The Changing Structure of UK Brewing and Pub Retailing

Abstract

This article charts the major structural changes that have occurred in both UK brewing and pub retailing during the period 1989–2000. A key theme has been the rapid consolidation of the brewing sector in an attempt to achieve economies of scale in production, distribution and marketing. The dominance of the national brewers has allowed them to place increased product emphasis on marketing and me power of brands — particularly lager, me national breweries control all me major lager brands. In tandem with these brewers, me growth and dominance of me national pub chains has garnered apace over the past ten years and in order to maximise profit margins they have established supply arrangements with me national brewers; it has been in the interests of these chains to limit choice thereby maximising the discounts received from their suppliers. The article therefore shows that regional and local brewers cannot compete on price. Competition between pubs is also highlighted. Because beer prices are relatively inelastic, emphasis is placed on the level of amenities provided in pubs, and in particular the branding of pub outlets. Key among these amenities is the provision of food, which now accounts for a substantial percentage of total pub sales.

Corporate heritage identity stewardship: a corporate marketing perspective

“…However, this research has largely focused on the strategic relevance of the familial dimension for corporate identities/brands (Craig et al, 2008) The case study focuses on the UK brewing sector, which is significant within the UK in terms of annual turnover, tax contributions, employment, and cultural relevance (Sheen, 2011;Muir, 2012;Oxford Economics, 2012). The industry is also characterised by a high level of competitive dynamic and change, government regulation as well as societal scrutiny and interest (Knowles and Egan, 2002; see Pratten, 2007aPratten, , 2007bPratten, , 2007c, thus, representing an interesting backdrop for corporate marketing issues in general. Further, within the brewing industry as one of the oldest industries in the UK (Mathias, 1959;Gourvish and Wilson, 1994), despite the market being dominated by large multi-national corporations, there are a significant number of multi-generational and long-established companies still operating within that industry.…”

The Role of the Internet in the Marketing of Independent Public Houses in the UK

“…The increasingly competitive climate of retailing in the alcoholic drinks sector has been well documented [Knowles and Dingle, 1996;Knowles and Howley, 1998 Gilbert and Stabb, 2000;Knowles and Egan, 2002;Pratten, 2003]. This has forced retailers 'to become more consumer orientated and to make the transition to the pub leisure retail industry' [Gilbert and Stabb, 2000: 35].…”

A new landlord? A study of the changing demands on the UK public house manager

“…Other drinks, notably wine and spirit-based drinks have increased and the retail on-trade has extended into the provision of other services, notably catering; the concept of a ''pub'' selling beer is no longer a useful way of analysing the retail market'. As a result, the 1990s saw 'innovations in the pub environment, such as the growth of pub catering, the development of theme pubs, family pubs, etc' (Knowles and Egan, 2002). Juke boxes, electronic games and fruit machines are modern accessories in most houses, and are the result of changing demand, together with a wider variety of drinks, food in bars, and attractive surroundings where families are welcomed.…”

“…This may be why managed houses are sometimes criticised for being soulless, impersonal places' (Davis, 1981). Thus, many people held an 'image of a pub as a dingy, male-dominated drinking den' (Knowles and Egan, 2002).…”