The heart of it
The brewery contains the very soul of St Austell - as Lorna Harrison reports.
In today's climate, the heart-wrenching decision to quit brewing and concentrate on more profitable retailing is something that's been at the back of the mind of every regional brewer. Many have thrown in the towel to refocus on their pubs. This has seen the loss of some big brewing names over the years including Brakspear, Heavitree and Eldridge Pope.
But St Austell Brewery is adamant that brewing will continue, even if it may not be in the company's best interests.
"Getting out of brewing is not an option - although we'd make more money by doing so," says estates director Adam Luck. "The brewery is at the very heart of our business and to lose it will be to lose the company's soul."
Managing director James Staughton, great-great-grandson of the brewery's founder Walter Hicks, adds: "We have a real advantage because of the sense of family within the brewery. It's not just generations of shareholders who remain loyal, but our staff have been with the brewery for many generations and we continue to recruit family members, many of whom stay with the company for years. We share values which continue to drive the company."
The emotion tied up in the brewing arm of the company is helping to drive its brands. There's been renewed emphasis on national sales following the success of new beer Tribute. This has helped boost barrelage from 18,000 to 25,000 a year and Adam sees no reason why this figure shouldn't hit 30,000 in two years' time.
It is also a contributor in the company's sales figures, showing £8.2m profit on a turnover of £77m - up four per cent on the previous year.
There's no doubt that Cornwall is a difficult area to trade in. In certain areas trade is seasonal and competition is tough. But Adam (pictured) remains confident: "Trade is faring pretty well despite the adversity we face in the industry. It's tough but there is lots of optimism."
Owning 157 pubs, the brewer is the largest wholesale distributor of beer, wines and spirits throughout Devon and Cornwall, and distributes a full range of national brands.
All of its pubs, which include 36 managed, are situated within the two counties and while the estate has remained fairly static for several years, the company is keen to expand throughout its heartland.
"We have to grow and we certainly don't want to stand still," says Adam. "We've only grown from 129 to 157 in 25 years so it's not a case of looking to double our estate - but we need to acquire.
"We have introduced innovation into retailing, which has come as a surprise to some. We invested a lot in the 90s into new trendy hotels and style bars, steering away from the bog-standard boozer which people saw us for. We've been the forerunners on training and the whole focus for the team is to look forward and develop."
St Austell is one of the pioneers of good staff training, winning many awards for its recruitment and staff retention as well as being accredited by the BII as one of the top training centres.
Training and recruitment director Vicky Crossingham says: "We cannot be complacent. We have huge freetrade competition in our region and it's important that we invest in training staff to reach their full potential and help support them on the challenges they face on industry issues, particularly in the absence of strong trade associations.
"We act as ambassadors for licensees and feel that we can offer a one-stop shop on business advice."
The brewery celebrated its 150th anniversary in 2001 and it's clear that the traditional roots and working ethos is there to stay. The company plays hard on its brewing history and with an overwhelming emphasis on people, it's a winner with the locals. St Austell is an incredibly proud company which builds on its close links with employees to achieve business success and wants to be recognised for the right reasons by its customers.
"Research has shown us that we are part of the fabric of Cornwall," says Vicky. "We are seen as a brand standing for quality, tradition and innovation and we feel that sums us up nicely."
St Austell Brewery
- Founded: 1851, by Walter Hicks, who mortgaged his farm for £1,500 to set up the brewery
- Estate: 157 pubs and hotels, including 121 tenancies, 5 leases, 36 managed pubs
- Free trade: 2,000 accounts
- Employees: Almost 1,000
- Annual turnover: £77m
- Main beers: Tribute (4.2 per cent ABV) HSD (5.0 per cent ABV) Tinners (3.7 per cent ABV) IPA (3.4 per cent ABV) Black Prince (4.0 per cent ABV).