Diageo has reported strong growth across all regions but warned of future volatility and has made a strong start to fiscal year 2022, with organic net sales momentum across all regions.
CEO Ivan Menezes (pictured) said, “This reflects excellent execution, as we benefit from resilience in the off-trade and continued recovery in the on-trade. However, we expect near-term volatility to remain, including the potential impact of any future waves of Covid-19,
“We continue to invest ahead in marketing and innovation to underpin long-term growth. Our business in Europe is recovering ahead of our expectations. Off-trade demand has remained robust and there is good momentum in the on-trade.
Our businesses in Africa, Asia Pacific and Latin America and the Caribbean are performing well, although volatility in these markets is likely to persist. Travel retail continues to be disrupted.”
“As previously indicated, we are managing rising inflationary pressures, which are partly due to supply chain constraints.”
“I am pleased with how our business is performing and I remain confident in our ability to deliver long-term sustainable growth and shareholder value. We will continue to do business in the right way, from grain to glass, for all our stakeholders,” he added.
Diageo said its North American business has performed well, although it has suffered some supply chain constraints, which it said reflects resilient consumer demand.
Jason Caddy delves into the rum category in Scotland to see what’s hot brand and trends-wise and ponders whether it’s ever going to eclipse its old nemesis gin.
Scotland and rum production go way back before the current sonic rum boom that’s almost deafening thanks to brand innovation and customers getting more of a taste for it. Sailors introduced it to the UK in the 17th century and it quickly went viral, then a sugar revolution eclipsed tobacco and up popped refineries in Glasgow, several housing rum distilleries.
But fast-forward a few centuries and is rum in Scotland destined to be forever the bridesmaid to the bride that is gin?
Said Fraser McIlwraith, Director at HOSPO Talent, Dark Art Drinks & Glasgow Cocktail Collective, “Rum has the potential to be as big. I think that one of the reasons that gin did so well is that male and female customers were happy with flavour profiles. Gin and tonic is pretty universal.
“Rum was seen as a masculine drink, but we have seen a change in this perception over the last five years, it’s got more flavoursome. Some great Scottish rums are ripping up the rule book by adding ingredients not traditionally associated with the spirit and this is widening its reach.”
How are sales of rum doing in the bars of some of his clients?
“In the last three months cocktail sales in Scotland’s bars have gone through the roof. My clients can’t believe how many of their customers are ordering cocktails and for efficiency and to keep up with demand, instead of say 20 cocktails on a list, a bar may have only six at the moment.
“Strawberry Daiquiris and Mojitos are two of the biggest hitters. Customers have missed good cocktails and because it’s a limited cocktail list, they are driven to the easy classics.”
Market Data Forecast says that the global rum market is worth $15 billion in 2021 and is set to grow to $21.5 billion by 2026. Statista predicts that in the UK, the rum category as a whole will see volume reach 26.9ML by 2025 with volume growth of 15.8% by 2022.
The number of rum brands in the UK has also gone from 50 in 2009 to over 200 in 2021.
Which rum brands are doing well across the bar across Scotland?
Michael Woods is the owner of St Luke’s and The Winged Ox and The Amsterdam in Glasgow has seen rum sales outstrip gin sales lately across his two venues.
He said, “Bacardi White, Bacardi Gold, and Sailor Jerry are our biggest sellers across both venues and rum sales have actually been slightly better than gin sales lately, despite the hot weather and customers associating gin and tonic with summertime drinking and dark rums with winter generally.”
Meanwhile, over in Edinburgh, it’s homegrown rums that are pretty much unstoppable at the moment – with a mixer and as part of a cocktail.
Said Scott Kirk, manager at Edinburgh’s Nauticus, “Our top-selling rums are all from Scotland. Sweetdram Smoked Spiced rum is Edinburgh-made and our biggest seller. SeaWolf is second. Then it’s J. Gow Rum.
“We’ve also got a cocktail on the menu called Loose Canon that flies out the door and is popular with all ages and both sexes. It’s made of Sweetddram, lime cordial, Bon Accord ginger beer, and Angostura bitters. “
Stuart McPhee owns Aberdeen’s Siberia Bar & Hotel where it’s arguably chillier and where rum is yet to completely shake off its seasonal warming shackles that may stand in the way of it being a summer drink.
He said, “We do a decent volume of our house-pour, Bacardi Spiced. We also do a ludicrous amount of frozen daiquiris using Bacardi Carta Blanca so it’s nothing overly adventurous.
“I don’t sell as much dark month as used to which has more to do with changing demographics towards younger clientele whereas this is traditionally an older person’s drink plus rum is still seasonal – it’s got an ingrained warmth to it.
“Vodka has always been a year-round choice whereas gin was pigeonholed as a spring/summer drink but it’s broken out of that now and so might rum break beyond being a go-to on dark winter nights.
“I’m always being encouraged by reps to move into flavoured rums and I guess this will develop as we expand cocktails.”
Moving further north again, Cru Holdings’ MD Scott Murray, owner of seven Inverness bars, said, “Customers are expanding their repertoires and understanding that there’s a difference between brands and that a rum is not just rum. There’s a drive toward quality and more Cuban rums too.
“Our biggest sellers are Brugal Blanco rum because of all the amount of daiquiris we sell, and Old J Tiki Fire rum because of its strength.”
In the beginning, there was Dark Matter and its Banchory distillery in 2015. This was the first rum to come from Scotland and now it’s in good company.
J. Gow Rum takes its name from the infamous Orkney pirate John Gow. His short, violent career began in Amsterdam in the Netherlands and ended in Orkney. The distillery sits metres away from the sea, on Lamb Holm, a tiny Orkney island, just 0.15 square miles across.
Head Distiller Collin creates a range of rum styles on what may well be one of the smallest rum-producing islands in the world. J. Gow Rum focus on cask-ageing and unique fermentation techniques to produce a range of rums that are full-bodied and decadent. Their range currently consists of Spiced Rum, Fading Light – a chestnut cask-aged rum and their newest release, Revenge – an ex-Bourbon and Virgin Oak cask-aged three-year-old rum.
William Grant & Sons’ Discarded Spirits arm includes Banana Peel Rum. This one embraces sustainability by creating cocktail recipes with ingredients that have been repurposed and is part of the green spirits revolution. It’s a cask-aged rum with the extract of banana peel. Discarded Spirits is also sponsoring the Cocktail Bar/Initiative of the Year at this year’s Scottish Bar & Pub Awards.
Kopparberg, sponsor of Best New Bar and Best and Most Improved Outdoor Area at the awards, recently expanded its spiced rum range with the launch of Dark Fruit Spiced Rum.
The new Dark Fruit Spiced Rum is the second rum from Kopparberg, following the release of Cherry Spiced Rum in June 2020.
Rob Salvesen, head of marketing at Kopparberg, said, “Following the success of our Cherry Spiced Rum launch earlier this year, our new Dark Fruit variant allows existing and new Kopparberg Rum fans to discover a new way to enjoy the bold fruit flavours the brand is famous for.”
Elsewhere on the wider brand front, Pernod Ricard expanded its Havana Club range in the UK this year when it introduced Havana Club Cuban Spiced and hopes that the new product will also attract millennials and ‘Gen Z’ drinkers into the rum category.
It supported the launch with on-trade activity which has included bar takeovers in Glasgow and Edinburgh – as well as consumer-facing social media activity.
Said Ian Peart, commercial director at Pernod Ricard UK, “The launch is well-positioned to capitalise on the growth opportunity in spiced rum, and we will be focusing on educating and inspiring UK bartenders on the liquid’s versatility to establish menu visibility across the on-trade.”
The final mention should go to some of the newest Scottish rums to have entered the market in the last year or so.
Freddy Drucquer, Dougie Jeffries and Chris Dowdall united in their enthusiasm for rum to create Brass Neck Rum, based in Glasgow and develop a recipe for a spiced rum that combines Scottish botanicals like nettle and milk thistle with tonka bean and orange peel. The label features an urban fox, elements of the Glasgow skyline and the Scottish countryside.
Thurso’s North Point Distillery was founded in 2020. It produces small-batch, sustainable Scottish spirits that boast Caribbean-style rum, aged using Scotch Whisky maturation techniques.
Askival Botanical Rum based on the Isle of Rùm. Establishing Eos Distillers Ltd a year ago, Fergus, Josh Kerr and Ali Gray have teamed up with Scottish chef Craig Grozier to bring their product to the market in November 2020. They are importing five-year-old rum from the Caribbean to make the botanical product initially while the business grows to finance its own distillery where it can produce the product from scratch.
Edinburgh’s Harpalion Spirits launched a new rum brand, ‘Cabal’ in May this year, and more than half of the first batch of its first expression No.1513 sold during the pre-order phase.
Livingston-based Matugga Distillers owned and operated by husband-and-wife duo, Paul and Jacine Rutasikwa has unveiled Liv Rum that is ‘inspired by the nation’s love for craft spirits and locally made produce, is handcrafted from start to finish using natural and seasonal ingredients.’
The range includes two white rums and a black spiced rum infused with Scottish heather. The artisan collection also includes. Raspberry and Hibiscus Rum Liqueur, made using seasonal hand-picked raspberries and Honey and Lavender Rum Liqueur created using Scottish honey and locally sourced lavender.
It’s been a while since we profiled your brand reps – aka business development managers and executives etc. to give them a couple of their official titles.
Some might say it’s been too long. So here’s the sixth of our ten, and we enjoyed catching up with them so much and there are so many of you doing a similarly grand job, we’re going to feature reps every month. Get in touch if you want to be included.
Scott Woodhead
Business Development Executive
Distell
West of Scotland
Scott is 25 and from Glasgow and his role with Distell has just changed. He said, “I started as BDE for the on and off-trade a couple of months before Covid hit. I came back from furlough last August with a focus on the on and off-trade but now I’m solely focussed on on-trade for Scotland and direct specialist retail account management.”
But his first job with Distell was in another role entirely. He said, “I started as marketing and comms assistant and that gave me a good grounding in all aspects of marketing and events, I learned a lot about the business and how it operates and gained a great understanding of each of the brands.”
When he came back in August he had a small window of opportunity to get out into the trade before restrictions were tightened once more. He explained, “In the short time I had to spend with owners and licensees, the trade was really struggling with so much uncertainty, followed quickly by the circuit breaker that happened at the start of October.
“But compared to then, there’s a sense of optimism in the air now, although this isn’t shared by every operator in Glasgow for obvious reasons.”
What’s his view on virtual vs. in person? “ I personally much prefer doing tastings in person. You get a better opportunity to read the room, engage people and interact. Although virtual has many plus points, it’s a lot more challenging talking to a screen when you can never be sure of exactly how much attention you’re getting.
Virtual is here to stay and we’re actually streaming a Bunnahabhain live event from our Bunnahabhain Distillery visitor centre to some of the Country’s best whisky bars simultaneously on June 10th for the the first time, subject to restrictions.”
What advice would he pass on to anyone looking to become a brand rep? “Get involved in anything you can working in the drinks industry. Reach out to drinks companies. There are always loads of ways in.
“My colleague started at the distillery as a tour guide and brand ambassador and this gave her the experience she needed to become a brand rep. You must also be, organised, a good communicator, adaptable and be able to build relationships quickly and easily. Oh, and love the sales buzz!”
Super Bock will join the Cellar Trends world beer portfolio from 1st April 2021. It’s been a staple in the Portuguese market since the 1990s and Cellar Trends’ vision is to build upon the existing off trade footprint in the UK and grow the brand in on trade channels utilising a range of SKU formats including draft.
Said Katie Warren, Cellar Trends Marketing Director, “Super Bock is a fantastic addition to the Cellar Trends portfolio, strengthening our presence in the World Beer category alongside Chang beer with whom we have enjoyed working with since 2017. We are absolutely delighted to have the chance to unlock growth for Super Bock by utilising their compelling brand positioning and inspirational communication platforms.”
Ricardo Figueiredo Silva, Commercial Director at Super Bock, added, “Super Bock Group focuses on building true partnerships. We’re proud to enjoy long term commercial partnerships worldwide; something we want to replicate with Cellar Trends. We believe they are the right partner, with the skills to support us in building a strong international expansion strategy of the Super Bock brand.
“The UK is a strategic market for us, having good potential to grow through one of its main communication platform strategies: music. We strongly believe our new partnership with Cellar Trends will allow us to build on the success of the brand to date and to expand our brand throughout the UK.”
William Grant & Sons latest initiative in its #STANDFAST Campaign: ‘Ride to Recovery’ saw three teams from William Grant & Sons UK & Ireland have until Sunday 18th October to cover 1,475 miles in a virtual cycling race. It was final push in 2020 to raise vital funds for The Drinks Trust, The BEN in Scotland and The Restaurants Association Ireland to support hospitality workforce during Covid-19. Throughout 2020, the campaign has raised in excess of £265,000.
The teams were split into Team Scotland, Team Ireland and Team England & Wales with over 57 employees across the company taking part and at the latest update, the teams had raised a total of nearly £5000 and cycled 1,381 between them, with Team Scotland in the lead and we’ll have the final results shortly.
Created to help get bartenders back to work and support the On Trade during the pandemic, the #STANDFAST Campaign has seen William Grant & Sons UK donating to emergency funds via The Drinks Trust and The BEN Scotland, rewarding creativity and passions at home with its Difford’s Guide ‘Bartenders @ Home’ initiative, raising significant additional funds through the Reyka Runners Hospo Half running event, supplying millions of litres of ethanol for hand sanitiser production, and most recently, raising over £100,000 through a virtual auction.
Neil Barker, Managing Director, William Grant & Sons UK & Ireland, commented, “These last seven months have hit the hospitality industry hard. We feel it’s important to continue to support and raise money for the On Trade who have always been such loyal supporters of William Grant & Sons brands.
“As we face new tightening restrictions and possible closures, it’s more important than ever to not let support dwindle as it’s uncertain when these challenges will ease. We are delighted to stand shoulder to shoulder with The Drinks Trust, The BEN in Scotland and The Restaurants Association Ireland to help alleviate hardship. Our #Standfast Ride to Recovery is a fun and physical challenge for our employees where members of the public can follow our teams’ progress and cheer them on for great causes.”
Ian Macleod Distillersis bringing back Langs Jamaican Rumto the UK with the release of Langs Banana Rum. The tropical spirit is the first flavoured rum to feature in the distillers’ portfolio and is the first of a range of flavoured rums that Langs will be releasing in the coming months, along with plans for a phased roll out in the UK on-trade.
Barbara Turing, Innovation Manager at Ian Macleod Distillers, said, “The rum boom continues to grow and is showing no signs of slowing down. Consumers are increasingly seeing rum as a category in which they can find exciting and sophisticated drinking experiences, so we felt this is the right time to revive a brand that fits perfectly with these trends.
“Our rum benefits from the best of both countries; the finest rum from Jamaica infused with natural banana flavour in Scotland. Since we’re all enjoying some late summer sun, it really is the perfect opportunity to enjoy liquid sunshine in a bottle.”
Originally imported in 1861, the initial recipe for Langs Banana Rum was showcased at the Edinburgh international Exhibition in 1886, winning gold.
Neil Boyd, UK Managing Director of Ian Macleod Distillers, said,“At Ian Macleod Distillers, we’re continually looking at trends and listening to our customers and consumers, which is why we’re thrilled to announce the relaunch of Langs Jamaican Rum, a classic from the 1860’s.
“This fresh, disruptive addition to the rum category couldn’t have come at a better time, and we’re confident our customers will be just as excited about this release as we are.”
Almost £35,000 has been raised to support seven of Scotland’s independent whisky bars following an exclusive auction of rare Daftmill Single Malt by online whisky auction specialists, Whisky Auctioneer. Held last Saturday on World Whisky Day (16 May), the auction, which included seven bottles of the highly collectible Daftmill 2008 Single Bourbon Cask #68 and an exclusive tour of this Lowland distillery which is not usually open to the public, reached a grand total hammer price of £35,300.
The seven whisky bars to benefit from a £4,941.53 donation each included The Ardshiel in Campbeltown, Artisan in Wishaw, the Bon Accord in Glasgow, Dornoch Castle Hotel in Dornoch, Fiddlers Inn in Drumnadrochit, The Highlander Inn in Craigellachie and The Malt Room in Inverness.
Whisky lovers from around the globe took part in the auction to be in with the chance of snapping up a bottle of Daftmill Single Malt, in what was the first time it was available for purchase.
Iain McClune, Founder of Whisky Auctioneer said, “The results of this special online auction more than exceeded our expectations, with generous whisky collectors around the world embracing the rare chance to get their hands on this one of a kind Daftmill expression, whilst helping Scotland’s independent whisky bars.
“We’re very proud to do our bit to help some of Scotland’s independent bars with this auction which will hopefully provide them with a boost in what are extraordinarily tough times for the on-trade sector.”
Derek and Fiona Mathers, owners of the Artisan bar in Wishaw, commented, “We are truly stunned at the generous bids that these Daftmill bottles received and are so grateful for the financial help from Whisky Auctioneer at this difficult time.
“Like most bars, we rely on sales from our customers and tourists, but due to current restrictions we have had to cancel 22 whisky functions. We hope that the sector can return to some sort of normality soon, but this generous donation has helped to ease our worries.”
Colin Thompson, Managing Director at Dornoch Castle Hotel added: “We are delighted and amazed at the result of this auction and would like to thank everyone who bid for their efforts and contributions. It’s been a tricky time for our industry, and this initiative has certainly helped us all.”
Initially bottled in partnership between Daftmill Distillery and Berry Bros & Rudd to support the Independent Whisky Bars of Scotland, Cask #68 was sold ‘by the dram’ at their venues in what was described as an industry first. The expression is the first single cask bottling to be released from Daftmill’s 2008 vintage stock.
Whisky Auctioneer’s next online auction will take place this Friday, 22 May 2020, which will include the first 20 bottles of whisky ever to be produced by Aurora Spirit Distillery in Norway – the world’s northernmost distillery.
Registering to bid is easy. No matter what whisky you are looking for, whether an old and rare The Macallan, exciting limited Glenmorangie, vintage The Glenlivet, youthful intense Ardbeg, rich and powerful Lagavulin, aggressive Laphroaig, old and unusual Springbank or rare Glenfiddich, it sells whiskies to suit all tastes. The organisation is always on the lookout for those closed distilleries we all wish still existed; Port Ellen, Rosebank, Dallas Dhu, Imperial and Brora to name a few.
It’s the world’s most popular drink after water and tea. There’s even a crater on the moon named after it. We’re talking about beer of course. Jason Caddy looks at the beer category in Scotland’s on-trade to find out what shape it’s in right now, which brands are up to interesting things, what the future holds, and what licensees in beer pubs predict for this year.
Beer stats for starters
Beer is a serious business in Scotland. You don’t need to be a card-carrying CAMRA member to know that. A report commissioned by the Scottish Beer and Pub Association (BBPA) in December 2018 showed that overall beer and pub activity in Scotland sustains 66,830 jobs and makes a £1.66bn contribution to the Scottish economy. Activity in the brewery element sustains 8,550 jobs, £203 million in wages and 571m in GVA (gross added value). There’s also been an increased level of investment by the industry in Scotland, with £176 million provided in capital investment last year.
An uplift in sales of beer in the UK on-trade has also been reported by the latest Beer Barometer sales data, again from the BBPA. Pubs benefited from a strong end to 2018 with beer sales growing by 2.2% in Q4 2018 compared to the same period in 2017. This was the first time Q4 beer sales grew in the UK on-trade since 2011.
Value is trouncing volume, plus customers seem keen to try new products, according to Gordon Muir, Marketing Controller, Belhaven Brewery. He said, “We continue to see value outstripping volume with drinkers prepared to pay a little more for a better experience. For example, our own Twisted Thistle IPA is growing at 71% year on year, reflecting drinkers looking for great tasting beers with interesting stories to tell and quality service in the pubs. Belhaven’s 300th birthday beer, 1719, is perfectly placed to appeal to these drinkers and we are seeing great results in its first two months.”
Scotland’s brewing industry has, in fact, enjoyed growth since 2010, in spite of beer consumption declining globally. That’s according to research by the Scottish Parliament Information Centre (Spice) which found that there were 115 breweries across Scotland last year – compared with just 35 eight years ago more than four-fifths of businesses in the sector were micro-breweries. The study also found that 30% of all brewing enterprises were in the Highlands and Edinburgh.
The report said, “Globally, beer consumption has been falling for decades. However, this has not dampened the significant brewery start-up rate, responding to consumers choosing to drink more expensive, specialised beers.”
Environmental, Ecological, Ethical
In these enlightened times, environmental, ecological and ethical factors are also influencing brewing. Take the Bute Brew Co for instance. It is making ‘Thorough Bread’, which is made using leftover bread. The 5.1% alcohol craft beer is made from unsold loaves of bread. The leftover bread is used in place of some of the malt that would normally be used in the brewing process.
Mental health awareness has also found its way into beer brands. Neil Leiper and John Kidd are the founders of a non-profit organisation to raise funds for mental health awareness with the launch of a new beer in collaboration with Fierce Brewery, ‘Fitlikey’!
Are students still drinking beer?
Beer has always also been the preserve of students of course, but in light of the fact that figures from a Portman Group survey show that nearly a quarter (24%) of British drinkers have either already switched some of their drinking to low alcohol alternatives or would consider doing so in the next six months, do students still have a healthy thirst for beer?
Dave Whitton is GM At Andrews Student Association said, “We, Northern services, the purchasing consortium that includes Glasgow QMU, St Andrews University Students Association, Glasgow University Union and Dundee University Students’ Association signed a new four-year deal with Molson Coors. Carling and Coors Lite are the two strongest brands across all sites, with Pravha on draught showing significant growth.
“Blue Moon also sells very well. In St Andrews, we have also sponsored both male and female football teams and they’re both happy with the brands we have in stock.
People are drinking less but we are getting more bodies through the door and that is what keeps volumes up. There’s definitely still a pre-gaming culture in the student market so we have to have brands that they want to drink.”
Cellar health
There have also been some quantum leaps in terms of the technology that underpins how beer is stored and served. Food grade gas can deliver a superior product. Air Products offers tank installations available that use remote fill points so that gas can be delivered without the need for on-site staff to accept the delivery and the manual handling of cylinders. This saves time in change-overs, cellar space and providing the peace of mind that a securely monitored system can deliver. The system monitors the gas levels so that you don’t run out, you never pay for gas that you’re not using and that deliveries can be handled seamlessly, through external fill points.
Artificial Intelligence
A company called IntelligenceX has created an AI-brewed beer, for example, where the recipe changes based on customer feedback interpreted by an algorithm. Codes printed on bottles direct people to a Facebook messenger bot, which takes feedback and sends to human brewers, who adapt the recipes accordingly.
Kirin brewery in Japan is using AI right now in fact, to discover optimum-brewing formulas based on 20 years of data that would take a professional human brewer more than a decade to learn.
Beer trends spotted by licensees and their predictions for 2019
Daniel Wylie of Edinburgh’s Brewhemia has noticed a change in customers’ beer drinking habits. He said, “Customers are increasingly keen and willing to try new brands and explore the history and pedigree of the beers – how they are made, where they come from and what makes them unique. We regularly see customers trying selections of beers in flights, making pairings with food and treating beers in the same way that we historically do with wines to accompany elements of the meal. The beer category appeals equally to all types of customers now and this has opened up the selections to all demographics.
As for predictions for 2019, he said, “Growth for the smaller, microbrews. People are trying new and innovative beers and open to more complex flavours. Beer as a pairing with foods and a credible accompaniment to meals – we are increasingly cooking with beer and incorporating it into menus, it makes a fantastic brownie!
In terms of who’s innovating, Petra Wetzel founder of WEST on The Green in Glasgow, said, “Innovation’ is becoming more and more budget orientated with big breweries spending tens of thousands on provocative campaigns using big creative agencies. One activation I admired was the ‘Proper Beer’ campaign that Meantime did last year. They issued thousands of free beer vouchers, anonymously, valid at several of the outlets that sell their beer in London.
She continued, “Once guests redeemed their vouchers and were served their mystery pint they were sent a text message revealing who the brewer was and telling them about the brand and the beer. Anyone can hand out free beer but they sent footfall to their customers and educated people about their product at the same time.”
Meanwhile, Josh Barr, GM of The Bier Halle in Glasgow, talked about who’s doing interesting stuff on social media. He said, “I follow a lot of different breweries on Instagram and Facebook and for me Brooklyn Brewery has been one brand that I’ve fallen in love with over the past few years their social media presence is really accessible and aesthetically pleasing and their recent marketing campaigns have been great fun, such as their huge American school bus fitted out with a bar and tasting room.”
He continued, “I would hope to see sour beers taking more of hold in the category. Brew Dog, Fierce and Magic Rock already have some great ones and Brooklyn Brewery is bringing theirs across to the UK soon too.”
Observing trends among his customer base, Alistair Soutar of The Steam Packet Inn, Newton Stewart, said, “It’s noticeable that beer drinking has increased across all ages and genders through real ale which we specialise in. Specifically, there has been considerable growth in cask/craft ale drinking by women and in the younger age groups.
“Also, there is a general increase in people trying a variety of beers instead of sticking to a particular brand or style. This is especially true of younger drinkers. Stronger beers and different styles are much more popular, to give examples we have brewed an old school mild at 3.5% and a 6.5% modern IPA which both sold well. Customers are also more interested in the story behind the beers and specifically looking for local products.”
And changing trends haven’t escaped the notice of Douglas Ross, owner of the Allanwater Brewhouse in Bridge of Allan. He said, “Having been a publican for over 30 years I have witnessed many changes, some major, over the years. Now is an exciting time for those of us active in the expanding craft beer market. There has never been such a great time to drink craft artisan beer in Scotland with hundreds of breweries and thousands of unique beers available in all styles and characters available on draft, bottle and now cans.
He continued, “However, it is the customers’ awareness now of the natural ingredients that make up beer that is exciting. Their knowledge of hop & malt varieties and their quest for unique local ingredients making locally brewed beers, with provenance, so relevant to today’s knowledgeable beer drinkers.
“This new upsurge of interest has also had an effect in expanding the marketplace with interest from young adult beer enthusiasts and also capturing the imagination of many female drinkers who previously would not try beer.”
Admiral Taverns has been acquired by Tennent’s owner C&C in partnership with Proprium Capital Partners and Admiral’s management team. The value of the deal to buy the company, which has 845 pubs in its estate (mainly in England and Wales), has not been revealed but C&C has revealed it made an equity investment of £37m for 47% of the issued capital with Admiral now be accounted for as an associate of C&C. The remaining equity is provided by Proprium Capital Partners and Admiral management.
The deal will give the brewer a significant slice of the market in England with the investment delivering, say the company, “significant economic and route-to-market benefit to its GB businesses.”
Commenting on the investment, Stephen Glancey, C&C CEO, said, “The local pub remains at the heart of many suburban and city communities – often the hub of local activity and their economic and social contribution is immeasurable. C&C has a long and successful track-record of supplying and providing financial support to local pubs within the independent free-trade in Scotland and Ireland.
“In the UK, the tenanted pub model is a key component of the pub industry. When well invested, and with the right operator and product range, it can provide excellent sustainable returns to all participants.”
He concluded, “For C&C, this is an attractive opportunity to create a new long term investment in the important on-trade channel, without taking significant financial and operational risk. The investment will provide our brands with improved distribution in some of the best community pubs across the UK, with an opportunity to enhance on-trade penetration further over time.”
In Admiral’s latest audited accounts for the 52 weeks ended 28 May 2016, the group had underlying EBITDA of £25.2 million and an underlying EBITDA margin of 36.2%. As at 28 May 2016, the gross assets of the Admiral business were £231.8m and the gross property assets were valued at £244.3m.
The transaction is subject to FCA approval only and is expected to complete by the end of November 2017.
Andrea Pozzi has been appointed Managing Director of Tennent Caledonian Breweries following the news that Alastair Campbell is leaving the business. Campbell, who took over as MD from Brian Calder last summer, leaves C&C next week.
Pozzi who joined C&C in 2010 has had various roles within the group the most recent being Managing Director International EMEA Region and Group Manufacturing Director. He now takes on the role of Managing Director across GB covering both the Tennent’s and C&C Brands Business Units. The decision to combine the Managing Director roles for Tennent’s and C&C Brands follows on from the integration of the respective Finance and Marketing functions over the last year.
The news comes following a raft of new appointments including that of Ewan Robertson to the role of Finance Director following Kenny Barclay’s move to Manorview, while Alan Hay took over as On Trade Sales Director from Matt Munro at the tail end of last year. The management team in Scotland also includes Paul Condron who is Marketing Director and John Gilligan who is Business Development Director.
Andrea commented, “I’m proud to take on the role of Managing Director at Tennent’s – a true Scottish icon since 1556. We’ve put in place a strong management team and a passionate and committed workforce across the Tennent’s business and I look forward to working with everyone to deliver our vision of being the foremost brewer and wholesaler serving the licensed trade in Scotland.”
Campbell was the first non-drinks related MD appointment at the company in more than 40 years and only the fourth person to hold the role since Angus Meldrum retired in October 2001.
Caledonian Brewery steadily releases a seasonal guest ale each month for the on-trade and it’s July and August line-up includes ‘Road to Rio’ a 4% ABV ale.
The beer has been created to feed the excitement of the biggest sporting event of the year, Rio de Janeiro’s Olympic Games.
The limited edition beer is brewed from a mixture of both English and southern hemisphere hops and is a very suitably gold coloured brew with both “soft fruit aromas” and “a generous hint of lemon and a gentle maIt finish.”
Craig Steven, Caledonian’s Beers Manager and Beer Academy Sommelier, says, “We wanted to create an ale that feeds into the excitement of the biggest sporting event of the year. Brewed using hops from England, New Zealand and America, the result is a soft, fruity ale with a punchy citrus finish. Available to the on trade throughout the competition, Road to Rio is the perfect complement to the variety of sport we’ve got ahead of us!”
Diageo has rolled out its latest summer spirits marketing campaign to help licensees tap into the profitable cocktail opportunity. #LetsCocktail is an initiative aimed at helping outlets drive incremental sales over the summer period, and the campaign is supported by cocktail serves, branded barware, PoS and a digital toolkit which provides advice and photo assets for licensees to use on their social channels, enabling them to communicate with customers on a multi-faceted level and entice them into visiting their outlets. Anchored in #LetsCocktail branding, the PoS, jam jar glasses, stirrers and promotional chalk boards all use the hashtag mechanic to encourage consumers to share their cocktail experience through social media.
Faith Holland, Head of On-Trade Category Development, Diageo GB says, “Cocktail penetration has increased by more than a quarter, with spirit penetration up at 69.2%. Our activation will help licensees tap into this lucrative opportunity by demonstrating the importance of delivering not only inspired serves but quality and value for money. By utilising social media channels with #LetsCocktail we’re excited to see how increased social engagement will encourage sales and drive visits into the on-trade.”
The Scottish Bar and Pub Awards has a new sponsor on board in the shape of Disaronno, the famous Italian liqueur distributed in the UK by Wm Grant &Sons. Disaronno, The brand is sponsoring the Cocktail Bar of the Year category with the aim of increasing awareness of Disaronno and the Disaronno Sour and providing the tools to help the trade deliver the perfect Disaronno Sour.
Richard Glover, UK On Trade Sales Manager comments, “I’m delighted to be involved with the Scottish Bar and Pub Awards. We are putting a lot of energy into promoting Disaronno Sour this summer, a refreshing cocktail served in a special Sour Jar with a Disaronno Kick, and the awards provide us with a perfect opportunity to raise awareness of this modern serve.”
He continues, “I’ve been involved in the licensed trade for many years and it will be good to get out and about and see what Scotland’s cocktails bars have to offer.”
Says DRAM Editor, Susan Young, “Those that have enjoyed a drink or two with me know my fondness for Disaronno, and I am absolutely delighted to have the brand on board.”
Charles Wells and Damm have signed an extension to their contract which sees the brewer retain sales and distribution rights for Estrella Damm in the UK for five more years. The brewer has looked after the brand since 2009 and under its guardianship sales have soared 1100% in the UK.
The contract sees Charles Wells, http://www.charleswells.co.uk which owns and brews McEwan’s and Younger’s beers, retain marketing and sales responsibility for Estrella Damm http://www.estrelladamm.com in the UK on an exclusive basis, remaining custodians of the brand, known as ‘the beer of Barcelona.’
Justin Phillimore, Chief Executive of Charles Wells said, “Estrella Damm is a wonderful premium Mediterranean lager rooted in its Barcelona heritage and its light, pilsner style is proving irresistible to a growing consumer base. It drives good cash margin for upmarket outlets and, as the fastest growing premium world lager in the UK, offers compelling profit potential for retailers.
Guillem Castellà Gutzeit, Damm Export Director added, “Although Estrella Damm is the biggest selling beer in Barcelona and one of Spain’s leading lagers it wasn’t well known in the UK when Charles Wells originally started importing the beer in 2009. It’s now showing exceptional growth, with sales rising 69% in the on-trade and 58% in the off-trade and is fast becoming a must stock premium world lager. We look forward to continued growth in partnership with Charles Wells and it’s satisfying to know that so many people in this country are now sharing just a little of our wonderful Mediterranean lifestyle through Estrella Damm.”
“We are very proud that our work has built on the great taste of Estrella Damm to drive growth to its current position” continued Phillimore. “We’ve established a strong and productive partnership with Damm which brings stability and confidence for the future. By committing to a significant joint investment programme over a number of years, we are able to build on the growth already achieved as we aim for the beer to become the leading premium world lager in the UK.”
Mark Aylwin has been appointed Managing Director of Matthew Clark, following Steve Thomson’s decision, after 10 years as CEO, to step down from the role.
The news comes only three months after Conviviality Plc’s acquisition of Matthew Clark.
Mark, who has been in the food and drinks industry for over 35 years, was most recently Managing Director of Booker Retail Partners where he had responsibility for Budgens and Londis. Prior to that Mark was the MD of Booker Direct, the delivered wholesale business of Booker, which included Booker Direct, Chef Direct, Ritter Courivaud and Classic Drinks. Mark was also a member of the Board of Booker Group Plc. He will join Matthew Clark in January 2016.
Meanwhile Ian Smith, Commercial Director at Matthew Clark, has been promoted to Deputy Managing Director, with immediate effect. Ian has been with Matthew Clark for 37 years.
Diana Hunter, Chief Executive Officer of Conviviality Plc, said,“I am delighted to appoint Mark as Managing Director of our Matthew Clark business. He has a wealth of experience in food and drink wholesale and is ideally placed to develop the Matthew Clark business with our customers and suppliers.
“I am pleased with the progress we have made since the acquisition and the integration is ahead of plan. The key hires required to deliver our synergies are in place ahead of plan and all the teams in both businesses are working well together.
“I would also like to thank Steve Thomson for his contribution to Matthew Clark. Over the past 10 years Steve has led the business and has presided over a period of significant growth. Steve was integral throughout the recent acquisition process while also ensuring that customers continued to receive the high level of service that they had come to expect from Matthew Clark. I am delighted that Steve will continue to work with our business on a consultancy basis for a period of time on a number of key projects and wish him well for the future.”
Mark Aylwin, MD of Matthew Clark said, “I am delighted to be joining Conviviality Plc at this exciting time in the Company’s development. Matthew Clark is a great business and I look forward to working with my new colleagues to drive growth, whilst delivering outstanding customer service to the on-trade.”
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