With the future of British pubs looking uncertain in the face of stiff leisure competition, The Publican gathered together some top industry names to discuss the issue.
There can be little doubt that the modern British pub is not what it used to be. Where once it was the centre of a community, the focus for a night out, now it is simply one of many options for consumers. And it is in danger of losing out in the battle for the hearts and minds of these consumers. After all, there are far more claimants to the leisure pound; be it Sky TV, cheaper cinema tickets, or people treating restaurants as a regular way to unwind rather than a treat.
Consumer research released by specialist marketing company Box Marketing has shown the modern pub is not satisfying the consumer. For example, more than 75 per cent of consumers said they felt pubs were more interested in selling what they wanted rather than providing a better range for customers.
This is an issue that has been looked at from all sorts of angles but, together with Box Marketing, The Publican put together a forum of drinks industry experts - from brand owners to licensees - to discuss this issue.
We gathered them together in The Publican's offices in London to discuss what it is about a pub's drinks offer that needs to be improved in order to compete in today's cut throat retail environment.
Training
If one thing shone through from the two representatives from Budvar UK, it was their huge frustration with the level of staff knowledge in the industry - something both CEO Tony Jennings and marketing manager Luke Wade put down to poor training.
"There needs to be better training of barstaff," said Tony. "History of the brand is a vital issue for us and if the bartender isn't trained, that point of difference we can offer the pub is going to be lost.
We rely on the staff to get the message across."Luke Wade was more blunt. "Look at what a butcher offers in terms of product knowledge. He knows every cut of meat," he said. "Licensees and barstaff are the ambassadors of our products and yet I've been into so many pubs where they don't even know the ABV of their beers."
However, this did lead to some debate over the relationship between brand owner and pub. Dan Slark said: "We do get feedback from pubs that feel neglected by brand owners. They need to take more responsibility for what goes on in the pub." Licensee Mark Corrigan backed this up, suggesting he saw far fewer brand reps in his pub now than he used to.
However, Darill Ling was keen to point out why it was sometimes difficult to forge closer relationships with licensees and managers. "Small brands do struggle to get into pubs - in much the same way as we do at a grocery level," he said. "Some of the chains bandy about figures that are just preposterous. If it makes sense to invest then of course we will do it. But we will not do it just to make sure that head office has got some new furniture next week, which is how it feels sometimes."
Choice
The beer tie was a source of frustration to both licensee and brand owner alike at the forum. However, further discussion found that there was a deeper problem, which was even those pubs that weren't tied were becoming reliant on the big brands as they looked towards profits and away from choice.
Mark Corrigan admitted as much, suggesting he could not afford to stock "quirky" brands on his bar - he needed products that were going to sell quickly.
Bill Hart felt that this was a growing trend. "Because making money is so important, people are not taking risks and they are very reluctant to put something new on that shelf for Joe Bloggs to try just in case he doesn't like it," he said. "So they go for the easy option - stock that is profitable. The industry should be about innovation and we need more innovation again."
According to Mark Todd, this "safety first" attitude is impacting badly on the trade: "The industry just hasn't caught up with the public yet. The public is going all over the world on cheap flights and they are drinking new and interesting things. Then they come home and it's a bit like McDonald's. Every pub has the same thing - so in spirits terms it's Smirnoff, Baileys and Bacardi. They are all fine brands but there is nothing there to wow the customer."
Adaptability
A constant theme that arose from the debate was that pubs are too one-dimensional. Graham Abbott from Box Marketing said pubs needed to learn the lessons from the high street.
"I don't think community pubs are doing enough to attract local people into their pubs - especially during the day. They are not catching onto this Starbucks/Costa culture. A lot of people just don't want to drink alcohol during the day."
Andy Slee from Coca-Cola accused brand owners of constantly chasing the youth market at the expense of some valuable older customers. "As brand owners we are guilty of focusing too much on the 18 to 24 market. Nearly two-thirds of people who go to the pub every week are over 30. We've got an ageing population and that is where the volume is. People start going back out to the pub again once their kids are a bit older - and that tends to be when they are in their 40s."
Mark Todd, however, felt that licensees and brand owners needed to examine their feminine side more thoroughly. "We have to focus on the female market now. The feedback we got from females at some recent trade shows was they don't really want to go to pubs.
The industry is in a sense still stuck in a bit of a time warp. What is there promotionally that is aimed at females at times when they will be in the pub?"
Attending:
- Tony Jennings - CEO, Budweiser Budvar
- Luke Wade - marketing manager, Budweiser Budvar
- Mark Todd - managing director, KC Brands
- Andy Slee - director, Coca-Cola Enterprises
- Dan Slark - director, Box Marketing
- Mark Corrigan - licensee, Saville Arms, West Yorkshire
- Graham Abbott - director, Box Marketing
- Darril Ling - director, Monin and Finest Cool
- Bill Hart - licensed trade consultant (licensed trade consultancy)
- Nick Rines - MR Communications (chair)
- Bill Hart - WSH Sales & Consultancy