is the brewery shop. Luckily I had a hunch my local specialist, Noble Green in Hampton Hill, might have some, and I manage to snaffle their last five examples.

Fuller’s is being tight-lipped about why the 2016 is now impossible to find: there are rumours that something went terribly wrong with the packaging, but no one seems willing to say. It’s a great pity, because the 20th iteration of Vintage Ale since it was first brewed in 1997, is a lovely, lovely beer, already, at approaching a year old, deep and remarkable. This was the one with Nelson Sauvin as both a boil hop and an FV addition, the first time, I believe, that Fuller’s has used New Zealand hops in VA, and it works brilliantly: there’s limes coming through, and passionfruit, and mandarins, and a little bit of that Nelson Sauvin elderflower, all beautifully integrated over creamy toffee and deep brown malt sweetness, with just enough bitter (40 IBUs) to hold everything together. You’ll drink one bottle, and enjoy teasing out all the flavours so much you’ll want another one to continue the analytical fun, and then at the end of that one you’ll stand up and wobble slightly and realise you’ve just drunk a litre of 8.5 per cent ale.

How the 2016 will develop as it gains more age remains to be seen, but Fuller’s had a gathering in the Hock Cellar at the brewery a couple of weeks back to celebrate the 20th anniversary of Vintage Ale with a tasting of ten different examples going back to 1999, and all are still very drinkable. John Keeling, Fuller’s brewing director, who helped the late Reg Drury brew the first Vintage Ale in 1997, conducted the tasting and revealed a few secrets about the beer. Vintage Ale was, he said, an idea first put forward by the marketing department at the brewery – “they do get a good idea every 40 years or so.” However, Fuller’s knew something like Vintage Ale was possible after bringing out 1845, a bottle-conditioned strong ale made originally to celebrate the 150th anniversary of the Fuller, Smith and Turner partnership in 1995, and discovering that it actually tasted better at 12 months old than when it was new – “totally the opposite to every other beer at that time”.

John Keeling gives a brief history of Vintage Ale

A beer has to be specifically designed to age, Keeling said: “Most beers will not age properly.” After 20 years, Fuller’s now has considerable experience in how beers age, with the interplay of negative reactions – notably oxidation – and a whole series of generally more positive chemical changes, such as Maillard reactions between sugars and proteins, which happen at different speeds, while at the same time alpha acids are breaking down, reducing the perceived bitterness (and boosting the perceived sweetness) and adding extra complexity of flavour, the colour of the beer is darkening and “madeira” and “sherry” flavours start appearing, and eventually “cherry” flavours, which you can cerrtainly spot in the older Vas.. The different speeds that the “good” and “bad” reactions take place at gives a “cycle” to beer ageing, which explains why that bottle of 2013 VA may taste disappointing now, but one of its brothers will be terrific if left for another nine months – and a third bottle of the same brew will disappoint another nine months after that, which a fourth, left for longer yet, will again cheer and enchant as it comes back “on” … you can regard this lottery-like aspect of beer ageing as annoying or part of the fun, but it does mean you shouldn’t dump the whole batch just because one aged bottle is disappointing. It may be just at a poor spot in its cycle.

One important aspect of beer ageing is that temperature is important – and room temperature is the worst temperature to store beer at, Fullers has discovered. It appears the oxidation cycle at around 20C is happening too fast for the “good” cycles to compensate. Either keep the beer cool, or, counter-intuitively, keep it warm: with the warmer beer, the “good” reactions are speeded up more than the “bad” ones, so the oxidation is outpaced. (Doubtless this was the clue to the success of ship-borne India ales in the 18th and 19th centuries, with the oxidation of beer in the casks lagging behind all the Maillard reactions and so on made extra-fast by the warm Equatorial seawaters of the mid-Atlantic and the Indian Ocean.)

VA is always parti-gyled with London Pride, which raised a question: each year the recipe is altered slightly, with different hops and combinations of hops. Have Pride drinkers never noticed over the past two decades that every spring their beer tastes rather different, from the Fuggles and Target of 1999 to the all-Goldings of 2002 (that year’s VA was always a personal favourite, and it’s still wondrously smooth aged 15), the Goldings, Liberty and Cascade of 2014 and last year’s Nelson Sauvin, Goldings, Northdown and Challenger? I’d love to know if anyone has ever commented … see if you can spot the “Vintage Ale” gyle this year.

Extract from the brewing books Spring 1999
Extract from the brewing books 2016

Don’t move that WC!

When you’re enjoying yourself down the pub, there will generally come a moment when urgent necessities need to be taken care of. But increasingly, pub owners seem to be putting difficulties in people’s way – by shifting their ground-floor conveniences to somewhere decidedly more inconvenient, involving negotiating often steep and narrow stairs. I am happy to give the opportunity for a guest rant on the subject of upstairs (and downstairs) loos to my good friend Mr James Castle of the parish of Twickenham in Middlesex – take it away, Jim:

A brief list of pubs and restaurants now with “grade separated” toilets in the Twickenham area: the Prince Blucher, near the Green, the Osteria Pulcinella in Church Street, the Eel Pie, also in Church Street, and the Waldegrave Arms and the Railway in Teddington. Al this is ostensibly to increase seating space for punters which, I suppose, is for rugby days, as these new areas are never occupied. Other pubs which have been like it for some while have their own quirks. The London Road (or whatever it is called now) allows some drinkers to use the downstairs loo; the Fox in Church Street leaves the disabled loo open for all and sundry; as does Twickenham’s JD Wetherspoon pub, the William Webb Ellis, where I do notice old blokes sneaking into the “universal”/disabled loo, sometimes having to queue. I think the staff might not lock it as part of their customer service.

The fermenting room at Fuller's Griffin brewery about 1970, showing the "dropping" system in use: fermentation would be started in the upper rounds, and after a day or two the wort would be dropped into the shallower squares below to finish fermentation.
The fermenting room at Fuller’s Griffin brewery about 1970, showing the “dropping” system in use: fermentation would be started in the upper rounds, and after a day or two the wort would be dropped into the shallower squares below to finish fermentation.

To use these ground floor loos the pubs usually provide a key from behind the bar but I’ve also noticed that some of the big chains (in other areas) allow the “RADAR” key scheme for access. In Twickenham, the George on the main drag, the Brouge/Old Goat or whatever on the Hampton Road, the Three Kings, also in the centre of town, the Barmy Arms by the river and the Sussex Arms by the green are all fine places where a gentleman does not have to climb the stairs to find relief, as are most pubs in Teddington, Hampton Hill, Whitton, Richmond (except the White Cross) and Kingston. But all the pubs I used to go in Putney are now “grade separated” (the Eight Bells a proud exception). I let the White Swan by the river in Twickenham off this “naughty” list as I don’t suppose it ever had a gents’ loo on the level of the bar.

In terms of culprits for all this aggravation, Messers Fuller, Smith & Turner seem to be the main offender, and I’m hearing rumours about the Prince Albert in Twickenham, which I understand is to undergo a refurbishment The “destruction” of their decent pub in Isleworth, the Royal Oak, is appalling, although I suppose there was no room to move the loos upstairs.

Anyway, how “disabled” do you have to be to use the designated ground floor loo? As a sufferer from the after-effects of prostate surgery, I try to avoid unnecessary flights of steps, which can lead to embarrassment, but it’s not as though I use a stick. I am not really disabled (or am I?). In any case, all this extra space the pub companies/breweries have created by moving the loos upstairs/downstairs never seems to be full!

The other problem is the under-supply of cubicles in gents’ toilets. One is not enough. It seems more and more men are eschewing urinals, not just us victims with urological difficulties, but also those with fly-button trousers, small willies and drug problems.

And another thing, the 2015 budget took a penny of a pint. Basically it didn’t happen as most boozers saw it coming and raised their prices by ten pence before Budget Day, and then reduced them by a penny. Pubs are still increasing prices twice a year, although I am told we do not have any meaningful inflation. No wonder pubs are empty. There’s only a certain amount of overpriced second-rate food a pub can sell to compensate for the missing regulars put off by prices. We’re not all baby boomers on generous final salary pensions …

JC

Fuller's brewery, Chiswick in the late 1960s, with the brick chimney still in place. The land for the petrol station on the corner was sold by Fuller's to the fuel company, and later had to be bought back a considerable expense as the brewery expanded
Fuller’s brewery, Chiswick in the late 1960s, with the brick chimney still in place. The land for the petrol station on the corner was sold by Fuller’s to the fuel company, and later had to be bought back at considerable expense as the brewery expanded

Fuller’s Imperial Stout – the most misunderstood beer of the past 12 months?

Imperial stout blurredIs Fuller’s Imperial Stout the most misunderstood beer of the past 12 months? It didn’t stir a lot of enthusiasm when it appeared last autumn: much muttering about the beer being too sweet, very little character, “a bit anonymous”, not drinking to its 10.7 per cent abv, not worth its £7-plus a bottle, not worth buying again. An air of disappointment settled down around it, a feeling that an Imperial Stout from the Griffin brewery, with its reputation for terrific tasty brews, really ought to have been much more of a sock-fryer than this beer was.

Fair? I tried the Imperial Stout myself when it first came out in September (IIRC it was a free bottle actually given to me by John Keeling, Fuller’s head brewer) and yes, it was over-sweet and shallow. I wasn’t particularly surprised, though: this was a strong, dark, bottle-conditioned beer that had only been brewed four months earlier, and was barely out of the maturing tanks. To expect it to be anything other than one-dimensional at that age was like expecting a still-sopping newborn to show the depth and maturity of a 40-year-old. There was no reason to think this beer would not improve considerably as it aged, and the yeasts in the bottle munched away at those heavier sugars that were currently making it taste so sweet. So, feeling flush just before Christmas, I invested in a case, to see if this ugly duckling would turn into a black swan.

My feelings had been strengthened when John Keeling himself tweeted in November about the Imperial Stout: “Hang on to it – it will be better in 6 months”. That’s this coming May, at which stage it will be a year old. But how’s it tasting now? Already a lot better than it was in September, is my opinion. It’s still sweet, but there’s a complexity starting to appear, with thoughts of liquorice toffee, golden syrup and plain chocolate digestive biscuits. (Rose buds? If you say so.) There is still little hint that you are drinking a 10.7 per cent abv brew, but it’s a very smooth sipping beer with a full, slightly peppery mouthfeel. It’s also a beer that needs to breathe a bit, at least at this stage of its ageing: the complexity becomes more apparent the longer the beer is in your glass. It’s also still clearly, to me, a beer that will happily benefit from yet more time being left alone in a darkened room.

If you have a bottle of Fuller’s Imperial Stout, my advice is not to open it until at least the end of May – and I don’t think it will do you or the beer any harm to wait until November. If you have two bottles, try one this April or May and the other next April or May. If you’ve been put off buying it by the bad reviews in some places, I’ll tell you what: buy two bottles, drink one in May, if you don’t like it, I’ll buy the other one off you.

The big problem has been, I think, that we’re not used to beers that don’t deliver their best as soon as we buy them. We understand ageing in other foods: cheese, for example, or meat. I know a restaurant in Hong Kong, the Blue Butcher in Hollywood Road, Central, that has a glass-walled meat store lined with Himalayan pink salt bricks, visible from the tables, where you can ask for your own personal virgin female Japanese wagyu beef steak to be dry-aged for an extra six weeks until it and you are ready. But we’re not yet up to walking into a bar and saying: “I’d like an Imperial Stout, please, aged for another nine months: I’ll be back in December to drink it.” Instead, brewers have been mostly ageing their beers that require ageing for us – Fuller’s keeps some of its Brewer’s Reserve series literally for years before releasing them on to the market when they’re ready. With Imperial Stout it didn’t, to the confusion of many.

Another problem, for some, is the price: £7 a bottle on the Fuller’s website right now. That’s the same as three bottles of Chiswick bitter. But it’s no coincidence that a bottle of 10.7% abv Imperial Stout contains the equivalent amount of alcohol as those three bottles of 3.5% abv Chiswick: you’re getting just the same alcoholic bang per penny whichever you buy. Which gives you more pleasure, only you can reveal.

Interpreting Victorian beer ads

Only a particularly sad beer history geek – that is to say, me – would greet the excellent news that Fuller’s, the Chiswick brewer, has released a reproduction of a 7.5 per cent 19th century brew under the name Past Masters XX Ale with the cry: “Hang on, that’s not an XX – it’s too strong.” OMG, FST XX NTST. So I was relieved that Ron Pattinson, who was heavily involved in helping Fuller’s produce this new-old beer, the first in what is apparently planned to be a series of absolutely fascinating journeys back into the Griffin brewery’s brewing books, calls it an XX(K). Because an XXK is exactly what it sounds like: 1065 to 1075 or so OG, which would have sold at one shilling and sixpence a gallon wholesale, and seven pence a (quart) pot, at a time when actual proper XX was selling for four pence a pot. (And if that doesn’t sound much – a mere two pence a pint – according to this extremely useful site, 2d in 1890 is the equivalent, in average earnings, to £4.10 today.)

Victorian brewers in Britain had a fairly rigid hierarchy of beers in terms of gravity and price: each of the three main styles, ale, pale ale/bitter and porter/stout, would be sold at one of five or six “price points”, the price per gallon dictated by the original gravity. Not every brewer sold every beer at every price-point, but brewers sold, normally, nine to 12 different beers. The remarkable lack of inflation in Victorian Britain also meant that ales and beers kept the same retail prices from the 1840s through to the rises in tax that began with the Boer War.

Many of the names brewers gave the different brews were fairly standard: ales (remember, we’re talking about a time when ale was still different from beer, being less hoppy, and usually sold “mild”, that is, unaged) were almost always given an X designation, the more X’s, obviously, the stronger the ale. A light one shilling (1s) a gallon bitter ale was almost always called AK. Why? After 25 years pondering this question, I still have no good idea. The big London brewers all seem to have indicated their versions of Burton Ales with the letter K, and Ron Pattinson has amassed good evidence for this meaning “keeping”. But “K” can’t mean “keeping” in AK, because AK wasn’t a keeping beer. In addition, “K” can’t be taken to mean solely the Burton Ale style, or a keeping beer: other, smaller London brewers than the really big ones, as we shall see shortly, used “KKK” to indicate, for example, a pale ale, not a Burton Ale.

Putting that problem aside for a moment, here’s a table that should enable you to work out from any Victorian beer advertisement what the likely OG was of any beer in it, and also the likely retail price (if the ad only gives the price per firkin, or nine-gallon cask, double it to get the price per kilderkin, of course): Continue reading Interpreting Victorian beer ads

So what IS the difference between barley wine and old ale?

I see Wikipedia reckons that “According to Martyn Cornell, ‘no historically meaningful difference exists between barley wines and old ales’.” Do I think that? You’ll be unshocked to learn that my beliefs are actually considerably more complex.

One problem is that in the real world, beer styles such as Burton Ale that have been called “barley wines” have also been called “old ales”. And milds. Another is that, as Michael Jackson pointed out in the 1970s, “barley wine” seems to be a name given to some very different beers. If Thomas Hardy’s Ale and Gold Label can both be called “barley wine” despite being utterly different beers, then we have a serious problem in defining “barley wine” as a style.

In fact I don’t believe there is actually any such meaningful style as “barley wine”, despite the BJCP attempting to draw up rules. Indeed, just to show how arsey such attempts at categories are, if you click on that link you’ll see the BJCP calls Fuller’s Golden Pride a barley wine and Fuller’s Vintage Ale an old ale, although they’re actually the same blahdy beer, the latter version being bottle-conditioned, the former not. And while Ratebeer and the BJCP says Thomas Hardy’s is a barley wine, Beer Advocate calls it an old ale. So: make your minds up, Yanks.

While you’re deciding on categories, however, I have to tell you – I’ve come to the conclusion that, as well as barley wine being effectively meaningless (it doesn’t even mean “any strong beer”, since no one seems to categorise Imperial stout as barley wine), there’s no such style as “old ale”, either. Not historically, anyway. From which it follows that (and this really will kick the hornet’s nest) there’s no such style as “mild”*.

Continue reading So what IS the difference between barley wine and old ale?

Two horsey beers and a short kipple

I know it's nothing to do with the beer, I just like the poster
I was lucky, I think, in having my first pint of Bengal Lancer IPA, Fuller’s latest offering, in the Prince Blucher in Twickenham, where it was in excellent condition: a couple of subsequent trials elsewhere in West London haven’t been quite as good, so to borrow an Americanism, “your mileage may vary.” But I don’t think I’ve ever made such lengthy tasting notes about any beer, a tribute in itself.

The first impression is of a BIG hit of hops on the nose, with passion fruit noticeable immediately. It’s a hop-filled mouthful, with a good oily feel, and one of those beers where you’ll find something different in every swallow. Indeed, teasing apart the different taste strands is one of the pleasures of Lancer: it’s a beer for sitting and appreciating. I was getting a hint of blackberry, something earthy in the background, peppermint, the “signature” Fuller’s orange note (though less strong than in many of their beers), all with honey maltiness underpinning the floral hops and a lovely long follow-through.

I’ve seen the beer criticised as being too sweet, but to me any apparent sweetness is more an artefact of the amount of “high note” hop flavour coming through that anything real, and while the emphasis is definitely on hop aroma rather than bitterness I found it ultimately quite dry: I’d be interested in seeing the attenuation figures. Certainly, if you watch the video available here from Fuller’s, the company’s brewing manager, Derek Prentice, implies it’s a well-attenuated brew.

Continue reading Two horsey beers and a short kipple

Ordinary to Britons, extraordinary to Americans

Had a great session last week with two Californian brewers, Mitch Steele and Steve Wagner of Stone Brewing in San Diego, who are in the UK researching India Pale Ale for a forthcoming book from the Brewers Association in the US.

Since I’m the man that has annoyed a large swath of the American beer drinking community by insisting that the story that George Hodgson of Bow invented IPA, a tale beer drinkers in the US grew up on, is completely untrue, they wanted to talk to me while they were in the UK. Thus we arranged to meet in the Dove in Hammersmith, which by no coincidence at all was serving Fuller’s new Bengal Lancer IPA.

I’m going to talk about Bengal Lancer in another posting, so I’ll say nothing about it here except that the new beer was evidently a success at the Dove: the barman told us that the pub was getting worried that it was running out, since the pub had a special £10 promotional offer curry night this week which was meant to include a free pint of IPA, and it was looking increasingly likely they wouldn’t have any IPA left by the time curry night came round.

Anyway, I love drinking beer while at the same time talking about beer and its history to an audience so appreciative it’s taking notes, so for close on two hours I talked about researching IPA and its roots to Steve and Mitch in the tiny public bar at the Dove. Great fun for me: not entirely sure it was great fun for them, especially Mitch, who appeared to be in a precarious position perched on the narrow public bar windowsill and scribbling occasionally. No idea what the barman thought, if he was listening.

Continue reading Ordinary to Britons, extraordinary to Americans

Apologies for my absence

To those of you who have noticed that nothing has been happening here for almost six months, apologies for my absence – this has been caused mostly by the need to try to earn a living, which rather came before beer blogging, and which has taken me a long way away from home (and sources of varied good beer).

However I’m delighted to say that I’ve found a “printed copy” publisher for Amber Gold and Black, my book on the history of British beer styles, which appeared as an e-book last year and which is due to appear as a “proper” book in the UK in April next year – it’s already on Amazon UK, why not pre-order it now and help the cash flow at The History Press, my publisher?

Continue reading Apologies for my absence