Carlsberg chief says forget about supermarkets

Licensees should stop worrying about cheap drinks in supermarkets and concentrate on what they can do to improve their own business — that's the message from Carlsberg UK chief executive Isaac Sheps.

Speaking to the Publican's Morning Advertiser, Sheps said that the price differential between the on and off-trade was a fact of the market and licensees need to look beyond it and to the "experience and pleasure" of a pub visit.

"There is an issue with (cheap drinks) and I don't think it can be changed as long as the off-trade is competing with each other furiously. What can they do?

"Me and my wife were astonished when we came to the UK as everything in the supermarkets is two-for-one or buy-one-get-one-free. That is how retail is working because of the competition. Who is winning from it? The consumers."

Alice in Wonderland​

Sheps urged licensees to focus on what they can do to improve their offer. "What I say to people in my company is where there are problems — let's not look outside, let's see what we can do."

Sheps said he often uses Alice in Wonderland as a way to emphasise this point when giving lectures on management. "Alice plays croquet with the Queen and she is constantly changing the rules. Alice says you cannot play like that, but the Queen says this is the way we play here.

"So, it is the same as having a market that behaves in this way and that way. Don't stay and whine about it — try and do something about it."

He added: "You see successful pubs, how come? They changed. Maybe they do less money on beer (and more on food) but it doesn't matter as long as people come in. I think that people should try and see what can be done."

On the recent 7.2% duty rise, he remarked: "The Government is milking a cow and we may end up with no milk."

Although he believes the British Beer & Pub Association is "doing a great job", he urged them to look at other lobbying organisations to see how they manage to successfully get their ideas over to Government.

Company develops show pub ​

Carlsberg has built on the success of its We Deliver More... programme for its on-trade customers with the development of a show pub at its Northampton HQ.

It will be used to help train customers how best to stock fridges, back-bars, and serve consistent beers.

We Deliver More has proved such a success in Britain that it will now be rolled out across western Europe.

"We are saying we are not here just to provide beers, but we can help you save money," said chief executive Isaac Sheps. "We want to do it for customers."