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City brewer courted by supermarket giant



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Published Date: 25 March 2008
Email Paul Grinnell
Oakham Ales has teamed up with retail giant Tesco as the brewer seeks new ways to sell its ales in a tough market, as Business editor Paul Grinnell reports.
BREWING beer is a life-long passion for John Bryan (35), the head brewer of Peterborough-based Oakham Ales.

And while he is never happier than when dreaming up a new real ale recipe, that passion, which stems from his teens as he mixed homebrew on the family cooker in a 10-litre pan, has been blended over the years with a dose of business reality.

For shortages of the raw materials, hops, malt and barley, that are vital to the brewing process, and a growing worldwide demand for those same ingredients have forced up the costs of brewing at the Oakham Ales premises, in Maxwell Road, Woodston, Peterborough.

Indeed, there are even fears that the price of beer will hit the dizzy heights of £5 a pint in the not too distant future, something that is likely to make even the most hardened beer drinker change his tipple.

As if that is not enough the rise of the supermarkets and a lull in the popularity of pub-going are also conspiring to dent the profitability of brewers.

Even an apparently minor matter such as the difficulty of ensuring the return of the company's steel casks, which cost the brewery £74 each, is having an impact on the bottom line.

And, perhaps ironically, it is with this relentless buffeting in mind that Oakham Ales has chosen to deal with the biggest supermarket of them all – Tesco.

Related:
Letters: Pub is an asset we must keep in city - 21/02/2008
Oakham Ales open state-of-the-art brewery, 23 August 2006
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From next month, Oakham Ales will be supplying two types of bottled ale to the Tesco Extra, at Serpentine Green, Hampton, with a further bottled ale to come on line shortly afterwards.

The beers will be JHB, Bishop's Farewell and Hawse Buckler.

Mr Bryan said: "We have had a problem with the barcode for one of the beers – something to do with a missing number four but we should have that sorted out soon.

"Why have we teamed up with Tesco? It is a good question.

"There is not much money in it for us with the limited amount that we will supply. We will probably make 10 per cent of the price. To be fair bottled beers form only one to two per cent of our annual production.

"For us it is more of a marketing exercise. We are trying to lift the profile of the company.

"Hopefully those who drink our beers in the pubs will also buy it at the supermarket, and vice versa.

"Beer prices are going up – there is even talk of prices rising to £5 per pint – and at some point the ordinary man will decide 'I'm not going to the pub, I'm off down the supermarket'.

"And that is where we see the upturn – in off-sales."

Although Mr Bryan tends to understate the achievement of a deal with Tesco, it is an impressive record for a small brewery that began 20 years ago with just two people.

It now employs 14 members of staff and turns out 750 barrels a week supplying pubs across the Midlands.

During that time the brewery has won an impressive 140 awards and has seen its turnover reach £1.7 million a year.

It produces a range of beers. Its permanent ales are JHB, Inferno, White Dwarf and Bishop's Farewell.

The full article contains 599 words and appears in Peterborough ET newspaper.
Page 1 of 2

  • Last Updated: 26 March 2008 9:03 AM
  • Source: Peterborough ET
  • Location: Peterborough
 
 

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