Quality counts

New on-trade managing director Colin Pedrick is hoping to realise Interbrew UK's aim of 'Making Beer Great'. Ben McFarland reports.

This time last year, Interbrew UK was putting the finishing touches to the convoluted deal that saw the high profile acquisition of Bass Brewers and the subsequent departure of the Carling business to Coors.

Brands have been added to the portfolio, new Scottish and Irish businesses incorporated and the dust, at last, seems to have settled.

Formerly part of the Belgian brewer's Western Europe division, the new, improved and more substantial Interbrew UK (IUK) is now a separate entity with a new managing director dedicated to the UK on-trade.

Colin Pedrick took up the new position in January after more than 20 years in the business. He is the man entrusted with the task of bringing the company mission statement, "Making Beer Great", to life.

"We have spent the last year being a bit inward looking and it's been spent establishing a new business," says Colin. "We feel passionately about beer and we came up with these three simple words."

Speaking exclusively to thePublican.com prior to the publication of IUK's Market Report 2003, Colin's on-trade mantra of more quality and less (price-driven) quantity may not be new, but it is one Colin feels is still not being recited by the trade.

"We still feel that we're having to convince licensees about quality and we can't understand it. There's clear evidence that by raising the standards in all areas, licensees will contribute a 10 per cent increase in rate of sale that's sustainable if they keep up these standards," adds Colin.

While market conditions may be tough and the temptation to drive traffic through cutting prices high, especially on the high street, Colin feels licensees should look long-term rather than going for a short-term fix.

"A consistently high quality experience is going to pay long-term dividends in terms of rate-of-sale and value for licensees. Low pricing and promotions simply won't."

The on-going Stella Artois Quality Programme is stepping up a gear this year. More than 23,000 outlets are to get a visit from an IUK team dedicated to improving the quality and presentation of lager and bringing it into line with the much celebrated Belgian example.

To this end, the brand is also continuing its Stella Artois Quality Award in association with the British Institute of Innkeeping (BII) and six million branded glasses are also being introduced to the on-trade.

"I don't think there's a student bedsit in this country that doesn't have a Stella glass. This is relevant though, as in the take-home sector people are becoming more educated about how to serve beer at home and the nature of drinking in the home is moving closer to the on-trade experience.

"This means that if people choose to go out, licensees need to make sure that the pub experience is worth going out for."

Aggressive pricing in the take-home sector has raised questions about the pub price of the "Reassuringly Expensive" Stella Artois, especially in light of IUK's recent price hike.

But Colin argues that compared with other product categories such as soft drinks, and interestingly other countries, UK beer still lags behind in terms of the price disparity (see chart below). The gap between take-home and on-trade can successfully be bridged through improving quality.

"The fact is that people want to go out and expect to pay more in pubs," he says. "There was a time when wine was undrinkable but now the quality has greatly improved, people will pay the same amount for a glass in a pub as they would for an entire bottle at home. Beer is no different."

A similar quality programme is being undertaken for both its recently acquired Tennent's and Bass brands. "It's just as important to apply the same quality ideals to standard lager and ale as it is to Stella," adds Colin.

When asked about Bass, Colin says: "We're sitting on a great brand. I believe it is the only cask ale that has genuine national credibility - there is no better placed brand to do that."

Colin is also remaining bullish about the future of Castlemaine XXXX, IUK's other standard lager.

"What we've done with XXXX is a fantastic achievement. Most people thought we would fall flat on our face but we're really pleased with it and we're on track to replace 80 per cent of Heineken outlets."

Continental On-Trade/Take Home Beer Pricing Levels​