An interesting year for beer
2016 is going to be very exciting year for beer! Lager drinkers are increasingly interested in Ale and there’s been a wonderful influx of new session ales and hoppy lagers in response to this. Session ales, particularly light IPAs, are the perfect alternative to lager for someone looking to try something with a bit more taste. On the flip-side, pale ales and hoppy lagers offer dark ale drinkers something more refreshing to enjoy throughout the evening. Pubs can capitalise on this new passion and interest of ale, and make the most of the higher prices and profit margins that kegged ales can demand, by offering regular guest ales or hosting weekend beer festivals and taking part in brewery led promotions throughout the year. Tara Karimian, Marketing Manager
The biggest UK brewer by market share is Carling owner Molson Coors, accounting for 18.4% of sales last year. AB InBev has 17.8% of the UK market with Heineken claiming 17.1% and Carlsberg 14.8%. Diageo, the owner of Guinness, came in third with 4.8%, ahead of SAB, which had just 3.1%.
82% of beer sold in Britain is brewed here. BPBA
The Brewers Association of Scotland was formed last year. Its founder members included Innis & Gunn, Cairngorm Brewery, Fyne Ales, Harviestoun, Inveralmond Brewery, Stewart Brewing, West and Williams Bros.
25 million beer drinkers maintaining around 700,000 jobs, and generating a retail value of over £18 billion a year, beer in Britain is big business.
According to Euromonitor, over the last five years sales of craft beer have grown by between 14% and 17% every year. In the US, such beers already account for 10% of sales. In the UK, craft beers make up an estimated 5% of sales.
Last year Kopparberg launched a hybrid lager/ale Höga Kusten, the number one Speciality Beer in Sweden, last year in the UK. They described it as a bridge between lager and ale. It is brewed using a unique open vessel brewing technique to create a perfectly crafted combination of one part ale and two parts lager.
Germans drinks more beer than any other nation.
BrewDog is the biggest-selling craft beer brand in Britain (on and off trade), ahead of Samuel Adams and Sierra Nevada.
Belhaven Best is Scotland’s best-selling ale and is produced in Dunbar.
A bar based on good beer will also offer a good welcome, good service and good cheer. Roger Protz
4,000 beer brands are now available in the UK.
William Bros commissioned a comic book which told the 19th century tale that led to Heather Ale.
Most beer is made up of 90% water… brewers call it liquor.
50 of Scotland’s breweries…
Ayr Brewing Company, Alechemy Brewing, The Alpha Project, Andrews Ales, Cumertrees, An Teallach Ale Co, Arran Brewery, Balmaha Brewery, Barney’s Beers, Beath Brewery, Beeches Brewery, Beehive Brae, Belhaven Brewery, Black Isle Brewery Ltd, Black Metal Brewery, Black Wolf Brewery, Born in the Borders Brewery, Bottle Cap Bar and Brewery, BrewDog, Broughton Ales, de Brus, Burnside Brewery, Bute Brewing Company, The Cairngorm Brewery Co Ltd, Caledonian Brewing Co Ltd, Campervan Brewery, Clockwork Beer Co, Colonsay Brewery, Cromarty Brewing Co, Cuillin Brewery, Deeside Brewery, Devon Ales, Drygate Brewery, Eden Brewery St Andrews, Edinbrew, Edinburgh Beer Factory, Elixir Brewery, Ethical Ales, Fallen brewery, Fierce Beer Co., Fintry Brewing Company, Five Kingdoms Brewery, Floodline Brewing Co., Freewheelin’ Brewery, Fyne Ales Brewery, Shop and Bar, Glennfinnan Brewery, The Hanging Bat Brewing Co., Harviestoun Brewery Ltd, Hebridean Brewing Company, Heidrun Brewing Co, Houston Brewery, The Inveralmond Brewery Limited, Innis & Gunn, Islay Ales.
50 more of Scotland’s breweries… JAW Brewery, John O’Groats Brewery, Keith Brewery, Kelburn Brewing Co, Kinneil Brew Hoose, Kirrie Ales, Knops / Archerfield Brewery, Krafty Brew, Lerwick Brewery, Laig Bay Brewing Company, Lawman Brewing Company, Lion’s Lair Brewery, Liquid Brewery, Loch Lomond Brewery, Loch Ness Brewery, Lola Rose Brewery, Luckie Ales, Madcap brewery, Monolith Brewing Co., Moulin Brewery, MòR Brewing, Isle of Mull Brewing Co., Natural Selection Brewing, Oban Bay Brewery, The Old Inn Gairloch, Old Town Brewing Company, Old Worthy, Orkney Brewery, Pilot Brewery, Plockton Brewery, Portpatrick Brewery, Quiet Brewery, Ride Brewing Co, River Leven Ales, Rothes Brewery, St Andrews Brewing Company, Six Degrees North Brewery, The Isle Of Skye Brewing Co Ltd, Speyside Craft Brewery, Spey Valley Brewery, Stewart Brewing, Strathaven Ales, Strathbraan Brewery, Sulwath Brewers Ltd, Swannay Brewery, Tempest Brewing Company, Tennent Caledonian Breweries, Tinpot Brewery, Top Out Brewery, Traquair House Brewery, Tryst Brewery, Andrew Usher & Co., Valhalla Brewery, Valve Brewing, West Brewery, Williams Brothers, Windswept Brewing Co, Wooha Brewery.
The Boston Beer Company is the biggest craft brewer in the US – its beers include Samuel Adams, and the company was set up in 1985.
20m Pints of beer are enjoyed every day in Britain – that would equate to approx 2m in Scotland…
There are more breweries per head of population in the UK than any other country in the world.
Brewers are also doing their bit for climate change. 2014 saw brewers’ efficiency rise by 1.2%, an overall improvement of 11.6 per cent from 2008, whilst carbon emissions fell by 1.2% and water efficiency rose 6%; a 39% increase in efficiency since 1990.
BREWMEISTER, based in Keith, Banffshire, has had its Snake Venom beer verified by Trading Standards as the world’s strongest. 67.5% ABV – and Trading Standards tests have now not only verified that claim but found it’s even a touch stronger at 68%. It comes in at a whopping £50 for 275ml bottle. However the world’s strongest naturally fermented beer is Sam Adams Utopias at 29% ABV.
30% of Brits who buy alcoholic drinks say they don’t understand what the term ‘craft’ means. Mintel.
IPA stands for India Pale Ale which were introduced in the 19th century.
Just one in four (24%) beer buyers are willing to spend over £4 on a pint of craft beer in the on-trade and 21% are unprepared to even go above £3 per pint. On the other hand, there are a small number of consumers who clearly have strong beliefs in craft credentials as 5% of beer buyers are prepared to exceed £5 on a pint of craft beer.
There are now more than 1,400 breweries in the UK producing around 8,000 regular beers and thousands more seasonal and one-off beers.
So although crafts are still relatively small beer, constituting only 2.5 per cent of total beer sales in America, however craft beer now represents more than 10 per cent of beer sales.
Ale is oldest style of beer in the world . In 4000 BC in the middle east people were fermenting a form of bread to make a fermented pulp which had an intoxicating effect – a “divine drink”.
The Egyptians were also keen brewers and beer and malt has been found buried in the tombs of the Pharoahs to provide sustenance for the afterlife.
Glass shape affects the head retention of the beer, with glasses tapering inwards being preferred for foamy beers. This tapering effect also helps the beer’s aromas to arrive at your all important nose to best effect, so hoppy beers benefit from such glasses. Some brewers have gone a step further and provide badged glasses with a logo etched into the base which generates a steady stream of attractive bubbles to enhance the appearance of the beer even more. For lighter beers, which need serving cooler, the weight of glass is also vital if the beer is to stay cool in warmer weather. Many purists therefore use heavier glass, which in summer can even be stored in the fridge!
According to Mintel 38% of Brits bought a craft alcoholic drink brand in the three months to November 2015.
A survey of SIBA members (the Society of Independent Brewers ) showed that Average beer strength is 4.1% ABV Golden ales are the most produced beer style – 92% of respondents brew at least one, followed by traditional bitter – 81% .
Craft is the word of the moment – whether you are talking about craft beer or spirits, but let’s not forget the impact of mainstream brands which are the mainstay of Scotland’s pub trade. Susan Young takes a look at what’s happening in the beer category.
Beer sales are finally increasing. After nearly a decade of decline last month the British Beer and Pub Association revealed that beer has recovered market share for the first time since 2006, extending its lead over wine. This increased interest in beer can be partly attributed to craft. But in my view it’s not just about the brew, but about the fact that this resurgence has been partly created because licensees have been creating great craft beer pubs and consumers have a taste for them.
All beer needs is a route to market and by opening craft beer bars licensees have been effectively providing this – they have created the opportunity for people to try a variety of beers. After all, the pub remains the best place to try out new brews. You might argue that if craft beer had not taken off there would be no craft beer pubs… but what came first?
The craft revolution started in the States in the 1980’s when a group of local brewers got together with microbrewers and started what is now recognised as a revolution in beer. This new movement challenged the likes of big brand owners like Budweiser and Miller, with the creation of brands such as Samuel Adams. Today there are more than 2,700 craft breweries in the US and this number is expected to grown to some 4,000 over the next few years. One of the pioneers of the movement was in fact an American called Jack McAuliffe, a submariner who served in Scotland, and while he was here he actually got a taste for cask ale. So Scotland did have its role to play in the craft revolution. Today brands from America vie for shelf space with beer from Germany, England as well as Scotland.
BrewDog, which started off life as a brewer, but has now grown into a fully-fledged pub co, must be due a lot of the credit. They have persuaded investors over the years to put up some £7m, and now not only brew beer in their own brewery but have BrewDog pubs all over the world.
In Scotland they have pubs in Edinburgh, Glasgow and Aberdeen. Now I know they will hate me for saying this because they eschew big mainstream brewers, but they are actually following a tried and tested route to market…Belhaven has its own pub estate, Heineken and Star Pubs and Bars, and Maclays was originally a brewer before venturing into pubs (now of course in administration). While Tennents may not have a pub estate now… they do have a share in a craft brewery, Drygate.
However despite the new trendy craft beer bars, there are still a host of pubs including the likes of Blackfriar’s and The Three Judges in Glasgow and Diggers and The Bow Bar in Edinburgh who have long championed independent brewers and served up interesting and tasty beers to a loyal fan base. In fact there are dozens of pubs all over the country who do this, but it took the boys at BrewDog to give it some cool credentials. It is a bit ironic though… in years gone back when you thought of cask beer you would think of beards and beer bellies… now when you think about craft… funnily enough beards come to mind too minus the bellies! But with lots of skinny jeans and tweed! Of course while cask was very much about sessionable ales, today craft is about artisan beers whether they be ales or lagers and they range from Czech-style pilsners to India pale ales (IPAs) and now there’s the low alcohol offering too. But what licensees are looking for is a range that sets them apart from their neighbours.
There are now more than 80 independent breweries in Scotland alone producing in excess of 300 beers, the rise has been attributed in many cases to the fact that when Gordon Brown was Chancellor of the Exchequer in 2002, he introduced Progressive Beer Duty, which gave tax breaks to brewers below a certain size as a result the number of small brewers in the UK began to grow and continues to grow. From St Andrews’s Eden Ale to Fyne Ales and Jaw Brew on the West Coast, Barneys Beer to Black Isle… the list really is endless, and it is not surprising that licensees are spoilt for choice. However according to the experts while there is some great craft beer out there, there is also some pretty dire brews too which lack taste consistency. The other issue is that some craft beers bars simply do not get the throughput to keep the beer fresh, and this is where no doubt the large suppliers win… they can keep a great range of bottled beers for enterprising licensees to choose from but also often sell cask in various sizes.
Belhaven, owned by Greene King, may be regarded as one of the big brewers but when it came to offering diversity in the beer market they were the first Scottish brewer to in fact embrace craft beer. Around 14 years ago they set up a niche brands division called 1719, (the year in which the brewery was founded) and under the guidance of Tom Cullen, and with a lovely Swedish girl Joanna Svenson as the face of the division it brought to the Scottish on trade market the likes of Peroni, Cruzcampo, Erdinger and Wiehenstephan. Says Tom Cullen, “Back then pubs in Scotland did have a limited choice mostly available from the big boys. However people were starting to travel more, and the retail market place had started to change with a number of new, young and creative operators arriving on the scene. We initially had a portfolio of 12 beers – including aspirational brands like Peroni. In fact I remember the headlines when it went on sale as Scotland’s first £5 pint. At the same time there was also a step change in the retail trade – with pub owners wanting to be one step ahead and wanting to offer their customers something different.”
Tom now works for Dunns who (following its Dameck acquisition) have more than 1,200 beers on offer. With such a lot of on offer how can licensees make a informed choice on what to stock? Says Tom, “You have to make sure you fit the beer to the venue. This means looking at the age profile of customers, the demographics and the food offering. That will dictate what the pub should offer.”
He adds, “The Glasgow and Edinburgh markets are quite different. Glasgow is still very price conscious however the most popular category is Scottish beers particularly the smaller breweries such as Cromarty, Fallen, Stewart, 6 Degrees North and Black Isle. These are followed by English beers, German and then American beers. In Edinburgh licensees are not so worried about the price, because they know they can sell it at a premium. Licensees in Edinburgh are more diverse in their choice of beers stocking more English beers, followed by American beers with Scottish beers probably in third position.”
Of course craft beers from the continent are also showing good growth rates. Alhambra is regarded as the leading craft brewery in Spain. It is at the vanguard of innovation when it comes to beer styles and modern brewing technology. As a symbol of excellence Alhambra has experienced good growth in the UK beer market over the past few years.
Italy technically speaking doesn’t have craft beers – this is because in Italy, fines are imposed on those who write ‘craft’ on the label; but of course all standard non-filtered, unpasturised beer from Italy would be considered craft and with 700 microbreweries in Italy there’s lots available. Del Borgo’s ReAle and its Trentatre Ambrata, or Morgana – are American-style beers, while you can also find Italian brewers including local ingredients to give their brews a point of difference. For instance Genova “lager” is flavoured with basil. In fact the first Italian craft beer bar has just opened in Chiswick – The Italian Job. It offers says the company a beer range which draws from Italy’s eclectic craft beer scene, and showcases a variety of styles and provenances, and is complemented by a food offer that spans from Italian street-food to hamburgers.
Says Tom Cullen, food and beer matching is important when it comes to selecting the right beers for your pub, “If you are a meat and burger operation of course you are going to offer a good selection of American beers, while if seafood is more our speciality you can have more of an ecletic offering. You should approach your beer list with the same thought and diligence you would a wine list.”
Edinburgh also leads the way when it comes to craft beer bars – FullerThomson were one of the first pub groups to embrace the concept with bars such as Holyrood 9A which offers more than 20 beers on tap, to the Red Squirrel and the new Ox 184. While in the last two years bars such as Jeremiah’s Tap Room, the Hanging Bat and Ushers have opened. In Glasgow, Munro’s and Drygate are two of the most notable alongside Inndeep, while the Tippling House and CASC has put craft in Aberdeen on the agenda, but lots of other independent bar owners have embraced craft by offering a wide selection of beers.
Belhaven has a wide range of craft beer from around the world, but it has its own craft range too which was launched last year which has a contemporary feel. Says Gordon Muir, “The craft range is selling well, with Twisted Thistle IPA and Craft Pilsner the leading sellers in Scottish on-trade. We’re delighted that we’re seeing good sales in “regular pubs” as well as specialist craft outlets, both across the packaged range and in keg.” He added, “We’re also seeing tremendous growth for these beers in craft markets overseas, notably the USA and Sweden which are both flying with our craft range, with Twisted Thistle IPA again the lead performer.”
Molson Coors have Franciscan Well craft beer and Sharp’s Brewery brand Doom Bar, and were one of the first mainstream brewers to mark really get behind craft in recent years hardly surprising when you consider the company, despite being Canadian, is one of the biggest brewers in the US. They brought Blue Moon to the market here too which was one of the first craft-style brands to appear on draught.
Heineken own the Caledonian Brewery and it has long had an excellent reputation for producing brews such as Deuchars IPA. But it’s latest offering is a lager, the first from the brewery, called Three Hop. They say it has been inspired by the lager traditions of Germany, the Czech Republic and France and it is being rolled out nationally. Says Andrew Turner, Category & Trade Marketing Director at Heineken, “Can you take a Scottish brand out of Scotland? Yes. We have already got Three Hop in 200 pubs in England and we expect that number to grow.”
However while craft creates a lot of interest and certainly stats show a massive growth rate of around 80%, you have to take into account this is from a small base and craft beer sales still account for less than 2% of current beer volumes. Sales are worth in the region of £225m according to CGA.
In Scotland, as you all know, its Tennent’s that is the biggest brand with a share of around 40% of the market.
Lawson Mountstevens, Managing Director, On-trade at Heineken told DRAM, “Scotland is quite a different market to the rest of the UK. It’s unique because of the strength of Tennent’s. Despite the fact that we are an international brewer we only have 13/14% share of the market in Scotland and that is a challenge. Obviously Scotland is one of our key markets and we are committed to putting people through the door and obviously our aspiration is to have a great share of the market moving forward.”
Molson Coors have had success in the market over the last few years, and in fact 2014 saw the company move into second position behind Tennent’s. Scottish boss Hugo Mills puts this down to forging a successful partnership with Matthew Clark and its ongoing relationship with Belhaven. He told DRAM, “To me Belhaven is best in class. They are a well-engineered business and they have faith in Carling. We now have two businesses supporting us and who are helping us take our brands to the competition.” He continues, “2015 is a significant year for Molson Coors in Scotland as we put our ambitious plans into action to grow the scale and strength of our business and brands in the Scottish trade.”
It’s also an important year for Tennent’s, now WallacesTCB, with new boss Brian Calder, confident that they too are not just pushing forward with Tennent’s but taking advantage of craft beer popularity too.
He says, “It’s been an exciting few months for WTCB. With progress being made across all areas of the business, we have a positive outlook going forward. We’ve strengthened our core beer offering with three exciting additions to the Tennent’s range – Black T, our premium offering was launched in October 2014 and is going from strength to strength. We launched low and no ABV options in the form of Lemon T and Hee-Haw!, which have also been successful since launch. Our ongoing relationship with Drygate has allowed us to become involved with craft beer, a market we haven’t engaged much with previously, which brings us closer to our ultimate goal of being a true one stop shop for the licensed trade.
“Other than ranging, we’ve been heavily involved in the debate surrounding tied pubs legislation, which we feel places real restrictions on both Scottish brands and publicans alike. Forcing tenants to buy stock at a price which is barely viable from a restricted range is hurting Scottish Pubs and simultaneously puts producers, including wonderful craft brewers, at a disadvantage, as the number of operators they can sell to is severely limited. We will continue to call for government action on this issue as we hope to bring Scottish legislation into line with that of English and Welsh systems. Once this change takes place, those operating in the Scottish market will see a positive change in their business.”
However no beer article would be complete without paying attention to low-alcohol beers and no-alcohol beers. There is a real opportunity here for licensees to provide their customers with a refreshing drink that will keep them under the new drink-driving limit. Certainly I think that generally suburban licensees have been quicker on the uptake when it comes to stocking up on these. With city centre outlets being a bit slower off the mark. Recently I was in a well known West End bar where two girls sat down and asked for a non-alcoholic beer. The bartender admitted they had none and guided the girls to two non-alcoholic cocktails instead. While an Italian restaurant close to my own office also doesn’t offer any non-alcoholic beers. However, says Tom Cullen of Dunns, “We have been inundated with people interested in stocking these beers. We currently have a range of twelve and are looking to have a draught non-alcoholic beer to offer soon.”
Some beer commentators have called it a ‘golden age’ for beers. They wouldn’t be wrong and with the Chancellor taking another 1p off the price of a pint, it looks like this trend is set to roll.
Whether you’re an avid fan of football or simply can’t stand the sight of it, there will be no getting away from the beautiful game come June 12th, when the 2014 World Cup kicks off in Brazil. Jamie Allan reports.
Licensees can expect to see a spike in beer sales during June and July, as live football and beer have long been established in the public’s imagination as an old married couple, paired together for longer than anyone can remember and unquestionably inseparable. DRAM takes a look at the upcoming World Cup, before focusing on the recent boom in both the world and craft beer categories.
The volume of world beers now available to Scottish bars is astonishing; Inverarity Morton stock in excess of 50, Dunn’s have approximately 70 available at any one time, speciality supplier Dameck carries just under 1000 world beers and online wholesaler Beers of Europe can despatch up to 1600 brands to your bar’s doorstep at the touch of a button.
That so many beers are now readily available in the Scottish on-trade demonstrates the growth of the world beer category in recent years. Ian Risby, Divisional Manager of the McEwan’s Beer Company, told DRAM that the continuing success of world beers in the on-trade presents an excellent opportunity for licensees to boost sales and increase profit margins. He said, “World and specialist lager continues to be a star performer in Scotland and the category is now worth £101million with sales up 6%, with the share of the On Trade beer market at 11.8%. With more choice available, consumers have become increasingly discerning and we are seeing a shift in habits with lager drinkers moving away from the mainstream in search of more premium beers which have authenticity, character and essentially offer a better experience.”
Faced with such a wide choice, the difficulty for licensees can be in deciding which beers are right for their bars. International brands such as Sol, Corona and Peroni for example are now fairly established in the Scottish on trade, providing high-volume sales and a healthy profit margin. The risk lies in ordering in products unfamiliar to the bar’s clientele that may ultimately sit gathering dust on the shelves. Furthermore, many beers from countries such as Belgium and the US can be prohibitively expensive and difficult to retail without taking a hit on the GP, leaving the bar operator to decide whether the attraction and talking point that a large beer selection brings is worth the reduced margins that follow.
One thing licensees can be sure of during the tournament is increased footfall. In their FIFA World Cup Hints and Tips brochure, official sponsor Budweiser states that 75% of the UK adult population will watch the 2014 tournament, 34% of whom don’t usually watch football at all. These figures will vary for Scotland of course – it’s been 16 long years since the The Tartan Army last had their hearts collectively broken in a major international tournament – but the opportunity remains for licensees to capitalise on the public’s heightened interest in watching live football that comes with the World Cup.
Hugo Mills, Molson Coors’ Sales and Operations Director for Scotland, told DRAM that his company is primed and ready to support their on-trade customers in making the most of the tournament. He said, “The World Cup draws a wider range of beer drinkers into pubs and bars. Publicans need to think ahead and ensure that they are providing a range of products that will bring these sporting events to life this summer. We’ll be providing business builder kits that include replica football shirts, our glassware pack and point of sale materials will also help customers bring the excitement of the World Cup to life.”
Heineken is also well placed when it comes to its range of beers on offer during this period, Says John Gemmell, Trading Director, Scotland, Heineken, “With 32 competing countries and 64 matches, the FIFA World Cup offers an array of opportunities to trial and promote world beers and mainstream lagers that originate from countries that are vying for the prestigious trophy. Why not promote or give increased fridge or counter space to a world beer per match? For example, your ‘Beer of the Day’ could be Heineken on Holland match days or you could make Sol – currently growing by 60% in Scotland– your focus around Mexico’s fixtures.
Other world beers that could feature include Amstel from the Netherlands, Birra Moretti from Italy, Sagres from Portugal and Affligem from Belgium, but remember established brands like Kronenbourg 1664 (France), Foster’s (Australia) and of course John Smith’s from England can also complement this style of promotion or themed evening.”
John Gemmell, “To make the most of the increased footfall that the matches will generate, licensees need to look at ways to keep punters in their bar after the game. Research shows that 55% of World Cup watchers in pubs are more likely to stay on after a match if there are special offers on food and drink and 40% would stay on if an outlet had live music.”
With the international make-up of the World Cup the opportunity is there to take advantage in the recent upsurge of interest in the world beer category, with licensees more likely to stock brands from countries participating in the tournament. So with a potential choice of 1600 beers, which brands should your bar stock?
With the tournament being hosted by Brazil this year Brahma would appear an obvious choice. InBev recently released a limited edition of the beer made from barley grown on one of Brazil’s famous football pitches – tenuous maybe, but about as close as Brahma can get to associating itself with the World Cup without infringing on the legal rights of official sponsor (and fellow InBev brand) Budweiser.
Quilmes should be a popular choice with Argentina tipped to go far in the tournament. Spain and Germany are also among the favourites, so stocking brands such as Estrella Damm and Furstenberg should at least guarantee you a couple of weeks worth of sales at least. Ian points at the growth of Spanish beer Estrella Damm as an obvious success story within the world beers category. He told us, “Estrella Damm is the fastest growing world lager in Scotland with sales nearly five times bigger than last year, and accounts for a third of the category growth. We expect to see Estrella continuing to grow over the summer as we have just launched a brand new TV advertising and social media campaign to introduce even more consumers to the beer.”
You can encourage your regulars to cheer on the Azzuri with a Birra Moretti or Peroni, or raise a glass of Stella Artois or Heverlee to the hipster’s favourites Belgium. Of the tournament outsiders Australia usually draw a decent support in Scotland, so stocking Cooper’s Pale Ale could prove beneficial. If you’re looking for a more obscure talking point on your back bar then South Korea’s Hite could do the job, though with group rival Russia favourite to progress then Baltika may prove a more viable alternative. The newly launched Desperados Verde, of French origin but with a Mexican twist, can be enjoyed by beer drinkers looking to straddle the fence before declaring an allegiance. Regardless of the beer that you stock or the team you choose to support, the World Cup is guaranteed to provide a big boost to business.
In spite of the hype surrounding world beers it remains important for operators not to forget the importance of offering a broad selection of products. Paul Condron, Marketing Director for Tennent Caledonian, told DRAM, “World and craft beers now account for almost half of total premium lager serves in the On Trade and the number of taps given over to world beers is also increasing within licensed premises. Draft world lager can add around £17,000 to the average outlet’s revenue per year which is an attractive prospect for license holders.
However, says Paul, “While it is important for licensees to keep pace with trends and respond to evolving consumer tastes, it’s all about striking the right balance with their offering. A range focused entirely on world beers or even entirely on local beers would limit success, but the right mix of leading local draught brands and carefully selected world beers is likely to have greatest appeal to consumers.”
Munro’s in Glasgow opened its doors just over a year ago, and has enjoyed considerable success as a quality craft beer destination. Yet General Manager Joseph Lilley told DRAM that the venue hasn’t turned its back on more traditional beer and lager drinkers. He said, “We try and keep a broad range of bottled world beers, from Peroni to Brewdog’s Punk IPA to Weihenstephan, featuring familiar names alongside smaller craft brews and more obscure world beers. It can be quite intimidating to walk into a bar and not recognise any of the beers on the guests board or back bar, and we’re not in the business of alienating people. As much as we like to encourage our customers to experiment with their beers of choice, others tend to know what they want and stick to it – we’re happy to cater to both.”
Gary Lawson from Branded Drinks looks after German pilsners Furstenberg and Riegler, as well as wheat beer Weihenstephan, and is keen to emphasise the importance of the perfect serve when it comes to selling world beers in the on-trade. Gary has been heavily involved in the category since introducing Krusovice to the Scottish market in 1999, and knows the value of a beer’s presentation. He told us, “The key to selling world beers in bars in getting the serve right. The absolute minimum requirement is that the beer is served in the correct glassware. People drink with their eyes, and if their pint doesn’t look ‘right’ then they’re much less likely to order a second. If they are willing to spend the extra cash on a better quality product then they deserve to have it served correctly. Sometimes it feels like half of my job is travelling around delivering new glassware to bars, but it’s worth it.”
Glassware has proven a thorny issue for operators of speciality beer bars. While larger brewers and independent domestic breweries generally provide their glassware free of charge, smaller, international brands often apply a fee per glass. It’s not unusual to have to pay between £2-3 for a speciality Belgian, German or American glass, and the costs can quickly add up; licensees are all too familiar with their customer’s propensity for stuffing ‘exotic’ glassware into their jackets or handbags, and some have started asking for a small deposit before the glass makes its way over the bar.
An extreme example is the glassware for Kwak, a Belgian brown ale. Shaped like an oversized test tube and paired with a separate wooden handle, the glass sets licensees back £15 per item. Some bar owners in Belgian have been known to demand that their customers leave a shoe behind the bar to ensure the glass is safely returned. Although it remains to be seen whether Scottish licensees will be willing to take such a step, it would at least provide a memorable talking point for their customers.
The rise of the craft beer movement in Scotland has mirrored the category’s success in the United States, albeit on a smaller scale, and the number of independent Scottish brewers that have flourished in recent years is testament to the level of consumer interest in distinctive, full-flavoured beers. Producers such as the Williams Brothers and BrewDog helped blaze a trail for other beer enthusiasts to follow, and there are now an estimated 55 independent brewers in Scotland.
Windswept Brewing Co. on the shores of the Moray Firth serves as a great example of the success of Scottish craft beer; the brewery’s marketing manager Julie Smith told DRAM that despite being founded only 18 months ago they are currently two years ahead of their business plan. Windswept have four core beers in their range, and are set to launch a fifth at the beginning of June. Julie wasn’t giving much away about the new brew, beyond saying that it will be the second in the brewery’s single hop range beside their Tornado IPA.
At the forefront of the Scottish craft movement was Innis & Gunn, who formed in 2003. CEO Dougal Sharp about his business’ beginnings, and asked for his thoughts on the future of craft beer in Scotland.
Dougal told us, “When we launched there was no such thing as craft beer in Scotland, nobody was making interesting beers in 330ml bottles until we broke the mould. I don’t know how to define craft, and we’re not wasting a minute worrying about it. We’re a non-mainstream beer producer, not everyone will like our product and we’re OK with that. Good beer is the next big thing, it’s not about styles or categories. Anyone who’s making flavoursome beer will be successful – craft beer is here to stay. I can’t imagine a scenario where people get bored of interesting, big-flavoured beers and return to drinking standard products.”
For Ian Risby, the term ‘craft’ doesn’t necessarily mean that the beer is produced by a small brewery. He explained, “For me, using the term ‘craft’ to describe our beers means there must be something distinctively unconventional in the taste profile, ingredients or the brewing process. Although we are a large brewer, experimental and progressive brewing is a big part of what we do.”
Another independent Scottish brewer experimenting with something a little different is Six° North in Stonehaven, who have embraced Belgian brewing traditions in the production of their artisan beers. The brewery also recently opened a bar in Aberdeen’s city centre, offering 24 draught products and up to 365 Belgian craft beers. Sales and Marketing Director Phil Scott told us that craft beer has really taken off in the city. He said, “To use a phrase that’s been coined lately, we’re part of ‘The Craft Beer Quartet’ in Aberdeen. Between ourselves, Brewdog, Moorings and Casc the selection of quality beers now available in the city is unprecedented. I think the dilution of larger chains and the emergence of independent operators has been hugely beneficial to Aberdeen’s bar scene, and really capitalises on the niche market for particular products. Our customers want to enjoy quality products in a pleasant drinking environment, as opposed to a chain pub or nightclub for example.”
This view is echoed by Richard McLelland, Director of Williams Bros Brewing Co. who own The Vintage in Leith and Inn Deep in Glasgow. Richard doesn’t anticipate his customers appetite for craft beers dwindling any time soon. He told us, “It’s all part of a life cycle. In the 80s consumers began to take an interest in wine, in its provenance and how it pairs up with food. The 90s saw a renewed interest in cocktails, and the 00s brought great success for both major and boutique spirit brands. It’s beer’s time in the sun now, and it’s been greatly influenced by the American craft beer movement. The market’s nowhere near saturation point, it’s still growing and evolving. We’re seeing larger operators getting involved now; people can claim that they’re simply jumping on the bandwagon, but if they have something different to offer the category then it should be welcomed.”
There are few better examples of larger operators embracing the craft movement than the C&C Group linking up with the Williams Brothers, forming The Drygate Brewing Company on the grounds of Tennent’s Wellpark Brewery in Glasgow. As well as a microbrewery there is also a restaurant, bar and function suite, and Richard hopes that the business’ success will lead to more bars brewing their own beer on-site.
Another example is Charles Wells, who are seeking to reinvigorate the McEwan’s brand while also launching other craft ale variants into the market. Ian Risby told us, “The revival of McEwan’s has really gained momentum since then as we continue to shake off the brand’s tired image and bring it firmly into the 21st century. We have three new cask beers – IPA, Amber and Signature – which have just launched under the McEwan’s name. These new brand variants have a modern, artisan look and we’re just about to bring bottled versions to the on-trade to build on the soaring popularity of premium branded ales with younger beer drinkers.”
Belhaven are another large brewer seeking to reinvigorate their products, and like McEwan’s they have recently rebranded their craft beer range. Featuring Oak-Aged Blonde Ale, Twisted Thistle and Scottish Oat Stout amongst others, the beers’ packaging features hand-drawn images on the label and a strong emphasis on their Scottish origin, ticking both the ‘artisan’ and ‘provenance’ boxes so inherently associated with craft beer.
Says Gordon Muir, Marketing Manager at Belhaven, “Belhaven is a proudly Scottish brewery. In fact we are Scotland’s oldest brewery. We needed our rebrand to reflect this. Yet the rise of craft beer is an opportunity for breweries like us – who have been in business since 1719 – to reach a new, younger drinker. So, it was essential that this brand had a contemporary feel, and avoided the easy clichés of Scottishness.”
The recent rise of craft beers is often attributed to the success of American craft brewers, credited with beginning the ‘craft beer revolution’, a ubiquitous phrase used by brewers, licensees and journalists alike when discussing craft beers. Independent brewers such as Flying Dog, Sierra Nevada and Brooklyn have all successfully imported their products to the Scottish market. Samuel Adams remains the number one selling craft beer in the States, and currently enjoys a great deal of popularity in Scotland’s bars, both in bottles and draught. David O’Neill, Account Manager for Shepard Neame, told us, “In the last 12 months, Samuel Adams has grown 174% in Scotland and the schooner (2/3 pint) glass has proven to be an effective unique selling point. We adopt a “right brand – right bar” philosophy and will continue to support outlets passionate about the brand.”
The use of the schooner glass has been an important feature of the craft beer serve. Imported American draught products like Samuel Adams can be expensive, and the smaller glassware allows the beer’s consumers the chance to sample the product without committing to a £6 pint. Beer flights are also increasingly popular, providing three to five small ‘taster’ glasses of a craft beer bar’s keg or cask selection. In allowing consumers to try before they buy, so to speak, increasing numbers of people will be introduced to craft beer, and the continued growth of independent breweries provides a steady stream of new and distinctive brews to sample. The ‘craft beer revolution’ shows no signs of abating.