6 The Publican

by Chris McBeath | photos courtesy of BrewDog

InnovatIvE IDEaS FoR DIFFIcult tIMESPuB tREnDS In tHE uK

6 The Publican

7 The Publican

Pubs around the world - from Irish bars, to ale houses, and taverns - find the “olde British pub” an ongoing source for inspiration in décor, ambiance, and hospitality.

But today, the UK's pub scene is in crisis: publicans are weathering an "iffy" recessional recovery, navigating strict drinking-driving laws, and trying to manage a rigid no-smoking policy. They are also competing against supermarkets selling alcohol at significantly lower prices, and feeling the impact of an overall social shift where many people prefer to drink at home. Consequently, Britain's pubs are reaching their demise in unsettling numbers. In the past three decades, more than 19,000 have closed down. And when MPs voted to sever the centuries-old practice of “tied houses” last November, affecting nearly 50% of the roughly 50,000 pubs in Britain, the promise of cheaper beer may come at the price of even fewer pubs (see sidebar).

Ideas for Survival Against these beleaguering odds, British pubs possess an indomitable spirit for survival. “Pubs in Britain (no matter how good they are) have had a tough time during these lean economic times, but things are beginning to look up,” says Fiona Stapley, long-time editor and publisher of The Good Pub Guide. “Two years ago, around 58 places a week were closing; this has now dropped to around 26 - and of these 26, many will re-open

Demand for taste intensity, regional production and artisan ethics, particularly with the younger crowd, continues to grow.

again under enthusiastic new management and with a big refurbishment.

“Nowadays, publicans need to work twice as hard and come up with all sorts of incentives,” she emphasizes, noting ideas such as: value two-course lunches; themed-food evenings; tutorials from a local wine merchant or brewer;

quiz, music, and comedy nights; and even a Sunday afternoon cinema. Stapley adds, “Quite a few pubs also run the village post office or shop, have opened up a delicatessen and sell their own or local produce, hold weekend farmers’ markets in the car park, have an art gallery upstairs - and even a hairdresser!”

8 The Publican

Key TrendsIn addition to creative décor, publicans must constantly look for new ways to keep their house relevant and at the centre of the community. Marketing intelligence company Key Note reports gastro-pub fare and value-oriented pub-grub continue to be major consumer draws. Craft beer is bigger than ever with artisan endeavours going well beyond the hop. Cocktails are broadening their reach with carbonated and bottled products as well as adding alcoholic variations to England’s quintessential cuppa, and liqueurs are on the edge of a comeback.

The Crafting Evolution of BeerAlthough the mainstream beer market has been in decline for the past six years, craft beers are bucking that trend. Demand for taste intensity, regional production and artisan ethics, particularly with the younger crowd, continues to grow. These products command premium prices. Put cans into the equation - Wetherspoons has been first to stock Sixpoint cans in all 900 of their bars - and craft beer sales are set to soar.

Bold branding initiatives saw BrewDog thrive through the recession.

Renaissance or collapseThe practice of 'tied houses' is when pubs are bound to the breweries that supply them beer. For the consumer, the cost of a pint can be up to 70p (CDN$1.25) more expensive that one sold at a Free House, and the overall selection is limited. For the publican, it’s chiefly about economics:the tied structure usually comes with subsidized overheads including: reduced rent to the pub company landlord; reduced building insurance; and no or low-cost benefits like satellite TV. In return, they commit to only buy beer from their owner, often at above-market prices. The lobby group Campaign for Real Ale (CAMRA) considers the change a victory for pub landlords in tied systems. The British Beer & Pub Association say the changes to a system that ‘has served Britain’s unique pub industry well for nearly 400 years’ would result in 1,400 more pubs closing with 7,000 job losses.

9 The Publican

Urban microbreweries that offer pairings and a knowledgeable staff remain a tour de force and are starting to morph into novel beer and pizza joints, and fish ‘n chip and beer bars. Meanwhile micropubs, some no larger than a living room, are exploding onto the scene. Former bakeries, grocery outlets, and hair salons are also being repurposed. They serve only real ale and sometimes artisan cheeses and pickles, and provide a convivial atmosphere. There’s not a lager, television, or jukebox in sight.

BrewDog Brewery in Scotland, perhaps epitomizes the state of the craft beer nation. Irreverent, passionate, and deadly serious about beer, the company has gone from two shareholders (and their dog) brewing 1050 hl in 2007, to a cast of 224 employees, 13 BrewDog bars, 53,500 hl and 14,208 shareholders. Bold branding initiatives helped them thrive through the recession. For example, they masterminded Tokyo, at 55% ABV the UK's strongest beer - so strong that it was banned by many outlets and hence found its star power through exports - and Tactical Nuclear Penguin, which at 32%, came in close second. Much of BrewDog’s success can be attributed to “Equity for Punks”, an online crowd-funding scheme that in its third offering in 2013 raised 4.25 million pounds from almost 10,000 investors in 22 different countries. Add headline-grabbing concepts like aging beer on the deck of a fishing boat, brewing beer at the bottom of the ocean, and dispensing a 28% beer from a modified deer’s head, and you have a trend-setting, award-winning company that defies traditional business models.

“Serving craft beer is no longer the differentiating factor that it was a couple of years ago,” says James Watt, co-founder. “As the number of craft brewers has grown exponentially, outlets are becoming a lot more discerning about the quality of beers they offer. We’re likely to see a wider range of international craft beers and more eclectic UK selections.” A harbinger of cans to come, the company is building an eco-friendly, high-tech tank farm and brewhouse, set to open in early 2016.

CiderLike their real ale counterparts, ciders are also growing in popularity. Fruit ciders are one of the fastest growing alcoholic drinks and no longer confined to apples and pears. Popular variations now include flavours such as raspberries with a hint of mint, blackberries, elderflower, strawberry blended with limes, cherry, and toffee apple; the choices seem limited only by the imaginations of a new breed of cider maker. Where five years ago shelves were racked with perhaps half a dozen variations, today they are stacked with upwards of 30 different varieties, creating a market that has doubled in volume in as many years.

SpiritsThe revival of micro distillers is giving rise to what has been described as a “new league of extraordinary drinking destinations”, serving strictly spirit and hops - no wine.

As the first distillery to open in the East End of London in over a century, The East London Liquor Company began operations in April 2014 as one of the industry’s 21st century pioneers.

“We wanted to revive East London’s rich legacy of spirits manufacturing,” says Alex Wolpert, co-founder and partner. “The craft spirits trade in the UK is experiencing a renaissance with several city distilleries popping up across the capital over the past 10 years. Even before we opened we had numerous bars lined up to take our gins, vodka, rum, and whisky; London clearly has an appetite for quality and locally-produced spirits.” Other artisan distillers, usually specializing in top quality gin and vodka, are experimenting with unusual flavourings like marmalade, rhubarb, or wood smoke, and with intriguing locations that are a hybrid distillery, off-license, and pub.

ChampagneWith emerging markets syphoning off Big Brand champagne and pushing up prices, Grower Champagnes are now edging onto the market. Packaged as hip, youthful, and affordable, artisan bubblies are earning celebrity status in wine bars, and being teamed up in counter-intuitive ways such as gourmet hotdogs and mac ‘n cheese.

“The real appeal of Grower Champagnes - other than being exceptionally good value - is that they

10 The Publican

liqueurs are traditionally reliant on the off-trade - and thus, according to research by Mintel, are well positioned to capitalize on the drink-at-home trend. Liqueurs are losing their old-fashioned, special occasion perception through recrafted recipes, modern packaging, and heavy promotional investment. Witness the success of Baileys, now better known as a social choice rather than indulgent one. With its flavour variations, such as hazelnut and biscotti, and its partnerships with the likes of Dairy Crest to produce a limited edition fresh cream, and Haagen-Dazs ice cream, its brand also has lifestyle relevance to the overall dining experience. Take note too, of Diageo (the world’s largest spirits’ producer) aligning its Qream liqueur with US hip hop star Pharrell, so as to target the youth market while producing liqueur foam products that underscore youthful, frothy fun.

Whether offered as “long serves”, as “colder than ice” shots from a Tap Machine (said to increase sales five-fold), or mixed as food-paired cocktails, underperforming liqueurs are now battling for pub listings with creativity and innovation. Watch for stronger branding for any occasion, smaller and trial sizes, and authentic story-telling wellness messaging; after all, monks used to make many liqueurs for medicinal purposes.

Cheers to the FutureIn spite of the many challenges, UK pubs are proving they can withstand tough times. The industry is still working its way through some its most significant transitions, but with hopes pinned on a younger demographic, the British are also demonstrating that they have a few trend-setting concepts in the hopper. Oddly, though, they haven’t yet embraced digital technology to reach the very market they need. Offering customers free WiFi and digital loyalty schemes are key areas where North Americans could teach the Brits a thing or two.

Snack on thisKey Note research reveals that for 54% of UK adults, eating a meal is their main reason for visiting pub and although gastro fare, tapas-style dishes and value-for-money, family-friendly meals are top choices, big pub companies report that dry-led sales is the sector showing consistent growth year on year. Pop-ups for food and ales are starting to pop up around the country such as a former ice cream van for hire that chimes for a pint rather than a sundae.

do not aspire to a consistent house style akin to that of the larger Champagne houses,” explains Simon Field MW, Champagne Buyer. “Grower Champagnes will only use grapes from their own vineyards, so that the wine in every bottle has been lovingly hand-crafted in one specific place and from one specific source. The result, almost paradoxically, is seldom completely consistent, but instead, the combination of a truly individual geography, geology and climate, and the creation of a taste that holds within it a true sense of place.”

Cocktail ManiaThe demand for artisan beer, champagne, and spirits is redefining the cocktail industry with customized, large-scale production from all corners of the UK. In keeping with consumer preferences for more aromatic, lighter, flavourful, and fresh experiences, trending concepts include carbonated drinks (with fizzy plain or flavoured waters, or a C02 pump), and high quality bottled cocktails that relegate Marguerita mix to the back shelf and help bartenders produce a quality product quickly. Spirited slurpies and shakes are also popular. Think vanilla milkshakes spiked with maple bourbon or vodka and Kahlua. Savoury flavours are also making their mark, primarily via Thai drinking vinegars alongside artisan varieties. Tea cocktails are trending everywhere whether as the base for pre-mixed “freshly brewed” vodkas, or as hand-crafted recipes. Even national grocery stores like Sainsbury and Marks and Spencer feature displays for home-made cocktails including spirits, liqueurs, and syrups with recipes as well as glasses, shakers, and other mixology equipment.

Look Out for LiqueursAfter 10-plus years of stagnant growth, liqueurs are being reinvented to appeal to the younger generation. Unlike other alcohol categories,

Tea cocktails are trending everywhere whether as the base for pre-mixed “freshly brewed” vodkas, or as hand-crafted recipes.