Green growth

Green, as everyone knows by now, is the new black. Businesses are paying heed to environmental issues, and it's not just about appeasing tree-hugging consumers either, although it works in that regard. It makes sound commercial sense.

Brewers have cottoned on to both the economic and public relations benefits of improving their working practices, with a number winning awards for their innovation in distribution and production methods.

As well as guiding his own company through the difficult period of adjusting to the highs and lows of the smoking ban, Shepherd Neame chief executive Jonathan Neame is clearly determined to spend the next year making sure the Kent brewer is one of the most modern and energy efficient set-ups around.

As he put it when the brewer announced its annual results recently, "to compete effectively as a brewer and to maximise the potential of our brand portfolio we need to continue to modernise our brewing plant and update our business processes". Quite.

Shepherd Neame is not alone in seeking this goal, with the likes of Southwold's Adnams and Charles Wells in Bedford already well on the path to a greener future.

But that an old-school brewer like Sheps, steeped as it is in tradition with its 'roses-round-the-door' estate, should strive to be at the cutting edge of operational practice may come as a surprise to some.

Can do both

Neame argues that a business can at once be mindful of the need to be up to date in its operational practices while retaining those aspects that appeal to its customers' sensibilities.

Modernisation, cost control and the economic benefits that can accrue from being environmentally savvy are key drivers for today's brewers, and that includes the one claiming to be the UK¹s oldest.

Already the recipient of ISO 14002 ­ an environmental standard ­ plus a national business award for corporate social responsibility and the Queen¹s Award for Enterprise: Sustainable Development 2006, Shepherd Neame is "constantly striving to maintain and improve our position as the UK's 'greenest' brewery using less water, less electricity, making less noise and making fewer road journeys".

As if to cement its green credentials, more than 50 members of Shepherd Neame's staff have been given free bicycles to travel to work.

Meanwhile, as part of its ongoing commitments to improving its own internal workings, the Faversham-based company says it is on track with what it calls its 'Enterprise Project'.

"Our current systems and procedures have evolved over many years and no longer meet the needs of the business or our customers," said Neame. Systems were fragmented and inefficient, he said, and the Enterprise Project should change all that.

"Whereas before we had different reports for different aspects of the business, once the project is completed we'll have a single flow of data across the business, covering forecasting, purchasing, repairs, customer service matters and so on," he said.

Getting results

The result will be "better data and financial savings, plus more visibility across our business", he added.

As with all these things, such change won't come without a cost. The process so far has cost in order of £3.4m, and is only half finished. Neame said the need to extend the original remit of the project became clear as it developed, consequently it will take longer to finish than originally envisaged.

The brewer will also "incur significant further costs in 2007/08, but [the process] will lead to greater efficiency from then outset".

He declined to say how much the whole shooting match will cost, but confirms the process will be completed by the end of 2008.

And, as it tussles with creating the Shepherd Neame of the future, the group has to contend with the issues of today. The most pertinent, of course, is the smoking ban. The brewer says it has spent around £9,000 on each of its 375 pubs in the South East, creating new space and other smoking solutions.

Neame recognises the coming winter is "unknown territory" for the licensed on-trade, but he's relatively comfortable nonetheless.

"Yes, it's a challenging environment and the first winter could be quite difficult. But I think we'll see a modest recovery in the second year, as has been the case in Scotland, while in years three to five we'll see handsome growth." Pubs, he said, "have been around for a while and one bad winter won't kill them off".

He also thinks that contrary to popular theory, small, well-run outlets will benefit from the ban as they will "retain their nice atmosphere, but without all the smoke".

Time, as they say, will tell.