ScotCo and C-T link up in servicing innovation

by Tony Halstead Two of the UK's biggest brewers are pooling their resources with the launch of a new independent technical services company in a mould-breaking move which will herald major changes in the cellar and dispense sector of the pub trade.

Carlsberg-Tetley and Scottish Courage have unveiled plans to disband their respective technical service teams, which will be merged into a separate company, Serviced Dispense Equipment Ltd (SDEL), by next autumn.

A second company, Innserve Ltd, will also be formed to manage the servicing and installation of equipment on behalf of SDEL.

The two brewers say that the formation of one separate operation will improve efficiency, simplify the system and bring substantial cost savings.

Scottish Courage believes it will create more of a "one-stop shop" culture which will be far more licensee friendly, and will limit the number of different technical service teams arriving at pubs to service taps and dispense systems.

Managing director John Dunsmore said the announcement reflected the changing structure of the pub retail sector.

"In the old days, brewery ownership of pubs invariably meant only one brewer's products formed the vast bulk of what was stocked in a single outlet," he said.

"But today, multiple brand supply through the pubcos means a range of different brewers represented on bartops.

"It has meant different technical service teams servicing different beer taps in the samepub.

But our agreement with Carlsberg-Tetley now means this situation will be addressed."

The deal involves SDEL taking on an estimated £115m in assets.

Dunsmore added: "The launch of this new company is also very much focused on the drive for beer quality, announced by the industry recently.

"By giving licensees better technical services support, particularly in the area of beer dispense, we will be promoting improved quality standards and image for our products."

Dunsmore said the tie-up between Scottish Courage and Carlsberg-Tetley had been formulated over a number of years.

"As far as we're concerned, it will mean better service for licensees and considerable cost savings, which we can now divert towards other parts of our business.

"I believe, if it is a success, more brewers may follow our lead."

The proposals must first receive the regulatory blessing of the Office of Fair Trading and once a decision is given ­ in about four weeks ­ the two brewers hope to get the new service up and running by the autumn.

The new Serviced Dispense Equipment Ltd will be owned by the two brewers and operated by former Courage and Inntrepreneur Pub Co executive Mike Foster and ex Courage managing director Nick Bryan.

Innserve will be wholly owned by Foster and Bryan.

Scottish Courage stressed it could not yet respond in detail to licensee's queries and concerns.

"The formation of the new company is still awaiting OFT approval and has yet to be officially launched," said a spokesman.

"But in general terms the news appears to have been well received in the trade.

But fears are being expressed in some quarters that the long-term could see call-out charges and rental surcharges imposed on smaller-size beer kegs.

Pioneering move will be watched closely by others The UK's other two big brewers, Coors and Interbrew, will monitor the move with interest.

And it's likely some of the bigger regional brewers will also watch closely to see if similar integration can provide savings and benefits.

A number of brewers already combine delivery and dray services, especially when it comes to complex multi-brand pub company supply.

Coors Brewers says the C-T/Scotco deal is another example of the industry adapting to the changing retail marketplace and follows the development of one-stop-shop dispense solutions.

"Clearly, like any other significant development in our sector, we will continue to watch it with interest," said a spokesperson.

Federation of Licensed Victuallers Associations chief executive Tony Payne said he welcomed moves to unify the trade's fragmented technical services support systems.

"If this leads to more efficiency and cost reductions then it will be good news.