MyShout

If last year was a challenge, then 2007 will be a defining year for the on-trade, says Willie Crawshay

You could be forgiven for thinking that somebody, somewhere, has it in for the licensed on-trade. Government Ministers, health officials, senior police officers and even our friends at the Daily Mail have been queuing up to give our industry a good kicking.

But, with character and fortitude, the UK on-trade has weathered the storms of 2006. Many critics predicted Armageddon on our high streets as new licensing rules came into force - far from it, encouraging signs show that drinkers are slowly adapting to the more leisurely approach to opening hours. We also saw further evidence that the on-trade has thoroughly cleaned up its act in terms of irresponsible promotions and pricing deals.

What of the challenges in 2007? As of July, we will see a smoking ban in public places throughout England and Wales, following a similar ban introduced in Scotland last year. I think we will also see a continued rise in our business costs.

Let's be very clear here, taken together, these will cause major disruption to our businesses and we will all need to work hard to adapt and survive.

So, what can drinks producers, such as S&N, do to help pubs and bars to better compete for custom?

First, we can keep our price increases to a minimum and only raise them once a year. In my column last year, I challenged other producers to keep their price increases to RPI or below. Unlike others and for the third consecutive year, S&N will keep its increases on beer and cider to the prevailing RPI rate (currently 3.9%). Furthermore, we will only apply our increase to the duty-exclusive element of our price, thus further minimising the impact on trade customers. Despite my plea last year, we are still seeing certain producers deceiving their customers and consumers by quoting the lower duty-inclusive figure, or allowing it to be quoted on their behalf.

We can provide a source of advice and assistance. S&N has worked successfully with a range of pubs and clubs in Scotland to develop outside areas or other aspects of the offering such as food, thus maintaining business from smoking customers and attracting new ones to the venue. Our field sales team have already begun this in England and Wales as licensees plan for the ban. Our lesson from Scotland is, you can't plan for this too soon, and you will almost certainly need to invest to maintain trade. Sadly, we have already seen the bleak effect in Scotland on clubs and pubs that have taken the head-in-sand approach.

Finally, we can speak up for the industry. S&N has been particularly vocal during 2006, not in attacking supermarkets, but by calling for a reasonable approach to take-home pricing and for cross-industry initiatives to tackle binge drinking. Indeed, others have taken up the call too, with both CAMRA and the All Party Parliamentary Beer Group calling for sensible pricing.

By any measure, 2007 will be a defining year for us in the on-trade. One thing is certain though, the resilience and adaptability of independent pubs and bars will shine through once again.