Global's star starts to shine
Until its recent acquisition of the 108 year-old Walsall-based Highgate Brewery, few people had heard of a pub group going by the name of Global Star.
Not that this particularly fazes Global's chief executive Wayne Toon. In fact he almost prefers it that way, noting that he's not bothered about not being quoted on industry issues or the business being in the public eye.
But all that might change. Global bought the famous 60,000 barrel-capacity brewery and ten pubs from cider producer Aston Manor for an undisclosed sum earlier this month and the deal has raised the profile of the Midlands-based Global. It takes the pub group to another level, as Toon acknowledges: "The brewery completes the circle for us. It gives us what we need."
What the deal means for the fledgling pubco is that it will soon able to meet much of its own beer demands, rather than have to deal with large beer producers for whom Toon appears to harbour little in the way of goodwill.
"I'm sick of being dictated to by certain brewers," Toon says, noting that perhaps it's his history of being a drinks wholesaler that means he was treated differently from other pubcos. "We haven't been wholesalers for five years. We've moved on a lot since then," he says.
Global was created in 2002 via the joining forces of Toon, then a sole trader, and another wholesaler by the name of Empire Star. The new group spent the next couple of years picking up pubs and a nightclub via a series of off-market deals.
Initially Global looked at pubs as property assets, Toon says, but this is no longer the case. "The Highgate deal gives us a new angle. It allows us to move forward and one of the aspects in that progress will to become a more food-oriented estate."
Toon says he heard that Aston Manor were looking to sell and approached owner Peter Ellis, son of Doug Ellis, former chairman of Aston Villa football club. "They'd had lots of approaches for the brewery, but liked what they saw with us," he says.
Toon also liked what he saw at Highgate, with its small estate of good quality pubs and its range of beers, featuring the famous Davenport portfolio, which includes its popular mild range.
Investment of up to £3m will be ploughed into the business to push the operation to its fullest potential. "There's some contract brewing in there but we're looking to increase the overall production from the current level of 23,000 barrels a year," Toon says. Additionally a new bottling plant is set to come on stream soon, capable of filling up to 1,200 bottles an hour. Up to 15 new jobs will be created too, he says.
Toon believes the growing interest in cask ale will give a boost to Highgate's portfolio. "We want to get Highgate mild into much of our estate. People might say that as a type of ale mild has had its day, that it's not sexy. But we think there's a lot that can be done with the product. You only have to look at the Boddingtons campaign with Melanie Sykes to see how you can make beer like this interesting."
Highgate has been producing 22,000 barrels a year and this will increase, he says. Toon hopes to target the under-25s and women drinkers, riding the wave of popularity in unique ale products that offer points of difference.
Meanwhile Toon is to set about the Global estate itself. "With the Highgate sites we'll have 113 pubs," he says. "I want to see us get rid of around 20 per cent of the estate during the next 18 months and move towards the premium, food-led end of the market."