A Ray of hope
Wickwar Brewery boss Ray Penny is a man with a plan. His business has just moved from micro to regional scale and he is passionate about its future. He spoke to Lorna Harrison.
At a time when many regional brewers are being forced to shed their brewing interests in order to concentrate on retailing - or shed their interests altogether - it's refreshing to hear from a brewer who's bucking the trend.
Former party DJ Ray Penny started brewing as a hobby 15 years ago and is now running the successful Wickwar Brewery in Gloucestershire. The brewery has recently moved from micro to regional scale, having just undergone a £1m refurbishment at its new home, giving it a brewing capacity of 300 barrels a week.
Speaking to Ray, it's clear that he has a passion for brewing and an excitement about the future that is rarely seen in small brewers nowadays.
He has plans to grow the business by increasing production from 150 barrels a week through national distribution and his next big step will come with investment in freehold pubs to create his own pub estate. He currently leases two pubs in Bristol city centre.
His real ales, including Bob (four per cent ABV) and Cotswold Way (4.2 per cent ABV), are gaining recognition both locally and nationally. The company has 350 freetrade customers within a 50-mile radius and deals with the likes of Waverley TBS, Arkells and Brains are ensuring the brand is seen further afield. Bottled ales are available nationally in leading supermarket chains including Tesco and Sainsbury, and Ray is looking at exports to places like Ireland and China.
So on the surface it's all looking pretty rosy for the small brewer, but it's evident that it has taken a lot of hard work and sheer determination to grow the business to where it is today. So what's the secret of his success?
"It's important to pitch the business at the right level," says Ray. "The industry is losing regionals and businesses are consolidating. Small brewers come in with the right ideas but if they haven't done their market research they won't be able to compete.
"We've done our sums right. I believe we are the right size, we have longevity and we look after our business. I don't want to be big. I want to be a good quality local brewer.
"The local market is the area I'm most interested in. Quality is important. Many real ales are dressed up in fangle-dangle packaging which is all very catchy, but if the quality isn't right it won't lead to a resale. Our packaging is consistent, our brand is strong but above all we have excellent quality to ensure customers come back for more."
Getting in on the act
Speaking to Ray, 53, you would think that he's been in the business all his life, but he stumbled into the venture at 38 following a car accident which resulted in him spending a fair chunk of his time in a local pub - convalescing.
"I'd been a DJ around the world in various venues and eventually became resident DJ at the Hilton in London. On my way home to Hemel Hempstead one night I had a bad accident and ended up spending time in a friend's pub and that's how I got interested."
In 1984 Ray moved to Bristol and took on a Courage tenancy at the Cadbury House, turning round what was a "dive".
After a few years he was in a position to take on three more tenancies and on the back of the Beer Orders, Ray and his then business partner in South Gloucestershire, formed the Wickwar Brewery in the tiny village of Wickwar to cater for those pubs.
"The change from tenancies to leased agreements forced me to ditch the pubs over time and brewing became my life," says Ray. "We had the idea, we found the site in an old cooper's shop in Wickwar and the brewery was founded.
"Following the Beer Orders, when the market opened up, we saw an initial boom which declined when the leased market took hold. Around 1993 we were losing customers overnight and production dipped. However, we kept at it."
The big change came in 2001 when Ray decided to split from his business partner and expand the brewery. The plan was to move into new premises across the road - the site of the original Arnold, Perrett & Co Brewery dating back to 1860.
The move brought opposition from several residents who, rather than be pleased that the original site was to open once again as a brewery, complained to the local authority about the change of use from a wine warehouse.
It was make or break for Ray and, to his relief, plans were approved and the company has occupied its newly-renovated Victorian brewery site for almost a year.
Fighting talk - and some tips
"The next phase in our evolution is marketing," says Ray. "We need to keep up the marketing and make sure our name is around so people know us for our fabulous beers. We want to boost our brewery production and get listed with and build our network of wholesalers.
"Real ale has always been there and will always be there. Other drinks come and go but real ale will always provide a good business at a certain level. The days of mass produced ale will go and you will be left with the regionals like Young's and Greene King. "The biggest stumbling block is access to the market and I think there should be further beer orders to stop companies like ours being blocked from certain pub estates."
So what are Ray's tips for anyone who's been inspired by his story and wants to set up a similar business?
"You must do your market research," he explains. "If you can stay small enough you will enjoy a great industry. Sadly, the small operators are disappearing because they lack access to market. I wouldn't recommend anyone coming in at the level I am at now. You've got to have an established product first and build on that.
"We have succeeded through non-complacency and a real passion for what we do. There are a lot of positives and a lot of negatives but you have to know what the negatives are to know whether you're having a good day.
"This is my baby and I've created it, not with foresight but from a dream that is now a reality and I'm not going to allow that dream to be scuppered by anyone."
