Palmers eyes positive future for pubs

Dorset firm Palmers upbeat over cask ale's prospects, but urges Government to help traditional brewers, says Roger Protz.

It was once a question on Mastermind: "Can you name Britain's only thatched brewery?" The answer is Palmers of Bridport, a family-owned company in Dorset that, as well as thatch, has a water wheel and a superb seaside location.

The brewery dates from 1794 and has been in the Palmer family since 1895. If you listened to the siren voices of the City of London, it's the sort of company that should have disappeared years ago. But Palmers is proof that a small brewery rooted in cask beer can survive and flourish in these difficult times.

A thatched roof and water wheel should not give the impression that Palmers is living in the past. As I toured the site with head brewer Darren Batten it was clear that the company has invested in modern equipment.

There's a smart mash tun that replaced an antiquated vessel, while malt mill, cooling equipment and cask washers are all new.

This is a brewery that has its eye firmly on the future, though any lover of tradition will revel in the sight of a proper boiling copper that is actually made of copper, while some of the open fermenters are "rounds" — impressive wooden vessels held in place by iron hoops.

There's no corner cutting at Palmers. Batten uses Maris Otter malting barley, a grain abandoned years ago by big farmers and maltsters in favour of higher-yielding modern varieties. But Batten knows Maris delivers the finest biscuity flavour to beer and is prepared to pay a premium for it.

The mainstay of his hop supplies is another tried-and-trusted English variety, the Golding, though this is supplemented by more modern versions in the shape of First Gold — a new hedgerow hop grown in England — Styrians from Slovenia and Cascade from the United States.

The brewery can, at full bore, produce 10,000 barrels a year. The core beers are Copper (3.7% ABV), Best Bitter (4.2%), Dorset Gold (4.5%), 200 (5%) and Tally Ho! (5.5%). Gold is a new golden ale and selling well, though Copper is also showing considerable growth, accounting for 40% of sales, and is proof that drinkers are not abandoning "old-fashioned" bitters in favour of lighter-coloured beers.

Growing presence​

The company is run today by John Palmer, managing director, and his younger brother Cleeves, who is sales and marketing director. They own 55 pubs and have 300 free-trade accounts, with sales divided 48% tied and 52% free.

The pubs are predominantly in Dorset but there is a growing presence in Devon and Somerset and even two regular outlets in London.

Palmers avoids pub companies and supermarkets. The brewery has a much-admired Wine Shop on site that stocks 900 wines and also sells draught and bottled beer and the company's own-label whisky both to visitors and also online. The brewery and shop get around 3,000 to 4,000 visitors a year.

John Palmer believes in controlling both on and off-sales and is chary of dealing with supermarkets and pubcos. "Every new Wetherspoon or M&B outlet takes 10 local pubs out of business. Wetherspoon's tactic is to put one of its pubs in every regional brewer's town," he says.

"We don't supply Punch, Enterprise or Matthew Clark as we wouldn't make profit. We invest shed-loads of money in our pubs and plough the money back into the company. We're not on a trading estate — we have an old brewery to maintain."

"Shed-loads" in hard cash amounts to around £2m a year. A new pub, the Thimble Inn in Piddlehinton, Dorset, has been bought and all Palmers' pubs now sell food. In this remote part of the West Country, some demands on the brewery are unusual. The Ilchester Arms in Symondsbury, Dorset, bought some years ago from Michael Cannon, needs a new thatched roof that will cost £40,000, not a problem that confronts many JDW pubs.

Testing few years​

Cleeves Palmer believes trading will be "testing" for a few years. He says overall sales grew by 20% in 2010, with the free trade recording a 30% rise. But sales slowed in the autumn and winter was bad — drays delivered beer to all but one of the local accounts but customers couldn't get out of their homes due to snow.

But he is upbeat about the prospects for Palmers and cask beer. "Lager won't be bigger than ale in pubs — people won't pay the difference," he says.

John agrees, but feels there's a need for the Government to help traditional brewers. "If the Government keeps on taxing beer the number of pubs will continue to fall," he says. "Only big pubs will survive, but they're not good traditional pubs."

Both the Palmers feel the Government should consider a variable rate of VAT, with different rates for beer sold in the off and on-trades. "That would help pubs," John says.

The brothers between them have six children. There's no pressure, but they are confident the brewery will continue in family hands.

And if you need to know why brewers such as Palmers must survive, visit the Fox & Hounds in Cattistock, Dorset, run with enormous enthusiasm by Scott and Liz Flight. It dates from the 16th century, has beams, flagstones, open fires, a skittle alley and excellent food.

A glass of Palmers Best in the Fox & Hounds convinces you the world is not such a bad place and that good beer and good pubs will endure.