Brewer's views on 2012
Simon Buckley, chief executive of the award-winning Evan Evans brewery, based in Llandeilo, gives his views on what 2012 holds -
Next year is going to be a year of uncertainty - and not a year for taking undue risks.
The brewing industry is under attack from central and local government, with increased beer duty, fuel cost, rates, and red tape.
2012 will be a year for increased efficiencies and investment in process control to make the brewing of beer more efficient and to reduce costs. We are also looking to increase distribution outside Wales and to look for new opportunities with new brands.
We will be launching our Archers brands and a new organic beer brand. Despite the caution, our customer base continues to increase and our forward sales for 2012 are significantly up on the same period last year. Whether volumes will deliver on those contracts will remain to be seen.
We are investing in a new packaging and bespoke bottling plant to allow us to enter new markets and to direct sell our bottled beers to our beer club members.
The pub market will remain difficult and, sadly, many of the rural pubs that are hanging on by a thread, will fall by the wayside and close.
Bad debt is going to increase particularly in February. Informal eating is the way forward with a strong real ale offering. The good pubs serving good sensibly-priced, locally-sourced food will continue to do well, with a discerning consumer price watching and seeking the better value-for-money deals. This does not necessarily mean cheap.
There will be no opportunity for margin enhancement other than by increased efficiencies. I suspect tourism will be driven by what happens with the Euro, but whatever happens we are going to have to work harder than ever for our customer share as hotels fight for bed-nights.
One thing is for sure 2012 is not going to be easy.
Evan Evans, which this year sees the Buckley family celebrate 245 years of family brewing has now become the leading specialist cask ale brewer in Wales. Website: http://www.evanevansbrewery.com
Next year is going to be a year of uncertainty - and not a year for taking undue risks.
The brewing industry is under attack from central and local government, with increased beer duty, fuel cost, rates, and red tape.
2012 will be a year for increased efficiencies and investment in process control to make the brewing of beer more efficient and to reduce costs. We are also looking to increase distribution outside Wales and to look for new opportunities with new brands.
We will be launching our Archers brands and a new organic beer brand. Despite the caution, our customer base continues to increase and our forward sales for 2012 are significantly up on the same period last year. Whether volumes will deliver on those contracts will remain to be seen.
We are investing in a new packaging and bespoke bottling plant to allow us to enter new markets and to direct sell our bottled beers to our beer club members.
The pub market will remain difficult and, sadly, many of the rural pubs that are hanging on by a thread, will fall by the wayside and close.
Bad debt is going to increase particularly in February. Informal eating is the way forward with a strong real ale offering. The good pubs serving good sensibly-priced, locally-sourced food will continue to do well, with a discerning consumer price watching and seeking the better value-for-money deals. This does not necessarily mean cheap.
There will be no opportunity for margin enhancement other than by increased efficiencies. I suspect tourism will be driven by what happens with the Euro, but whatever happens we are going to have to work harder than ever for our customer share as hotels fight for bed-nights.
One thing is for sure 2012 is not going to be easy.
Evan Evans, which this year sees the Buckley family celebrate 245 years of family brewing has now become the leading specialist cask ale brewer in Wales. Website: http://www.evanevansbrewery.com
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