Greene King PINS Presentation

Leading quality in cask

January 2023

“Behind [the] important practicalities lies the soul of the British pub, the heartbeat of our drinking culture, the essence that made all of us choose this industry instead of coffee-making or insurance brokering. Even non-drinkers of cask agree it’s an important part of a ‘proper’ pub.”

Pete Brown, The Morning Advertiser, 22nd April ’22. “Licensees must realise the trouble cask is in”

Cask ale can be a lucrative category for pubs Increase frequency

Volume driver

Adding Value

Cask ale drinkers…  Spend more  Visit more frequently  And influence the destination of the group

Important source of volume for those who do stock CASK.

Increase cash margin. Cask ale drinkers are significantly more likely to pay more for better quality pint.

Quality Signal

Pub USP

Large consumer base

39% of people who drink Beer and Cider in pubs think Cask Ale is a sign of a good pub.

30% of people who drink Beer & Cider in pubs think Cask Ale is what makes pubs special.

5.4 million cask drinkers out of home (Same as total rum, and ahead of whisky, brandy, liqueurs and cocktails).* Sources: *Kantar Alcovision Panel | 12m/e 30 Sep 22. GK Survey data December 2022 amongst a sample of 179 people who drink beer and cider in pubs regularly.

There have been challenges with cask in recent years that can create a vicious circle for publicans FEWER PEOPLE

LESS OFTEN

SPENDING LESS

Cask drinkers were the last to return to the trade

Quality Issues driven by reduced ROS leads to consumers drinking cask less frequently

Cask ale under-valued vs other categories

Impact on ROS

Publican Reduces Range

Consumers don’t view as a credible option

Nearly 60% of cask drinkers would either find an alternative cask pub or reduce visit frequency if cask was removed Sources: If your local or favourite pub removed cask ale from their bar, what do you think you'd do?Cask Ale Research – Consumer and Trade Mirror Surveys – June/July 2021.

Cask drinkers expect to see an interesting range on the bar, but quality is important too  2 in 5 cask ale drinkers - have more than one brand during a visit

 Cask drinkers want to see a range of options on the bar

 Cask ale drinkers are more likely to look for quality of drinks available when visiting a pub (+5pp v’s average LAD)

 Cask ale drinkers are more interested on what's offered on the bar before making their purchase  15% of cask ale consumers attribute their choice of category to the venue (+2% v’s avg LAD consumers)

Source: CGA Path to purchase December 2021.

SO FAR GREENE KING HAVE LED THE WAY TO SUPPORT THESE ISSUES… 1

Category based range recommendations to ensure optimum range by outlet aligned to throughput.

3

Training and best practice cellar services and education along with cellar support tools.

Stick 1 Min 24 pints per day.

National amber brand with strong ROS.

Stick 2 Min 48 pints per day.

National premium amber or golden or seasonal.

Stick 3 Min 72 pints per day.

Regional or seasonal.

Permanent

Permanent

Rotational

2

Biggest marketing spend vs any other cask brand to drive awareness / consideration and rate of sale.

4

Cask Iron Guarantee – providing refunds for unsold beer that is past best to hundreds of pubs signed up to the scheme.

But as leaders we can do more

GREENE KING will become the UK’s biggest supplier to the trade of Cask pins

Enabling quality through format choice 4.5 Gallon format = 36 pints

Pubs only need sell 12 pints a day to ensure beer is at its freshest

Ideal for pubs who wish to expand their range or keep cask on during the quieter times of the week.

Quality challenges CHALLENGE

3 DAYS MAX

OUTCOME

Impact of poor quality

70% Of ale drinkers have been served off or stale beer

Throughput per cask

ONLY

8.3%

Of brands are delivering the recommended throughput*

On average, pubs over range by 3 taps across draught beer & cider** SOURCE:

*CGA EPOS DATA 2019 **Vianet Insight report 22

40%

Stayed away from the pub

39%

37%

Stayed away from that brand

Told their friends

Quality dispense using pins improves profit Less wastage from fobbing*

Improved ROS**

£1,382

£3,110 £4.5k cash benefit per year

SOURCE Vianet on wastage (Feb 2022) Based on outlets selling 150BB a year, firkins

*Cost price of £1.60 per pint

** Retail selling price of £4 per pint

When to use pins v’s firkins For quieter periods Monday – Thursday to ensure quality.

For venues wanting to offer a wider permanent range.

Pin – 36 Pints

When you want to extend the range for Seasonal Ales.

Firkin – 72 Pints

they both have a role to play

With over 30 beers to choose from we can offer choice to both the trade and the consumer,

keep the range interesting, keep guests engaged and keep cask alive by championing quality.

Traditional Favourites

Seasonal & Collaborations

2023 Calendar celebrating key events throughout the year

Recommendations In order to maintain the right quality cask should be served within 3 days of tapping. This is a key factor in determining how many sticks should be on the bar.

Stick 1 Min 24 pints per day.

National amber brand with strong ROS.

Stick 2 Min 48 pints per day.

National premium amber or golden or seasonal.

Stick 3 Min 72 pints per day.

Regional or seasonal.

Permanent

Permanent

Rotational - PIN

Amber accounts for 68.4% volume share vs golden 27.5%. We recommend amber should be prioritised for Stick 1 with either a premium amber or golden on Stick 2 dependent on regional/customer preference.

Utilising cask pins will help pull all 3 growth levers MORE PEOPLE

MORE OFTEN

SPENDING MORE

Broadening Range Without Waste

Improved Quality Drives Frequency

Worth Paying More For

Meaning Range mix can include a combination of established and growing styles.

Bringing more people to the category

Broadening Appeal

Cask seen as relevant across more occasions – tapping into treat based moments.

Consumers perceive cask as an exciting, quality category that’s worth paying more for.

Quality Driving More Occasions

Worth a Premium

Adding incremental value to the category

THANK You Please contact Greene King for further information