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Pub Guide

Opening Times

Issue 133 Winter 2007

Download a copy of Opening Times 133 as a PDF file - 2.9 MB

REAL ALE BACK TO GROWTH

The decline in real ale sales is expected to turn to growth in the next few years as smaller brewers continue their spectacular success.

A new report shows that regional and independent brewers are increasing their sales by an average of 7.5% per year, and one in three pints of ale sold in the UK is now cask beer.

The report, “The Intelligent Choice” – The True State of the Market for Cask Ale in 2007, is backed by the Society of Independent Brewers, Independent Family Brewers of Britain, CAMRA, the Cask Marque Trust and market analyst AC Nielsen.

Real ale declined by 61% in the ten years between 1995 and 2005 to represent only 7% of the total alcohol market. But most of the decline derives from the abandonment of cask beer by the UK’s global brewers.

Additional headline findings published in The Intelligent Choice include:

  • Good quality cask ale accounts for up to 40 percent of a pub’s beer sales
  • Consumers are becoming increasingly affluent and show an interest in different and more complex flavours
  • Forget style bars, the traditional pub is back in fashion
  • Consumers are starting to favour buying local produce and cask ale clocks up far fewer ‘food miles’ than imported lager brands or wines

Carlsberg and Coors are now the only globals producing cask beer in the UK. The Tetleys and Ansells brands and Burton Ale are brewed by Carlsberg in Leeds, and Worthington plus some tiny brands are brewed by Coors in Burton-on-Trent.

The global brewers’ other cask brands, including John Smiths, Boddingtons, Courage, M&B and Websters, are brewed under licence by independent brewers such as Burtonwood, Hydes, Wells & Youngs, Brains and Highgate.

The moves of these brands to smaller brewers are an indication of the declines in volumes – global brewers now represent only 19% of the real ale market, yet they control 85% of total UK beer production. The globals’ brands appear to receive little promotion and now rarely seen in many parts of their former stamping grounds.

But other parts of the market have also declined, notably alcopops and keg and ‘smooth’ ales. Against these declines, wine is seeing spectacular increases as are some bottled ciders on the back of powerful marketing.

Meanwhile, the independent brewers and the burgeoning microbrewery sector are fueling the halt in the decline of cask beer.

The determination of the medium-sized, independent brewers appears to be paying off, despite over-capacity in the sector, and the closure of breweries such as Gales, King & Barnes and Ridleys that have resulted.

The microbrewery sector, spawned by the activities of CAMRA, only represents 1% of the entire alcohol market, but it has seen 70% growth amongst the members of the Small Independent Brewers’ Association and around 160 new independent and micro breweries have been launched over the past two years.

Paul Moorhouse