Pubs must offer more
With the UK on-trade evolving at pace, it's time for pubs to start thinking like supermarkets. And what the supermarkets are good at is giving the customer what they want, at a price they're prepared to pay.
With the evolution in the on-trade taking place at such speed, those who succeed will be the ones that adopt this philosophy. However, licensees need to be mindful that it's not just the market that's being re-shaped, the consumer is changing too. It's all about choice, which has never been greater.
If the consumer doesn't feel they're receiving value for money, they'll simply choose to go elsewhere - customer loyalty is no longer a certainty.
Therefore, a licensee's wet and dry offering has to be right, in terms of choice, quality and affordability - the consumer doesn't necessarily mind paying that little bit extra if they can be guaranteed a good experience, enjoying quality products, in comfortable surroundings.
As we move toward implementation of the smoking ban it will be the good licensees who will succeed - as we've seen in Ireland, where the majority of pubs are owner-operated.
There the good licensees have recognised that they have a business that must appeal in every sense to the consumer and are aware of their competition. However, in this market the competition doesn't always mean the pub down the road - it is increasingly the supermarket, where people can buy large quantities of beer and wine at prices the on-trade simply can't compete with. It is for this reason that licensees need to offer the consumer 'an experience', something retailers can't compete with. If the venue and its offering meets the consumer's expectation, they will pay that little bit extra if they consider it to represent good value for money.
The 187ml wine category now represents the fastest-growing area in the on-trade wine sector - success which has been driven through the sale of high-quality branded wines.
The fact that the wines are familiar high street brands is key to The Minicellar's popularity. These brands instill confidence in the consumer, making them feel comfortable with what they are buying. And when served in a 175ml glass, it represents great value for money - a healthymargin is also earned by the licensee. A real win-win.
Geoff Read is chairman of Read's World of Wine, which supplies its Mincellar range of branded quarter bottles of wine including brands such as Gallo and Jacob's Creek across the trade.
