Greene King PINS Presentation

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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

Cask ale drinkers…

 Spend more

 Visit more frequently

 And influence the destination of the group

Volume driver

Important source of volume for those who do stock CASK.

Adding Value

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

Quality Signal

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

Pub USP

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

Large consumer base

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.

FEWER PEOPLE SPENDING LESS LESS OFTEN

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

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

 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)

Cask drinkers expect to see an interesting range on the bar, but quality is important too
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.

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.

2

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

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

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

Permanent Permanent Rotational

KING

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

GREENE
will

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

Throughput per cask

OUTCOME

Impact of poor quality

70%

Of ale drinkers have been served off or stale beer

8.3%

Of brands are delivering the recommended throughput*

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

39% 40%

Stayed away from the pub

37%

Stayed away from that brand

SOURCE: *CGA EPOS DATA 2019 **Vianet Insight report 22

Told their friends

ONLY

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.

Pin – 36 Pints

For venues wanting to offer a wider permanent range.

When you want to extend the range for Seasonal Ales.

Firkin – 72 Pints

they both have a role to play

Seasonal & Collaborations

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.

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.

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.

Permanent Permanent Rotational - PIN

Utilising cask pins will help pull all 3 growth levers

MORE PEOPLE

Broadening Range

Without Waste

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

Bringing more people to the category

MORE OFTEN

Improved Quality

Drives Frequency

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

SPENDING MORE

Worth Paying

More For

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

Broadening Appeal

Quality Driving More Occasions

Adding incremental value to the category

Worth a Premium

THANK You

Please

contact Greene King for further information

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