Brewers' defence against the downturn

St Austell

2008 saw a winter drinks pricing promotion, under which the price for a range of core products - its own brewed beers such as IPA and drinks brands from the South West company wholesales such as Budweiser, Carlsberg and Coca Cola - was reduced on the condition that tenants would pass the savings onto their customers, thereby hopefully driving footfall.

"We had to take a hit on margin to give our licensees something solid to pass onto the customer," says St Austell head of marketing Jeremy Mitchell. "They would be dropping Carlsberg from £2.80 a pint to £2.40 a pint, for example."

Hook Norton

The brewer has come up with a credit crunch-busting draught "house bitter". Affordable both for the company to produce and drinkers to buy, tenants have to commit to charging no more than £2.20 a pint. Hoping the scheme will drive footfall, approximately half the estate has taken it. Each pub is given the freedom to choose their own name for the beer and have a pump clip designed for them.

Hook Norton has also looked at the lower cost appeal of the off-trade when consumers' money is tight and taken the approach 'if you can't beat them, join them'. Bottled beer has been identified as a big opportunity to grow sales.

Managing director James Clarke explains that they are both ways for pubs to offer a greater range of seasonal and speciality products, and to push off-sales. Prices were restructured so that pubs can offer a two-tier system for take-away or drinking on the premises.

Shepherd Neame

"It was with some astonishment that my brewery sent out a letter the other day with a deal," Shepherd Neame tenant Chris Mclean blogs on ThePublican.com. "They have offered us a discount… on the products that matter most, on our main bitter [Master Brew], our main lager [Oranjeboom] and on Coke."

Mclean explains that, in signing up to the deal, he had to agree to sell the products at a pre-determined rate for six weeks. "Sign up, display the posters, sell the beer cheaper and you will get a big discount. Brilliant," he concludes.

Bankers Draft

Gloucestershire brewery Wickwar recently launched Banker's Draft. As the Chancellor punishes beer drinkers by hiking the duty on a pint to compensate for the VAT cut, Banker's Draft is being marketed as "the UK's first credit crunch beer".

The brewery has promised to hold its trade prices until at least this June, and hopes the topical humour of the beer will entice customers. It also has a heart-warming charity element. For every pint sold, two pence will be donated to charity.

Wickwar operations director Mike Flavin said: "We thought in these times of doom and gloom, it would also be great to be able to give something to those that are less fortunate, by selling a reasonably-priced ale to help raise money for charity."