Heineken tackles range and price points

"It's clear from the initial visits that each of the outlets face very different issues and challenges when it comes to selling beer," says Chris Duffy, Heineken UK's customer marketing controller. "But for all of the licensees, beer accounts for around at least two-thirds of their wet sales making it a key contributor to their businesses and it's an area they are all keen to develop.

"At this stage it's all about getting the basics right and that means taking a look at the beer range, pricing policies and quality of serve at each of the outlets and making suggestions on how these could be adapted to:

- improve the perception and image of the pub to attract the right customers

- enhance the physical appearance of the bar area

- provide a balance between offering their customers a good range of draught beers to choose from without compromising on quality

- provide a pricing ladder which offers customers choice at different price points and can encourage trading up."

From Heineken UK's perspective, range rationalisation and cutting out the clutter is top of the agenda for Mark White, licensee at the Cross Keys​ in Suffolk. Duffy says: "The Cross Keys is suffering a bit of identity crisis - Mark needs to bring some definition and focus to what he is offering and the type of customer he wants to attract to his pub. Every space around the bar area is crammed with stock. The choice is overwhelming - he really needs to resist deals and focus on offering a good core range of brands."

There are four distinct areas within the pub: the restaurant area, which is the largest room and attracts a reasonable lunchtime trade from older customers; the main bar which has a pool table and is popular with a younger crowd in the evenings; a small snug area; and a fantastic garden which is accessed via the restaurant.

Duffy says that having the different areas provides scope for Mark to develop both his lunchtime and evening trade by tailoring his beer range to appeal to the different drinking occasions.

"For example," says Duffy, "in the restaurant bar, which is also the closest bar to the garden area, the three brands on offer are all standard beers - two lagers and an ale. Yet, when people are enjoying a beer with their meal, they often opt for a premium brand and a dining area and outdoor environment are perfect opportunities to encourage customers to trade up. This is certainly something we'll be taking a look at along with Mark's pricing structure which runs from £2 a pint for draught standard lager through to £2.70 for a premium."

On the high street​

At the other end of the spectrum, Sue Perkins at the White Hart​ in Hull is just getting to grips with her newly acquired high street pub and the current beer offering is simply a choice of three draught lagers - one premium brand and two 4 per cent ABV lagers. There are no ales and no bottled beers as there are currently no chillers in the bar.

"We are almost starting with a blank sheet of paper with The White Hart," says Duffy, "but the pub is about to undergo a complete transformation as Sue aims to develop a thriving lunchtime and early evening trade by attracting professionals working in the areas close by.

"So we need to take into account the immediate range requirements with plans for developing the range longer term to suit The White Hart's target customer base. With this in mind, we support Sue's decision not to stock a standard lager, but the current low volumes don't warrant stocking three draught lagers.

"We would recommend that, at this stage, Sue offers just one premium and one premium sessionable draught lager to maintain quality, and that she expands the range by installing a chiller and offering a range of world beers which will offer a point of difference and appeal to her potential customers and would also offer scope for pitching brands at different price points. Then as business and beer volumes pick up we can look at extending the range of draught lagers and ales."

In the community​

Paul Barden, licensee of the Guide Dog ​which is located close to Southampton football ground in Hampshire, is also very focused on his customer base and what attracts customers to his pub. A poster in the pub proudly points out "We're in It!" referring to the fact that The Guide Dog appears in the CAMRA Good Beer Guide. Beer sales are very much at the heart of this pub which has a wet/dry split of 95/5 with 95% of the wet sales coming from beer.

A good selection of cask ales, mostly from regional and small brewers, form the backbone of the Guide Dog's range and this is supplemented by a bottled range of imported, fruit and wheat beers. Two draught lagers are on offer - one premium and one standard brand.

Duffy says: "Paul has done a good job in establishing the Guide Dog's reputation for serving good beer. Given his customer profile, cask ales understandably take priority, but his draught lager offering could be improved so that it is a better fit with the traditional craftsmanship associated with cask ales and specialist bottled beers.

"His customers obviously know their beers and clearly seek out brands with heritage and that offer something different and this should be reflected in his lager line up. Paul is wary of stocking 'strong' lagers as he believes they attract the 'wrong' sort of customers who would put off his regulars. We're suggesting that he switches his existing draught premium lager to Heineken which, as a genuine import, offers the brand authenticity which his regular customers appreciate, and that he replaces his standard draught lager brand with an imported 4% ABV lager which is more in keeping with the approach Paul has taken in creating a point of difference for the rest of his range.

"There are also some anomalies in his bottled beer pricing - for example a bottle of pils carries the same price as a wheat beer - which we would recommend reviewing."

Graham Bulpett at the Priory Arms​ in Stockwell, London is another licensee who places a great deal of emphasis in stocking beers which stand out from the crowd. Again there's a big focus on ales and you are greeted by displays of cask ale badges decorating the bar area, which clearly sends out the signal that if you are interested in beer you've stepped into the right pub.

As well as the five or six cask ales on offer - including a couple of guest beers, there's a range of six draught lagers ranging from San Miguel to Baltica plus an extensive range of exotic bottled beers which Graham has personally sourced from the internet. "In fact," says Duffy, "one of the first things Graham said to us is 'What have you got that's different?' and that really captures the essence of the pub."

Duffy explains that the Priory Arms is in a superb location to develop its business. It's in an area which has a concentration of Victorian terrace houses populated by young professionals and council houses with more mature residents.

"Offering a wide range of beers is important to Graham and the volume sales on most of the lines appear to justify the extent of the range, although we'll be taking a closer look at the rates of sale of one or two of the slower selling lines to see whether they really deserve their space on the bar.

"In terms of recommendations, we have to say that the Priory Arms absolutely fits all of the criteria we look for when we consider installing Heineken Continental Serve - it ticks all of the boxes in terms of style of venue, the emphasis on offering a selection of continental and world beers, volume throughput, customer profile, the fact that Graham is planning to develop a restaurant upstairs, and even the way they take care of their beer.

"In turn, we firmly believe that Heineken Continental Serve would provide a perfect complement to Graham's existing continental range and add yet another dimension to the Priory Arms' burgeoning beer portfolio."

Du