News & Nuggets Special: Open Season

Mostly out of nosiness we’re always pleased to see brewers being honest and this week, with new year’s spirit in the air, has seen a bonanza.

First, though we missed it, there was this reflection on profit-per-cask of ale from Ade at Wishbone Brewery, based in Keighley, West Yorkshire:

We know Landlords feel pressure to sell beer at competitive prices, we also often wonder where the fairness is in the profit share between beer-making and pint-pulling as it often seems that pubs demand the lion’s share in comparison to what the brewery makes. (Includes brewery profit at approx £25 per cask)

Brewery Cask per pint including VAT (Blonde) = £1.20 (approx)
Pub served pint including VAT (Blonde) £2.70 to £3.20+ (estimate)
@ £3.20 per pub-pint that is £146 per cask profit for the pub.


Cloudwater growth chart 2015-2017.
SOURCE: Cloudwater

Then there was the Cloudwater blog post which, quite apart from the hot potato cask issue, also gave a top level run down of the brewery’s financial position (sales, growth, margins):

There’s another standout commercial difference I noticed on my trips to The States in these past couple of years – many of the breweries we hear and get excited about manage a staggering amount of direct retail, leaving UK breweries lagging way behind.  From West Coast breweries turning anything between 50-85% of their beer over in their own tap rooms, to East Coast breweries selling 100% straight off the canning line at retail value, the margins our American peers and friends are making are both impressive and powerful… So it’s without apprehension that I’ll say that by focusing on opportunities we have now, and will work to develop in 2017 to maximise the margin we make, we’ll put ourselves, and every business in our supply chain too, in an ever stronger position next year.


Kegs and casks behind the Free Trade Inn, Newcastle.

That prompted Steve at Beer Nouveau, a man who never shies away from providing detail, to go all in with a numbers-heavy post detailing the costs of producing, and profits from, casks, kegs and bottles of the same beer. He concludes with an intriguing suggestion about the purpose of draught beer, as a kind of marketing tool:

Putting your beer out on cask or keg doesn’t make you much money. We’d be looking at less than £500 a month. That would be my wages. Would you expect anyone to work 60 plus hours a week for that? But as breweries we have to put beer out on draught because that’s generally where the majority people first see and try it. And those first impressions are what are vital to us, because if someone likes our beer on draught, they’re more likely to buy it in bottles or cans. And that’s where we start looking at making a living wage. So as brewers we have to strike a balance between getting out names out there, and getting our bills paid.


Macro shot of 1p pieces with The Queen's profile.

Finally, today, we have a frankly worrying post from Dave Bailey at Hardknott — another brewer who has always worn his heart on his sleeve, for good or ill. Cynics might read it as asking for special treatment or pleading for pity-purchases but, based on our dealings with him, we’ve no reason to doubt Dave’s sincerity when he writes…

It seems to us the only thing that might help us to make a go of it would be to sell our home, downsize and in so doing release some capital. I’m going to be honest, this scares the living shit out of me, not least of which because although we will release capital our house is really efficient and low-cost, our bills are low, should we move into a draughty house we might see bigger bills, which we cannot afford on our non-existent earnings… Our house is on the market, and I’m hopeful that we will find a buyer this year. Our plan requires that we move and so I can no longer hide the fact that a move out of Millom is essential. I understand it is possible to find some quite nice caravans and this sacrifice will be worth it to save Hardknott. What if even that doesn’t get us on an even footing?


With our amateur historian hats on we’re going to file these posts away — they may well be vital evidence in a Where Did it All Go Wrong/Right analysis in a decade’s time. In the meantime, it’s worth reflecting on that common theme of the price of cask ale — is there anything we can do as consumers to convey the message to the Trade that, while we don’t want to be exploited, we wouldn’t object to people like Dave earning enough that they don’t have to live in caravans?

The Flat, Warm Pints of London Town

Illustration: a flat pint.

I didn’t realise I’d missed London’s characteristically headless, lifeless, lukewarm pints of beer until I had one on Friday.

It was brown, weary-tasting, with barely a fleck of scum on the surface, and yet… I kind of loved it.

I’m not saying this kind of thing is good, or that I wouldn’t have preferred something with a bit of condition given the option, but confronted with it in that moment, it resonated with my homesickness like the stink of a hometown factory.*

For many Londoners, perhaps less so now than it used to be, I’m sure this is actually a preference: no space wasted by mere froth, maximum possible booze for your cash. I remember friends from my sixth-form college and Leyton Orient supporting days grumbling if they were served even slightly foamy pints: ‘What’s going on ‘ere — are we up Norf or summink?’

I didn’t say when I Tweeted about it but the pint in question was at the usually very reliable Royal Oak in Borough, our favourite London pub these days. I stayed drinking there with friends until we got booted out so it can’t have been so bad.

But that’ll do me for a while — back to cool, properly conditioned beers with proper heads now, I think.

* Not an abstract example — Bailey grew up under the foul cloud of British Cellophane and gets sentimental when he smells anything similarly disgusting.

Questions & Answers: Why No Hand-pulls on the Continent?

‘How come the cask hand-pump system didn’t develop in mainland Europe? Or am I missing something?’ Jordan (@timelytipple), Berlin

Instinctively, we thought, yes, Jordan’s right — you don’t go into a bar or the local equivalent of a pub in France, Belgium, Germany or points east and see someone pulling on a handle to draw beer from a cask into the glass. In Cologne and Düsseldorf you might see a cask on a counter with a trickle-tap on its side, or a grand and gleaming keg font, but not this:

Gaskell and Chambers beer engine.
SOURCE: Advertisement in the Licensed Victuallers’ Yearbook, 1937.

But then we paused — was this always the case or are we, and Jordan, making the mistake of assuming that how it is now is how it’s always been?

Continue reading “Questions & Answers: Why No Hand-pulls on the Continent?”

News, Nuggets & Longreads 1 October 2016: Off-Trade, On-Trade, Hops and TV

Another hectic week for us — only one blog post! — but we have been keeping up with our reading. Here’s what grabbed us in the last week.

First, a big story that deserves some pondering: for the first time beer sold to drink at home has outsold that drunk in pubs and other licensed premises. Here’s the Morning Advertiser‘s report and there’s some commentary from Matt Curtis and Neville ‘Red Nev’ Grundy.


Cask Report cover detail.

This year’s Cask Report has a new author, Sophie Atherton, who provides some personal commentary on her own relationship with cask beer on her blog:

I didn’t have the knowledge then that I have now, but I somehow knew you had to look after beer or it would spoil and, at worst, end up tasting like vinegar. A skilled publican knew how to care for beer and made sure it was only ever served tasting the way it should. But it seemed as though there must be a shortage of skilled publicans because wherever we went, in whatever town, we kept being served, flat, smelly and often vinegary cask beer. So I stopped drinking it.

Continue reading “News, Nuggets & Longreads 1 October 2016: Off-Trade, On-Trade, Hops and TV”

QUICK ONE: BrewDog and Real Ale

BrewDog has just announced LIVE beer (their capitalisation) — a version of their session-strength Dead Pony Club packaged with live yeast and conditioned in the keg.

Of course they are obliged to present it as a great breakthrough, and deny that it’s anything like CAMRA approved real ale, for the sake of pride, just as CAMRA could only grudgingly approve of certain keg beers after much soul-searching. (See Chapter 14 of Brew Britannia for more on that.)

Live beer being poured.
SOURCE: BrewDog. Photo by Grant Anderson.

The thing is, quite apart from the fact we’ve been hearing gossip about this for months — tales of Martin Dickie and team earnestly studying cask ales with notebooks in hand in Scottish pubs, a false rumour of cask ale’s imminent reinstatement at certain BrewDog bars — it was inevitable BrewDog would do something with live yeast at some point.

Imagine the pickle they’ve been in since they made a big deal of dropping cask half a decade ago just as American brewers decide it’s the cutting edge of alternative beer culture.

Imagine how annoying it must be to know, in your heart of hearts, that beers with live yeast are interesting, are a part of tradition with a compelling story, are the beer equivalent of stinky cheese and sourdough bread, but that you’ve made it a point of principle not to do it in large part because your ‘brand values’ (modern, hip) are at odds with the Campaign for Real Ale’s (traditional, curmudgeonly), as well as for convenience. Not very ‘craft’.

Now CAMRA are finding a way to live with kegs (of a sort), and BrewDog are finding a way to live with real ale (of a sort), is it too soon to start dreaming of demobilisation and street parties? And might we see a BrewDog stand at the Great British Beer Festival in 2017?