CGA Strategy

2012-02-28T03:04:00.000-08:00

Cocktails - What is their potential? CGA Chief Operations Officer Phil Tate investigates.

CGA’scombination of multiple data sources and on trade specialism becomes trulyvaluable when used to challenge perceived wisdom and provide an informedperspective on the opportunities and issues facing drinks producers andretailers. The content of our recently released report on cocktail culture inthe UK does just that. Contrary to the perception that cocktails only work in aselect handful of dedicated bars the report reveals that almost one in five ontrade outlets serve cocktails. This number is also growing: up +16% in the lastyear.

Themisperception that cocktails are no more than a fringe element of the typicalpub or bar offer has been limiting opportunity for too long, resulting in lostmargin and, most importantly, less cash in the till.

Thereis a growing realisation amongst savvy operators that cocktails can play acritical role in driving footfall and revitalising profitable spirits categorysales. Given the generally declining frequency in visits, licensees need todeliver a truly premium experience to encourage consumers out of their homes andaway from Saturday night event television.

CGA’sresearch showed that introducing cocktails could grow spirits sales in allforms – cocktails, straight serves and spirit & mixer. As cocktail capabilitygrows, so too do the potential spoils: outlets with sophisticated cocktail capabilitysell even more spirits in turn than their mainstream counterparts. It comes as little surprise then that so manyare jumping on the bandwagon for the first time; providing new competition foroutlets with an established offer.

The CGA team has created, for the first time,a brand new segmentation of the market that quantifies these moves and pointsthe way toward a new understanding and therefore opportunity. Within thecocktail selling universe there exists a hard core of around 3,000 outlets withsophisticated cocktail capability. Thereis then a further 5,000 venues with back bars stocked with many of the elementsneeded for a strong, profitable cocktail offer. As product stocking is thefirst building block of cocktail capability; these outlets are the nextfrontier of cocktail development in the on trade.

Whetherlooking to implement cocktails for the first time or in order to move to a moresophisticated offer the same principles of success exist. Brand owners need toidentify and support the top flight of outlets with tailored activation.Outlets themselves need to look hard at the category before jumping in andinvest the necessary time in training, implementation and serve quality to thecustomer.

Ofcourse, a cocktail offer is not right for every venue but the opportunity hasspread wider than ever. The rightinnovation, targeted at the right outlets will see any investment rewarded bythe comforting sound of the chime of the till.

For more information please contact us directly.

Legacy games - What next for Stratford's pubs?

2012-02-13T09:29:00.000-08:00

CGA's Matt Crompton talks about the Olympics and more importantly, it's effect on pubs in Stratford.

It seems like a distant memory now when Lord Seb Coe and his team secured the Olympic Games for London way back in 2005. It may have only been seven years ago but the world was a very different place. Cask wasn’t ‘cool’, the smoking ban was still a year off and ginger beer was still something you associated with Enid Blyton novels.

Fast forward to 2012 and we are now only six months away from having the ‘greatest show on earth’ on our doorsteps. The stadium is built, the tickets are on sale and a predicted audience of 4 billion people around the globe are expected to enjoy some first class sport.

But what of the great British pub? And in particular, Stratford’s pubs? Whilst most of the nation’s outlets will be focussing on getting extra income from showing The Games live on television, Stratford’s boozers will have the unique opportunity of having thousands of extra punters passing their doors.

I recently undertook a visit to the Stratford area with the Publican Morning Advertiser team to see what the local East-End pubs thought of the games and whether plans were in place to attract extra visitors into their venues.

Over a quarter of all Stratford’s drinking outlets are Local Community venues so it will be these venues that will face the biggest scramble for new drinkers. Whilst in Stratford, it quickly dawned on me that there was a certain divide in the area.

The brand new Westfield Shopping Centre characterises the modern side of the town.

Over-looking the Olympic Park and boasting the impressive The Cow Pub amongst many other drinking venues; this side of the tracks seems well prepared for the games.

The Cow, owned by Geronimo Inns, overlooks the entrance to the Olympic Park and will look to offer spectators a premium experience with the outlet providing fresh British produce and a huge array of premium spirits and ales.

This type of Managed venue seems perfectly in tune with current market trends affecting the channel. With openings on the up and trends often emanating from the tenure, the well-worn structure of a Managed outlet is often best suited to cater for special events such as The Olympics.

If you take a stroll just 5 minutes away from the Olympic site Stratford becomes a different proposition all together. We visited both The Queens Head and The Princess of Wales whilst in the town and both licensees told a very similar story.

The Queens Head Landlady, Margaret Hammil, bemoaned the lack of tickets for young, local people. She also spoke of her dismay at late-night delivery times during The Games and also at the sheer volume of traffic passing through the capital.

Both Margaret and Billy Sinfield, Landlord of The Princess of Wales were also hugely concerned at what legacy The Games would leave. Will anyone be interested in Stratford once The Games has finished? Could the Olympic Stadium become the next Millennium Dome? Will West Ham United move into the stadium?

Both of the above pubs are typical East-End drinking dens and could easily promote themselves on their traditional British heritage. The startling question is though will most tourists even get this far into Stratford once they have been blinded by the glamour and glitz of Westfield and it’s huge array of trendy, fashionable bars?

This type of venue now has a choice. They can either do nothing and hope and pray just being there will be enough to attract sports fans or they can start planning now and try and offer the thousands of expectant fans a slice of a real East-End London pub.

There are many potential things that could be done to boost an outlet’s profile during the run up to games. Food may play a part, promotions could also help but creating a community atmosphere where spectators from far and wide can relax in surely has to be key.

So if you are planning to do down to the big smoke to see Usain Bolt run 100m faster than you can down a pint, make sure that you see all of Stratford and support the local pubs who were there 50 years ago and hopefully will be here for 50 years after The Games.

Greene King celebrates Coronation discovery

2012-02-10T09:10:00.000-08:00

An ale which was shelved because of an abdication has been discovered in a bricked up cellar in Bury St Edmunds.

Coronation Ale was brewed 75 years ago. The bottled beer was created to commemorate Edward VIII’s first year on the British throne. However, Edward abdicated to marry American divorcee Wallis Simpson.

The love affair is the subject of Madonna’s recent film ‘W.E.’ and Edward VIII was portrayed in ‘The King’s Speech’ by Guy Pearce.

Coronation Ale was never on sale. It dates from 1936 and may have been left undiscovered if it wasn’t for workmen replacing a floor at Greene King’s brewery. The ale was found in a bricked-up cellar.

It has been tested by Greene King’s head brewer John Bexon. John said: “This really would have been a fantastic beer in its day. It was 12 per cent when it was brewed so is quite strong and has kept really well.”

He added that it has a rich fruit flavour. The veracity of Coronation Ale has been confirmed by beer historians, who consulted records and museum articles.

John said that it was impossible to put a price on the beer. He also hinted that more discoveries could be made.

He commented: “We’ve brewed beer on the same site in Suffolk for over 200 years and there is a network of cellars under the brewery which means there could be more vintage beers just waiting to be re-discovered.”

Other unsold beers discovered by the workmen include one to mark the current queen’s Coronation in June 1953 and Audit Ale which was a barley wine brewed in the 1950’s.

Greene King’s current brews include IPA, Old Speckled Hen, Abbot Ale, Belhaven Best and a range of seasonal ales.

Brooklyn Blasts in at £4 per half-pint

2012-01-30T09:47:00.000-08:00

A 9% abv beer, Brooklyn Blast, is on limited sale in UK pubs and bars.

The sweet-tasting ale is another offering from craft beer specialists Brooklyn Brewery.

The Cornerhouse in Manchester is one of the venues selling Brooklyn Blast. The venue has previously stocked Brooklyn Brewery’s flagship product – Brooklyn Lager.

Talking about Brooklyn Blast, Bar Manager Chris Ball said: “We don’t actually sell it in pints, because of its abv, but we do sell it at £4 per half, which is a little high, but it’s honestly the lowest we can go in order to make any money back at all.”

Chris added: “The reactions from customers have mostly been great, although given the price-tag not that many people have been persuaded to try it. We do get a lot of passing trade that we know aren’t likely to go for a product like Brooklyn Blast, but those who come here for something a bit different appreciate that we have it.”

Brooklyn Brewery was founded in 1988. Its beers are distributed in 20 countries.

The brewery’s seasonal beers include Black Chocolate Stout, Monster Ale and Pumpkin Ale amongst others. It plans to quintuple overall capacity at its brewery by 2013.

www. brooklynbrewery.com

www.cornerhouse.org

Innserve reward the delivery of the perfect pint

2012-01-17T01:53:00.000-08:00

A superbly kept cellar could scoop a £1,000 prize in a national competition launched by drinks dispense specialists Innserve.

The Best Cellar Award rewards pride and passion in cellar management and drinks dispense. It focuses on the journey from barrel to glass and the elements that lead to a flawless pint.

Judges will take into account: cellar management, line cleaning and cellar regime, understanding of how a cellar works, clean glassware, a commitment to training staff and the desire to always serve the perfect pint.

Speaking to The Morning Advertiser, Steve Lakin, Innserve’s business development manager, said: “Every year the awards seem to attract more interest, we are anticipating 2012 to be no exception.”

Mr Lakin added that the growing success of the competition is due to the fact that many appreciate the recognition that serving a great beer affords.

The awards are supported by a fictional gent called Rupert Lovebeer who sports both a suit and tie and a pint of fine ale.

Rupert will help award the six top prizes to be won of £1,000 - three nationwide prizes of £1,000 for The Best Cellar and three nationwide prizes of £1,000 for The Best Newcomer.

There are 42 prizes overall to be claimed, including 18 regional prizes of £200 for the Best Cellar and 18 regional prizes of £200 for the Best Newcomer.

Winners also receive a plaque and certificate.

Innserve supplies, installs and maintains drinks dispense systems throughout the UK.

The competition closing date is 25^th May.

http://www.innserveltd.co.uk/competition

Rhythm of the night

2012-01-13T03:24:00.000-08:00

The party season is over, and we’re back at work and back tocounting down the days until we can go back in to the pub / bar / clubguilt-free (or, indeed, with some money in our pockets after the coin-fest thatis the festive season – a time when I, personally, treat the bankroll like it’sout of a board game – see also: holiday spends). If you’re in this situation,I’ve compiled a story of a night out using songs.
Feel free to comment with your own additions - there were a lot of tracks that didn't make the cut.

A little weekend whimsy - enjoy!

1) Jens Lekman – A Man Walks In To A Bar
Starting out slowly and relaxed – that’s the place you want to be in whenyou’re about to enjoy a ‘beer and a bowl of peanuts’ (to quote Jens), isn’t it?That’s about as far as this song’s lyrics goes in terms of relating to thesubject at hand, as ‘the bar turns in to a spaceship and the bartender giveshim a haircut’. Turns out it was a joke.

2) Wham! - Club Tropicana
After that nice, slow, relaxed start, Club Tropicana is the bar you’ve actuallyjust gone in to, although not very realistic, as apparently all the drinks arefree and it sounds as if the weather is nice and it’s full of celebrities.

3) The Housemartins – Happy Hour
After that dreamland of Club Tropicana where the drinks are free and everyoneis famous, we’re a little bit more down to earth with Happy Hour by TheHousemartins (you know, Fatboy Slim’s old band). Incidentally, Paul Heaton from TheHousemartins / Beautiful South has recently became the landlord of one of mylocal watering holes.

4) Stereophonics – The Bartender and the Thief
Anyway, now you’re in the bar and you’re going up to the bar to get your drink,so who do you have to speak to? The bartender of course. Another song that hasthe right title and little else to do with the general theme (and it’s the bestsong about a bartender I could think of)

5) Belle & Sebastian – Dear CatastropheWaitress
You might have gone to a nice bar or restaurant for your drink, where they cometo your table and wait on you hand and foot (what a treat). Naturally, be waryof the catastrophe waitress or your drink could end up all over you (reminds meof the time I worked in a restaurant and dropped a prawn cocktail down awoman’s back, oops).

6) Rupert Holmes – Escape (The Piña Colada Song)

Of course, what else are you going to order when you finally decide what tohave!? There are loads and loads of songs that feature drinks, so I had to bequite strict in order to not turn it in to a bit of a binge. Also includes oneof my favourite lines from a song, ‘I’m not much in to health food, I am in toChampagne.’

7) Brand New – Soco Amaretto Lime
This might be something you’d like to try in the future, if you haven’t already.And I’d dare you to casually say the name of the drink to your bartender orwaitress, as if you say it all the time. ‘A Soco, Amaretto, Lime please’ – Ican near guarantee that whoever you ask will say ‘pardon?’
This song is the much needed dip that all great setlists need to calm theaudience down in preparation for the build-up to the end.

8) Rihanna – Cheers (Drink To That)
So you’ve got your Pina Colada, you’ve got your Soco Amaretto Lime… Prost! Ifyou’re in Club Tropicana, Rihanna is probably letting her Irish Whiskey sinkin. There’s a party at the bar, everybody put your glasses up.

9) Los Campesinos! – You! Me! Dancing!
This is what usually happens when you’ve had a couple of pina coladas andyou’re having a good time (mainly in Club Tropicana, I’d imagine).Incidentally, this song is featured on no less than TWO adverts for beer, andnearly went on more.

10) Whiskeytown – Bar Lights
Wasn’t sure where this one could be shoehorned in (there was no way I wasomitting it, it’s superb), so it’s dedicated to when the lights flash in a loudbar to signify last orders.
“The bar lights and the liquor, and the way all the bottles they shine
Well, I got five more dollars, drink another, you’ll feel fine”
Usually the way you feel at last orders, isn’t it?

11) Semisonic – Closing Time
The original ode to the bar or club closing! Who hasn’t been to somewherethat’s spun this one as the final song of the evening? Let’s ignore the bitthat says
“Closing time, one last call foralcohol so finish your whiskey or beer,
Closing time, you don't have to go home but you can'tstay here.”
As that would ruin the song that’s coming up next. This is the warmer for thestormer that is…

12) Bluetones – After Hours
I’ve only ever been to one lock-in before, where stopped charging for drinksand essentially started to just use the bar area as their living room. It wasbrilliant. Unfortunately, it wasn’t anything like the video to this song (havea look if you get a minute).

13) Vanessa Paradis – Joe Le Taxi
A latecomer to the party, as recommended by our CEO, Jon Collins, if you’reheading home, take a (Joe Le) Taxi. And make sure it’s a legal taxi (Driver & VehicleAgency for more information). Wouldn’t recommend the taxi driver Vanessasings about, as I’m sure the lyrics say he likes a sip of Rum (you can checkall the facts on drink driving at Drinkaware)

14) Gomez – Hangover
You probably shouldn’t be going out and drinking so much that you’re waking upwith a big head, but if you do, then this one is for you (Drinkaware, for the facts). Anothersong whose name doesn’t quite match up to the rest of the song, but if you arefeeling delicate, Ben Ottewell and Tom Gray’s vocals will soothe you a treat.

15) Arctic Monkeys – Fluorescent Adolescent
The most tenuous of all these choices, mainly because it includes the line‘this bloody mary’s lacking the tabasco’. Bloody Mary – featured on Leeds bar ‘Nation of Shopkeepers’ Sunday menuas ‘breakfast of champions’. Amen.

To hear the playlist in full, click here.

Hydes lets loose Racey Rudolph

2011-12-22T05:17:00.000-08:00

A festive ale has been launched by Hydes to sit alongside its familiar seasonal brew - Rockin Robin.

Hydes describe Racey Rudolph as ‘a spicy, malty beer.’ It has an abv of 3.5%. The Manchester brewers add that it is ‘full of warming malt winter flavours.’

David Safiruddin, Marketing Director, said: “Craft ales have grown from strength to strength in 2011, and these will be two fabulous beers to close out the year with.”

Both Racey Rudolph and Rockin Robin are on sale throughout the Hydes pub estate.

Hydes is owned and managed as a family business. The brewing side includes a commitment to craft ales.

The Hydes brewing dynasty began in 1863 when Alfred and Ralph Hyde acquired a small brewing concern from their grandfather. Hydes found a home at the Queens Brewery Site, Brooks Bar, in Manchester city centre.

Its other beers include Hydes Original, Amber Smooth, XXXX Strong Ale, Goalden Drop craft ale and a range of others.

Ex Housemartin becomes a landlord

2011-12-09T05:08:00.000-08:00

Paul Heaton, famous for singing in The Housemartins and The Beautiful South, must be bracing himself for Happy Hour jokes after his decision to buy a Salford pub.

The singer and songwriter has explained that taking on the Kings Arms is a practical move on his part. He rehearses and records in the room upstairs. In addition, his partner, Zena, will get involved in the theatrical side of the pub’s activities.

Paul has taken the licensing exam but doesn’t plan to run the pub on a day-day basis. He will, though, stamp his identity on the Kings Arms.

Paul told the website Manchester Confidential that the subject of crisps is dear to his heart. He is keen to sell KP, Tyrrells, Seabrook crisps, along with others from small operators. The revival of Seabrook’s Spring Onion flavour is high on his wish list.

Despite bringing his own flavour to the pub’s character, Paul stressed that he would not change any of the pub’s popular and well-established features. Responding to comments on Manchester Confidential, Paul said: “We have no intentions of changing anything other than what we have to. The staff are integral, so they'll stay”

He plans to play gigs at the Kings Arms and last year showed his support for local pubs. His ‘Pedals and Pumps’ tour saw him embark on a 20-day cycling tour, performing at a different pub most nights.

As a star of The Beautiful South, Paul released a number of songs about pubs and drinking including ‘Old Red Eyes is Back’, ‘Liar’s Bar’and ‘Look What I Found in my Beer’. The Beautiful South split up in 2007, blaming ‘musical similarities’.

www.studiosalford.com

Greene King Discovers new talent

2011-11-29T01:35:00.000-08:00

Celebrity Chef Marco Pierre White has, this month, given his support to an apprenticeship scheme, introduced by Greene King.

The Discovery Apprenticeship scheme currently involves almost 700 young people working in Greene King’s pubs and restaurants.

Marco Pierre White helped to officially launch the programme with a cookery masterclass.

The masterclass also celebrated the achievements of some of the first apprentices to qualify. It was attended by eight apprentices, each nominated by their Business Development Managers and Area Chef for Loch Fyne, Chris Stanbrooke.

Chris, a former apprentice himself, said: “To be able to get tips from one of the ‘greats’ like him was a once-in-a-lifetime experience for all of us.”

The scheme has also been praised by Karen Woodward, Divisional Apprenticeship Director at The National Apprenticeship Service (NAS).

She said: “The NAS are delighted to be supporting Greene King and their selected provider, Charnwood Training Group, in their Apprenticeship programme.”

Over 250 employees have completed the apprenticeships and 425 are currently in training. Greene King intends to extend the scheme to cover 1,300 employees in 2012. Around 70% are currently aged 24-years-old or younger.

Jonathan Webster, managing director of Greene King’s Destination Pubs and Restaurants division, said: “Our aim is not just to provide a ‘pub job’ but to offer a clear career path for our employees.”

He added: “We might even develop a future Michelin star rated chef!”

Marco Pierre White started his own training at the Hotel St George in Harrogate. At the age of 33 he was awarded three Michelin Stars.

Vintage Inns nourish poetic imaginations

2011-11-11T04:58:00.001-08:00

A well crafted line could lead to a free meal from Vintage Inns, in a competition being judged by former Poet Laureate Sir Andrew Motion.

The national competition is being held to honour Great British country pubs. Each week Sir Andrew will choose one line, from those submitted, to take the poem forwards.

The poem that results will be an accumulation of those winning lines. The opening line is: ‘The muted brilliance of autumn leaves.’

Each week one person will receive a signed copy of one of Sir Andrew’s books along with dinner for four, plus wine, at their local Vintage Inn.

Sir Andrew will also be producing his own verse on the Great British country pubs theme.

Vintage Inns, a Mitchell’s & Butlers pub chain, features ‘real ales, real fires and pub-food as hearty and warming as the welcome.’

There are nearly 200 Vintage Inns throughout the country.

Sir Andrew was Poet Laureate between 1999 and 2009. His sequence of war poems ‘Laurels and Donkeys’ will be featured on BBC Radio 4 over the weekend to honour Remembrance Sunday.

www.vintageinn.co.uk/offer/poetrycompetition/

Adnams adds new recipes to its menu

2011-11-04T02:25:00.000-07:00

A new range of condiments is on offer from Adnams, along with the reappearance of its winter warmer Old Ale.

One of the Suffolk brewers and pub owner’s kitchen teams created the recipes for the condiments. Alexese Scott, Adnams’ Cellar & Kitchen Food Buyer, was also closely involved in the development.

Ms Scott said: “We’re incredibly proud to be putting our name on the labels. We will be stocking the full range of products in all of our Cellar & Kitchen stores, online and also in our hotels, and are looking forward to sharing our new offerings with our customers.”

The range uses local ingredients and includes Adnams Tomato Ketchup, Wholegrain Mustard with Broadside, Brown Sauce and Strawberry Jam.

The labels were designed by local artist Clare Curtis. Her coastal illustrations are inspired by Suffolk’s landscapes.

Meanwhile, Adnams 4.1% ABV Old Ale is back to liven up winter. The mild ale style beer is brewed with East Anglian pale ale and Crystal malted barley and Boadicea hops.

Adnams other beers include Ghost Ship, Southwold Bitter, Broadside and Explorer, amongst others.

Hydes and Wychwood offer Halloween treats

2011-10-27T08:18:00.000-07:00

New craft beers are on offer from Hydes to mark both Halloween and Bonfire Night.

The Manchester brewer has named its 4.4% ABV Halloween brew Hubble Bubble. Its 4% ABV ‘Guy Fawkes’ beer is called Bright Spark.

Hydes’ Marketing Director David Safiruddin said: “We have always had a great response to our crafted themed beers and in producing these two we aim to further build on that proven success.”

Meanwhile, Wychwood Brewery is making sure that it doesn’t miss out on Halloween fun. The Oxfordshire brewer is holding its own Halloween Fair at Wychwood Brewery on Monday 31^st October. It will include pumpkin carving and other spooky entertainments.

Both Wychwood’s flagship beer, Hobgoblin, and its famous mascot will be lifting spirits at the Bram Stoker International Film Festival in Whitby and the Sneaky Experience in Leeds on 31^st October. The Sneaky Experience will feature ‘ghoulish films’ that will be recreated in ‘stunning detail at a secret location’.

Hydes Brewery was established in 1863. Its brews include Hydes Original, 1863, Amber Smooth, XXXX Strong Ale and others.

Wychwood Brewery officially came into being in 1990 when the Eagle Brewery was renamed Wychwood after the ancient medieval Wychwood Forest which borders Witney.

Wychwood’s beers include Hobgoblin, King Goblin, Wychcraft and others. Its seasonal beer for October is Wizard’s Staff.

www.hydesbrewery.co.uk

www.wychwood.co.uk

“The rise and rise of craft and cask beers…”

2011-05-31T10:08:00.000-07:00

By Mark Newton, Client Relations, CGA Strategy Limited

Two of the biggest news stories in the drinks industry over the last few months have been the purchase of Sharps Brewery by Coors-Molson and the American craft brewer Goose Island by AB-InBev.

Not only is this good news for the two smaller companies from a financial perspective, but this gives two of the biggest names in the brewing world an important foothold in one of the most important sectors of the GB LAD market at the moment.

Although in some ways cask and craft beers are different products they are linked by a shared philosophy and customer demographic that, combined with the rise in interest in traditionally made, high quality long drinks, has made them an attractive proposition to UK producers and retailers alike.

The fact that the two major players involved are both primarily lager producers, shows how far the cask and craft revival has come over the last couple of years. This is backed up by CGA trended category data.

Cask Ale, World and Speciality Lagers (which includes a number of US craft beers) are the categories experiencing growth in consumption, while Standard Lagers are reporting the highest losses over the short term.

This is also translating into category space in the outlet, especially on the bar, with cask ale (along with cider) continuing to erode the position of traditional category favourites such as standard lager – Carling, Fosters, etc.

The average bar has added 2 incremental taps since 2008. Stout & Keg Ale are the only categories not to have benefitted from additional visibility but it is undoubtedly Cask Ale (along with cider) which have been the largest beneficiaries of the trend.

However, it is interesting to note that creating a nationwide brand from a regional or niche category base is not without its difficulties. National brewers have exhibited similar acquisition behaviour in the past and this has not always resulted in the sustained success expected. The larger regional brewers – such as Greene King, Marston’s and Fullers - are themselves creating almost ‘national’ brands from their core products, such as Pedigree and London Pride, and this has helped to create a divide between commercially led mainstream ales and the micro brewery products which continue to be successful as much because of their niche positioning as their quality.

The fact that the major brewers have now latched onto this increasing trend, suggests that we will continue to see further growth within this sector for the next few years. Hopefully this will offer a greater selection of choice to customers over a wider range of outlets than ever before.

“The second coming of the single serve…”

2011-05-31T10:06:00.000-07:00

By Mark Newton, Client Relations, CGA Strategy Limited

In recent times single serve products – known to many consumers as shots and shooters - have seen a significant revival in interest and, as a category, is now one of the biggest growth areas in the on trade.

Overall the straight serve category – which includes products like Jagermeister and Sourz, along with sambuca and tequila – is in 2.2% volume growth, outperforming total traditional non-cream liqueurs and specialist spirits which are showing a -4.4% volume decline.

Interestingly it is not just the high street circuit bars and nightclubs which are driving strong growth. Food led pubs are also enjoying significant increases – this is particularly prevalent in those outlets which change their offer from day to night, moving towards a more high tempo occasion as the evening progresses.

Looking at segmentation in more detail, volume growth is primarily being driven by night clubs and café wine bars - clubs accounting for 36% growth, with bars contributing 18%. Night clubs also provide the best rates of sale and this is being further driven by a trend for operators to improve and increase their back bar portfolio.

By sector it is, perhaps unsurprisingly, the independent free trade that is delivering the greatest volume share (50%), closely followed by Managed at 42%. This shows a definite need to educate the Non-managed sector of the benefits of the category – although this only applies where the venue style is appropriate.

So what products are driving the category? There is no doubt that Jagermeister and Sambuca (primarily driven by Antica) are currently the big brands to watch. The appeal of both brands is most highly felt in circuit bars and wet led outlets, where cross demographic appeal and distinctive brand associations help maximise consumer interest.

In the more mainstream shots sub category, Sourz continues to increase distribution and is bucking the trend towards a natural decline created by competition from other products.

For the future tequila is likely to have the best potential for additional success. Although it has historically been intrinsically linked to straight serve, tequila is actually only distributed in 54% of Straight serve stockists. From a volume perspective the sub category is also underperforming, which creates an opportunity to restate its significance on the back bar through targeted marketing and distribution gains in key segments such as circuit bars.

The battle on the back bar is likely to continue for some time yet as the changing structure of the on trade market place offers further opportunities for straight serve products in outlets pitched more towards high tempo environments. It also looks likely that those products that can provide a mixture of cross gender appeal, heritage and low key marketing – avoiding mainstream perception - have the most chance of success in a revitalised category with continuing medium term potential.

“Is this the death of major drinks promotions? Few January sales for the on trade this year…”

2011-05-31T10:04:00.000-07:00

By Mark Newton, Client Relations, CGA Strategy Limited

During the first weeks of the New Year, CGA took a snapshot* of comments and anecdotes reflecting some of the current thinking from licensees and managers across the country as encountered by our nationwide team of full-time field researchers.

One of the factors which stood out was the decline in drinks promotions. Whether in Bristol or Aberdeen, the reality appears to be that outlets no longer necessarily see major price deals as an easy way to increase footfall or turnover.

In Anglia, there appear to be very few drinks related promotions so far. While many of the established branded food led outlets continue to push meal based offers, most wet led venues have few deals available.

Many of the local pub landlords polled suggested that government efforts to discourage binge drinking had sunk in, with several stating it as their primary reason for not running major multi purchase promotions this year.

Further west, along the M4 corridor, many of the responses received were directed at the VAT increase. A number of licensees were still in the process of putting their prices up (on average by 10p per drink) and had yet to give thought to providing any new promotions.

Only 2 outlets in the area had any significant offers available – one being 3 branded shots for £5 and the other a double branded vodka or gin for £3 – and both were ongoing from last year.

The South West tells a similar story, with many respondents waiting to see how the VAT increase will be passed on by their pub companies before deciding if there is adequate margin to allow discounting. The overall feeling is that promotions will just not be worth doing this year.

In the more affluent - and less tourist dependent - South East there is a general feeling that there are significantly fewer promotions right now than the same period in 2010. One high street circuit outlet stated that last year they offered ‘buy one, get one half price’ on all bottled beers, whereas this year the same deal is only available on a single product.

Travelling north, licensees in the West Midlands reflect the feelings of many within the local on trade. The general mood is one of disheartenment – with overheads increasing, and rising unemployment in the area squeezing spending further encouraging drinking at home on supermarket special offers.

The only significant promotions currently available are based on doubling up spirits for an additional pound and some small scale wine discounting in food led outlets.

Northern England reflects a similar story with many of the outlets polled only providing offers on ‘house doubles’ and suggesting a dependence on wholesaler deals to create/ drive promotions.

Finally, moving into Scotland, the blame has been squarely laid upon the Government. Many of the licensees and managers polled felt that the increase in VAT and general costs were forcing them to put up prices just to survive.

A combination of lack of consumer confidence, rising overheads, the VAT increase and the continuing influence of the health lobby (and related governmental policy) have put paid to the ubiquitous ‘BOGOF’ deals of the past. Where offers are available they are almost entirely linked to food, usually through ‘meal and drink’ deals, or small discounts on specific products or categories (often spirits).

Overall, it appears there is no doubt that the large scale promotions which were such an integral part of the business strategy for many on trade premises in previous years have disappeared – in some cases possibly for ever.

“2011 a difficult year ahead for the on trade - but there are positives too…”

2011-05-31T10:02:00.000-07:00

By Mark Newton, Client Relations, CGA Strategy Limited

There are many reasons for the on trade to fear the coming 12 months – VAT increases, a continuing tough economic climate, changing consumer behaviour (pre/post loading) and increased – and ill- founded – regulatory pressures. However, as we have seen over the course of the last year, there is an in-built resilience by many of the successful retailers and producers who have recognised the importance of quality, value for money offerings, along with a continued emphasis on premiumisation (often in the form of treat expenditure).

The total impact of the forthcoming Coalition Government’s spending cuts – public sector pay freezes, job cuts and rationalisation – remains difficult to quantify, but there can be no doubt that disposable incomes will be further squeezed. To further exacerbate the situation for the on trade the January VAT increase will likely see the big off trade retailers and supermarkets readily expecting their suppliers to absorb as much of the increase as possible, whilst the smaller, independent off trade outlets and many pubs, bars and clubs are likely to see an even greater price differential as they are hit hardest by the increases in price to the customer.

During 2010 all drinks categories suffered alongside the falls in overall outlet numbers. However, recent trends suggest that both spirits and wine can be seen to be improving as the changes in the dynamic of the marketplace make themselves felt.

Within spirits, premium brands are maintaining a consistent trend for the category in tandem with the revival in the wine/café bar segment. Equally, wine trends look solid as outlets such as food led venues and cafe bars drive the on trade.

From a retail perspective flexibility is the key - it is essential in challenging times to foster an ability to capitalise on demand whenever it occurs. Along with a tailored drinks menu across all categories, providing premium brands at sensible prices and avoiding deep discounting activity.

Premiumisation trends can be capitalised on to generate improved revenue and customer perception, as consumers look for better quality experiences across the board. This will manifest itself through a greater selection of specialist spirits such as sambuca, rum, flavoured vodkas and bourbons. Premium fruit ciders will continue to dominate shelf space in the fridge. On the bar, cask ale hand pumps and keg ‘craft’ beers will continue to squeeze lager font space with local provenance and regional or micro brews taking pride of place.

The on trade will undoubtedly survive the coming year - with premium drinks and experiences driving category growth but, equally, customers will always be on the look out for genuine value for money. This is the dichotomy facing the industry for the future – but, with continuing focus, it appears more than capable of moving forward.