Stock Auditor 2000 Annual by KPS Media

STOCK AUDITOR Number 9

JANUARY 2000

A Happy and Prosperous New Year to all our readers StockMaster now with ILTSA enhancements Because t h e program is Windows based, m a n y options have been built in, giving the user total adaptability. Each stocktaker can choose what he or she wants and personally create their own report configurations. As we would expect, it is easy to produce till reconciliation, trading account and food reports. StockMate contains a complete stock list including description, location, opening stock and selling price details and has multi bar capability. It provides product coding and look up functionality and even includes a screen back light for use in dark corners. The product search facility eliminates the need to carry any paper references and an audit trail is available recording all transactions entered throughout the count process. For those of us who prefer to count on paper this presents no problems, which is indicative of the adaptability of the applications. The whole system is feature rich and can be installed on a desktop office system or fully exploited in the

StockManager can exploit remote communications to save time, reduce error and travel and offer unrivalled customer service when used to: Access on-line support Receive application updates Access on-line training Send copies of reports to clients he system StockMaster was launched in September last year by Greyeye Technology and has been upgraded to include the suggestions made by our members. It is now ready for distribution with all these enhancements. Undoubtedly it is the best program currently on the market, but not just that, it has all the flexibility necessary to permanently maintain itâ&#x20AC;&#x2122;s place at the top. StockManager is the computer application element of the StockMaster system and, together with Microsoft Office, provides many functional features that make this system uniquely flexible, creative and powerful in operation and deliverables. StockMate is a small and comfortable mobile handheld data collection terminal with data security, many intuitive features and electronic data transfer to StockManager reducing both time and error.

Stockmaster mobile scenarion. not need to be acquired and The system looks smart and software is available which will professional and Greyeye convert data from several Technology Ltd pride existing programs including themselves on their excellent ManData and Husky Hunter. training program and after sales For those of us who want to support. They will continue to work with the modern enhance the product so that it technology and have the ability retains its hold as market leader to offer an enhanced service to and ultimately by way of our clients, StockMaster is the options it will incorporate WHAT YOU GET every facility StockManager installed on a high spec. laptop possibly MS Office Professional required by Battery operated inkjet printer (with infra red) professional Numeric keypad for data entry on the laptop stocktakers. Modem and remote communication software All leads, batteries and chargers The complete StockMaster system as detailed above is answer. It is a unique program delivered in a hardwearing and incorporates all the computer bag. Any part or suggestions made by our parts can be purchased on their members in recent months.n own â&#x20AC;&#x201C; the whole system does

Millennium Thoughts from the Secretary p3 Tourism Helps p4 An Audience with John Tandy p4 Exam passes and new Fellows p5

A French Holiday p6 What is depreciation? p6 News Round Up p7 Breweries of Britain p8

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INSIDE THIS ISSUE

STOCK AUDITOR The Magazine of:

A New “New Start” Chris Swift - Editor

or all the eagle-eyed readers amongst you (Should not all stock auditors be eagle eyed?) I should perhaps explain that we have rethought the production of the Stock Auditor. In order to remedy the distribution problems experienced in the past the magazine is now produced ‘in - house’ with the assistance of Alec Crighton. We have subtly changed many things for this edition and hopefully this process will be continued over the coming issues. Alec brings with him a wealth of experience in printing along with his proven expertise in marketing so I feel that the magazine can now only improve. We aim to increase the circulation of the magazine to include distribution to decision makers within the trade. Hopefully this growing process will enable us, by the acquisition of more advertisers, to increase the magazine from the present eight pages to twelve or should there be enough interest sixteen pages - we have to

increase in multiples of four pages. Now, more than ever before, the magazine needs the help of all members of the Institute. We need help in the following ways. n Contributions, however small, that may be of interest to your colleagues and the Licensed Trade in general. I would in particular like to encourage debate through a lively ‘Letters to the Editor’ page. n Your feedback on how we can improve on the layout and composition of Stock Auditor n Details of anyone you feel could advertise in the magazine. n Details of anyone who you feel would benefit from a complimentary copy of Stock Auditor. I do hope that you will find this issue, the first of the new millennium, of interest and please bear the above in mind - Our success to a large extent is down to you.n

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Editor: Chris Swift Tel/Fax: 01422 363034 E-mail chris@stockauditor.org.uk Mobile: 0468 962354 Advertising and Production: Alec Crighton Tel/Fax: 01227 794714 E-mail alec@stockauditor.org.uk Mobile: 07713 551031 Accounts: Bruce Thompson Tel: 0131 315 2600 Fax: 0131 315 4346 E-mail: bruce@stockauditor.org.uk Published by: The Institute of Licensed Trade Stock Auditors 7 Comely Bank Place Edinburgh EH4 1DT Tel: 0131 315 2600 Fax: 0131 315 4346 E-mail StockAudit@aol.com http://www.iltsa-uk.freeserve.co.uk

Printed by:

White Horse Press Ltd 65-67 John Wilson Business Park Chestfield Whitstable Kent CT5 3QT

All Subscriptions payable in advance. Published 12 times per year post free: Annual subscription £24 ISSN © Institute of Licensed Trade Stock Auditors, 2000

CHAIRMAN Steve Berry FILSA 15 Deanburn Walk Bo’ness West Lothian EH51 0NB Tel: 0131 225 7611 (Business) Tel: 01506 825227 (Home) Secretary & Treasurer Bruce Thompson FILSA MHCIMA BII 7 Comely Bank Place Edinburgh EH4 1DT Tel: 0131 315 2600 Fax: 0131 315 4346 ADMINISTRATION Gina Pugalis

John Tandy FILSA 32 Jasmine Close The Richmonds Gloucester GL4 9FJ Tel: 01452 410349 Michael Murdoch FILSA Badger Gate Pendle View Brock Village Hall Blackburn BB6 8AT Linda Arthur FILSA 22 Foley Road Claygate Surrey KT10 0ND Tel: 01372 465949 Fax: 01372 465949 George Giles FILSA 16 Mere Drive Fallowfield Pity Me Durham DH1 5DD Chris Swift FILSA 13 Moor Top Road Norton Tower Halifax HX2 0NP Tel: 01422 363034 Trevor Perrott FILSA Stockwell House Kingfield Road Kingfield Woking GU22 9AB Tel: 01483 770102 Ron Foster FILSA 2 The Close Lydiard Millicent Swindon SN5 9NJ Tel: 01793 771959

As we went to press we were sorry to hear of the death of one of the founders of our Institute and Past President Stan McCardle, who passed away at 6.00 a.m. on the 3rd. January 2000 A full obituary will appear in the February issue of Stock Auditor

Secretary’s corner

Millennium Thoughts do the expenses. Today is no exception, persevering with those approached over and as we look at the huge amount of recent months or years. Alec Crighton work done by our forefathers in planning, continues to make inroads into the trade his being my first feature into the setting up what was originally an press, and all business transfer agencies twenty-first century, and with all this association, taking it through the stages have been contacted with a view to their millennium nonsense behind us, I will of being an Incorporated Society before using qualified stocktakers only. Our ponder over the being granted Institute Status, and merchandise continues to sell well and we achievements of the A through the many years increasing have a new windows based computer tru Institute since its trem e g membership and fulfilling the needs program available with substantial e e n inception in 1953 and Inst ndou t l e m of stocktakers, we must discounts on offer to members. The itut s a e.... advo n a n then consider where cat d a never ignore their benevolent fund sits at well over £8,500. e of we are going and how our the contribution to what we Things are beginning to work with P.B.S. profession will be in 2050. Much of have today. Their work Quartermaster, which should be the burden of running the Institute falls will never be forgotten, but advantageous to all of us. My office is on the shoulders of the Secretary and it is up to today’s team to carry those inundated with requests for lists of broad they often have to be. My own endeavours and beliefs to their successors stocktakers by area and, though hard to involvement only goes back some and beyond. define, members must be benefiting. Your seventeen years and I always remember council are attacking all fronts and meeting our now President, Without the foundation laid by those gradually barriers are being broken with Norman Clements, who was then before us, we could never have achieved more corporate bodies realising the Chairman, for the first time. A true as much as we have. Though membership importance of using only qualified people. gentleman and a tremendous advocate of has remained static over the last year or Both Customs & Excise and the Inland the Institute, he was assisted by Secretary two, we have enrolled many new Revenue are beginning to recognise us. John Watts who ably also did a great job members, most of whom have taken the The Institute of Chartered Accountants for us and together with Stan McArdle, examinations and are now qualified. has already done so. the then President, we had a formidable Sadly there has been a natural wastage, everything to trio. From the early days, the belief of but now we have no members who are in We are doing arrears with subscriptions nor are we promote the Institute and to our eight founders was that stocktaking ith f ensure carrying any associates who have failed that w did not achieve the recognition it o ted members get as deserved nor merited. They struggled to to take the examination within the da i s t s n l u qualifying period. This in itself is an much work as n i correct this misconception, and through is f o r e achievement and enables us to possible through their c the sixties, seventies and into the eighties, i off s t s s... enter the new century with a membership. This we will y r Norman and his team carried on their M q u e ke dedicated membership and a continue to do, but what is the a t e good work. k r clean bill of health. future of Licensed Trade Stocktaking. toc s They achieved phenomenal success and There’s no doubt about it that things will with an ever changing council, new ideas Despite poor results for 1999 the change, but our profession is safe even council have not increased subscriptions. and views. Steve Berry, our present though it might mean a lot more analytical The current year should be a lot better Chairman, came on the scene; his work rather than bottle counting. The and trading projections look good. We role was Secretary/ consultancy side will develop with clients The are like any other business and are Co-ordinator and from cur being much more into margins and r affected by national trends. Media e nt y the mid eighties, under his ear profitability, but cash registers have hype over possible sho regime, membership took off and almost reached their ultimate and there uld recessions resulted we really did begin to gain recognition. be has to be a balance between what is a lo in our t be Training seminars were re-established and useful, practical and what is superfluous. tter having to cancel the ... soon after, with two years arduous work They will not develop much more unless training seminar planned involved, the book ‘Taking Stock’ was by scanning products and comparing to for last March and as a result we launched. It was a glorious day and all till reports; already Stockmaster are suffered a substantial drop in anticipated 80 of us including the local mayor enjoyed developing a facility to compare till profits for the year. These are unforeseen lunch, on the lawn at the Waltham Abbey readings against sales by assessing the circumstances and there is nothing we can Hotel. The press were there and with cash register. Stock auditing in one form do to recoup that money. The Web site instant sales of several hundred books or another is here to stay and our has now been updated and a new scheme things looked great. set up by Ron Foster on regional profession will survive even our youngest Cash flow has always been a problem and representation, which hopefully will members.n no doubt will be well into the twenty-first create more dialogue between members. BRUCE THOMPSON 22.11.99 century. We never seem to have enough money to do what we want. Contact has been made with several Subscriptions continue to go up, but so national companies and we are By BRUCE THOMPSON

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TOURISM DOES HELP - EVEN US Norman Clements

fter spending four weeks holiday in Australia I am convinced we are pricing ourselves “out of the market” in this country. They say comparisons are odious but we have to live with them and it is very apparent that many overseas visitors think that most things are dear in this country of ours. More than once in the last few years I have been asked the question “How on earth do you manage to live here?” Naturally our Tax system is different to other countries, but our Tourism Industry is vitally important to us. So I appeal to the Government to look into the cost of our Hotels as a starter, for I am sure we could boost the number of visitors if this could be done. The pound may be strong but this is only part of the answer. If we are truly honest I think we would agree that we have all been greedy over the past decade. Many will say this all started in the 1980’s when we were all on a High but I feel it started before then. Even now, if the Brewery or some manufacturer increases the price of a given item the wholesaler adds a little for himself, and then the retailer does the same so as to keep up his Gross Profit - saying the rent or the wages not to mention the rates have all gone up in recent months. All these are plausible reasons but what if we reduced prices by 10% on a given date? Everyone, with no exceptions manufacturers, wholesalers and retailers - would we be any worse off? It would take a law to make it work, but I think it would be a start. The Government would not have to reduce Income Tax or VAT as this would drop as a matter of course. Shall I send this letter Mr Blair or would it be a cranky idea? I, for one have missed Ivor’s comments lately so maybe this will bring him back.n

An audience with ..... John Tandy FILSA John Tandy joined theRoyal Navy on leaving school where he studies radar and radio. He entered the licensed trade in 1966 as a trainee valuer and stocktaker with a Gloucester firm and later started his own business in1974. Since then this has expanded into a formidable business operating throughout the South West of England. He lives in Gloucester with his wife Diane and daughter Susan.

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What was your first job? Royal Navy. How much was your first pay packet? £1-10s What was your best subject at school? Maths. If you weren’t a stock auditor what would you like to do? Be an accountant. What is your favourite time of the day, and why? Evening when I am able to relax. What was your worst mistake (be honest)....? Counting 20 x 22’s as 20 x 11’s. Name one person you would most like to have dinner with and why? The Queen because I am proud of being British and a Royalist. it would be an honour to have dinner with her. What is your favourite place? Home. What is your biggest fear? Being trapped underground. Who in the Licensed Trade do you admire most? The original committee for setting this Institute into motion.. What is your worst fault? Too short a fuse at home. What is your favourite book? Churchill’s, The Struggle for Survival. What is your favourite film? Any John Wayne film. What is your top time saving tip?

To be totally prepared for every job. What makes you really angry? Having to wait for paperwork from clients. Who, or what, could you not live without? Diane, my wife and Susan, my daughter. What do you spend most money on? Bowls. What’s the best device or gadget that you have ever bought? A calculator. What would be an ideal day away from the office? A nice day somewhere with my wife and daughter. What is the most overrated virtue? Patience. What advice would you give anyone

starting out as a stock auditor today? To be prepared for a lot of hard work and to expect no thanks for it. If you were prime minister what would be your first task? To lower duty on beer and spirits. What attributes make a good stock auditor? Thoroughness and an inquisitive mind. What is the highest compliment you have been paid? Being told by a client that I had done an excellent job for him. What would you like your epitaph to be? A loving husband and father who worked hard and enjoyed life to the full.

STOCKTAKERS Venners plc are the UK’s leading licensed trade stocktakers and we require additional staff to join our growing field based audit team in all areas of England and Scotland. Whether you have many years experience or are new to the trade we want to hear from you. Send us your CV now and open up the best opportunities in stocktaking. Driving Licence required. Apply in writing with CV and quoting Reference ILTSA 0100 to: Venners plc 66 George Row, London, SE16 4UH

CLASSIFIED ADS.

Book now for the AGM in May THE BURLINGTON HOTEL FOLKESTONE, KENT

Cost 50p per word - maximum 50 words. Members free of charge Call 01227 794714 to place an advertisement Qualified Member (London Based) Seeks acquisition of existing company or partnership. Would consider most opportunities incl. employment, with a view to future participation in the business. Hard worker with 20 years experience. For further information contact the Secretary (Ref 1521) on 0131 315 2600 or fax 0131 315 4346

Have your Classified ad. Here On the Web This months web site is

“Brewers World”

Friday 12 May to Sunday 14 May Two nights’ extravaganza for only £120.00 including - dinner, bed and breakfast, 2 glasses of wine each night,buffet lunch on Saturday, entertainment on Friday Evening and a Saturday morning tour for partners. France Friday 12 May A coach will collect delegates, partners and friends from the hotel at 9.30 a.m. We will cross the Channel, have a short tour of the area, some lunch and leave everyone in a shopping area for a couple of hours before channel hopping back to our hotel at about 5.30 p.m. the cost will be approximately £19.50 and £13.50 for children.

Europes largest Internet site devoted to the brewing industry. With news, bulletin boards and much information on the subject of beer world-wide. You can find it at: http://www.breworld.co.uk

Very soon booking forms will be mailed to members

Exam Passes October 1999 Congratulations to the following members who have passed the exam.

The Burlington Hotel Town Centre & Station 1 mile Channel Tunnel 2 miles M20 2 miles London 74 miles Gatwick 74 miles Heathrow 94 miles The newly-refurbished Burlington Hotel was built in the 1880’s and stands in its own grounds, set in tranquil surroundings overlooking the Leas Promenade and the English Channel. Its 70 bedrooms are all en-suite and contain the luxuries expected by today’s traveller. The majority of these have sea views. By reputation, the food is excellent, so hopefully we will see a host of old and new faces.

Xactrocount

Dispense Counter

Gerald Batt - Clevedon Alan Hayward - Southampton Annette Hewitson - Durham Ian Hurst - Didcot Tony Johnstone - Luton

Draught beer sales monitoring instantly! Simple calibration for any dispense size

Andrew McKenzie - Surrey Sam McLung - Paisley Margaret Noble - Leicester Monica O’Reilly - Tonbridge Ken Shaw - Preston Paul Sleap - Todmorden Tony Whittingham - Dorcester

New Fellows Congratulations to the following members who have been awarded Fellow status: Fiona Sturrock - Jersey

Next Institute Training Seminar commences March 16 to Mar 20 Next Institute exams. take place on Thurs 16 Mar For further details contact the Secretary

Low voltage Xactrocount for under-bar or cellar installation

Drinkbrook Beverage Services Unit 1 Enterprise Centre Hastings Road Bromley Kent BR2 8NA Tel: 0181 462 6098 Fax: 0181 464 9934

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Ron Foster - Swindon

Xactrocount can only be reset by manager key

French Leave isn’t so bad Neil Johnson

ollowing the recent bad press in relation to France, I thought you might be interested in our experiences this summer on our first visit to this country. As avid caravanners and Caravan and Camping Club members, we booked a site on the coast of Normandy. Having booked through Carefree agents, seventeen of us travelled over to Caan on Brittany Ferries from Portsmouth. The ferry was an incredible size, boasting numerous bars, shops and cinemas. Entertainment was available for all the children throughout the five to six hours crossing. English was widely spoken, well and sometimes better than us Yorkshire folk! Alcohol was cheap and plentiful even on the ferry, I thought prices would be at a premium where a captive clientele was guaranteed. The remarkable thing was we kept on referring to British Rail and the standard we had all experienced over the years and measuring those dismal stories against this French travel company. Upon arriving at the site late at night, we were shown the pitches and assisted in ensuring we had correct polarity on the electric supplies. Our first day was taken up with setting up and getting to know our way around the site. We were approached by the site managers and given information on local shopping and market days’ etc. Driving, for the first time in France was not as bad as I had expected. Having said that, four Land Rovers in convoy with British plates might have an effect on the local populace in keeping their Clio’s a safe distance! Crossing roads on foot, we found to be an experience in as much as the

pedestrian crossings are “non-existent”. In fact whilst waiting at a crossing for over five minutes, two cyclists stopped for us to cross. I remarked that they must be British; one cyclist asking me in a broad scouse accent how I knew, my reply being “You’re the only *!*!!*!!* who stopped for us!” Even at this busy resort of St Aubin Sur Mer police were non-existent. No graffiti or anti-social behaviour was evident during our time there. Our visits to the D-Day landing areas and museums proved so interesting and at times both funny and sad. We read of an account of a capture of a seachlight battery which had taken two days until a decision had been taken to ignore it as it then posed no threat to allied troops. A small group of demolition experts were then sent to take the station and after five hours of trying to blow the doors off, they finally succeeded. With only a few hand guns between them, they were about to enter the bunker section when a German officer shouted in English “Its all right Tommies you can come in” the reply was “B****r that, you can come out!” The Mulberry Harbour was an incredible feat and parts can still be seen today. I honestly doubt that “we” could achieve the same today, in so short a time. The most poignant and sad time for us were the visits to the war graves. There was not even a blade of grass out of place. To see so many graves brought tears to our eyes; to see the final resting-place of so many soldiers. Each cemetery had a book of remembrance and a visitor comment book. All were in excellent condition and readily available. Again the comment was this

would not happen in Britain; the cemetery would have been vandalised, the books destroyed and the soldiers forgotten. I read a comment by a visitor, “Dad, I never knew you and it has taken me twenty years to find you. I am so proud now and ashamed that we have not learned the lessons of war so many years later.” The tears welled up in our eyes. When asking for directions for the war graves, we were politely reminded, as a mark of respect, that it be expected that men wear long trousers and all are neatly attired. During our visits we did not see one person unsuitably dressed, even though the weather was so warm. We found the French to be very hospitable and had a genuine interest in life in Britain. Yes, the beer and wines were varied and cheap and the disparity in costs between the two countries criminal and yes, we did take full advantage of it! I can honestly say that I travelled all that way to see the Eclipse and can’t remember it! In conclusion, don’t believe everything you read in the press about the French. We found them to be charming, helpful and sincere and still grateful to this day to the English.n

DEPRECIATION WHAT IT REALLY MEANS by John Gomersall* apital equipment like a van, fixtures and tills etc. used in a business all loose their value over the years and this loss is called depreciation. The amount of value that they loose is a cost to the business. This cost is spread over a number of years. There are three main ways of coming to the actual cost of depreciation of capital equipment, which is best left to an accountant. Because depreciation is a cost it is always put down under the overheads in the profit and loss account, but really is not a real cost as no money has been paid out, like all other expenses in this column. This is the reason why the depreciation is added back to the net profit, and the tax based on this new figure. Therefore, in real terms the net profit shown is increased by this value. The reason for all this is that the so-called cost for depreciation has not in real terms cost any money. This is not an easy concept to understand and therefore when drawing up a profit and loss account this depreciation can be left out, so that a true net profit is shown and tax will be based on this. If conventional profit and loss accounts are drawn up then the depreciation figure is just added to the net profits shown, in order to get a true picture of the accounts and also the actual figure that tax will be based on.n * John Gomersall is an Independent Business Consultant 27 Clifden Rd Worminghall Nr.Aylesbury Bucks HP18 9JR

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Author of “ Basic Financial ‘Know - How’ for Small Businesses”

he new Millennium burst in with a bang as millions of fireworks around the globe heralded the great day. The much-hyped Y2K bug, although making a small appearance in some countries, did not make the prophesised impact. Although many businesses were very successful, many who tried to cash in, paid the price for their greed on Millennium night and probably in the future. Most noticeable was the variation in festivities worldwide as celebrations were shown live over an 18-hour period - inconceivable just a century ago.

Welcome to Innstore The Institute has partnered with Innstore to bring members and clients the best products and services available to the licensed trade. A whole host of services are available and clients benefit while qualified members earn money. If you have clients who say “yes” to any of the following, then wait for the circular you will soon receive which contains full details of what you can do about it and who to contact.

It started 13 hours before GMT on a remote South Pacific Island with a beach party on the renamed Millennium Island, in the Republic of Kiribati with ‘a wish to put aside all divisions and unite in love and peace’. Pwepwa Tokia said, “ I feel very proud that this is the first Island to see the New Year”. Within minutes other countries in the South Pacific started their celebrations. A couple in the Chatham Islands became the first to be married and the first baby was born in Auckland, New Zealand. Storm clouds in Sydney could not dampen the biggest firework party Australia has ever seen. In Beijing Military bands played the Chinese National Anthem in Tiananmen Square and in Tokyo there was a 24-hour pop concert called Love 2000. In Russia, which spans eleven time zones, even the shock resignation of Boris Yeltsin failed to dampen spirits. In India an elephant was paraded through the streets to bring in the year 2000. Ancient monuments were used as backdrops for spectacular laser shows. In Athens columns of light surrounded the Acropolis, whilst in Egypt JeanMichel Jarre devised an elaborate sound and light show by the Pyramids. Paris lived up to its name as the City of Light as the Eiffel Tower was lit with a spectacular firework display in contrast to more than a million homes outside Paris without electricity after recent storms. All major European cities brought in the New Year in style. Many strange sights throughout the world were witnessed. In Edinburgh, Hogmanay centre of the world, apart from the magnificent official party on Princess Street, many small parties celebrated and John Bull in full hunting regalia, with whip and horn, entering a house in Comely Bank was indicative of the spirit that pervaded into the early hours. New York’s Times Square celebrated each hour of the Millennium as it happened starting at 6 a.m. with Maori dancers recognising that New Zealand and Fiji were among the first countries to enter 2000. Each hour events were organised all in an alcohol free environment.

The festivities are over and it is a time to reflect on the tremendous change that has occurred over the last 2000 years and more importantly how best to tackle the many problems and differences in the coming Millennium.n

Don’t get advice Pay too much tax Want web sites Need marketing advice Are buying or selling a pub Need refinancing Pay too much insurance Require legal help Or would like discounts on purchases

Where is Stock Auditor going? Alec Crighton

t must be a year since I wrote a brief article for the old magazine - the Stock Taker. A lot has happened since then within the Institute. The main marketing objectives have been to increase the membership, which in turn increases the standing and power of the Institute, and to make the benefits to licensees of your services more widely understood. Because of the financial restraints most of the activity except for the two exhibitions in Manchester and London has been media communications. Your own magazine now the Stock Auditor, itself part of the media, provides the possibility of helping with the two key objectives. The main reason for changing the magazine last May was to try and provide information that is up to date - easier with a monthly than with a quarterly publication. Also to try and provide a

content which would be of interest to not only Institute members but to your clients and other suppliers to the licensed trade. Because of some difficulties during the year I am now taking on the production and advertising to support Chris Swift’s tremendous efforts as editor. The intention is to increase advertising in order to develop new revenue which will enable the size and content to increase. We also need to increase the circulation and this is an area where you can help by showing copies of the magazine to your clients and perhaps suggesting they subscribe. We are setting up a web site specifically for the magazine and by the time you read this you will be able to visit it at http:// www.stockauditor.org.uk. We will be publishing useful articles and information to supplement the magazine and to encourage subscribers.n

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Nelson Mandella lit a “Freedom Flame” in his former prison cell at Robben Island declaring that no oppressor could ever extinguish mankind’s quest for liberty. In French Polynesia, the last region on earth to enter the New Millennium, a special parade was held in Tahiti.

NEWS ROUND UP

BREWERIES OF BRITAIN A series by Trevor Knight Part Thirteen

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he major mill towns of South Lancashire were established in the 18th century when ‘cotton was king’. The weaving tradition of the area dates back to the Flemish weavers of the 14th century but little happened until the Industrial Revolution. The proximity of coal for the steam-powered mills and the suitability of the climate for textile work helped the rapid expansion. But the area is not all industrial. The M6 motorway divides Lancashire from north to south and closely follows the route of an old Roman road. To the west of the motorway is 60 miles of sandy coastline from the entertainment metropolis of Blackpool in the south to the sparseness of Morecambe Bay in the north with it’s magnificent views of the Lake District fells. East of the motorway, rugged fells rise to the Pennine Chain and the border with Yorkshire. Pine and bracken fringe tumbling becks and cattle girds lie across tiny valley roads. Romans, monks and witches have all left memories here. The legions built a great cavalry base at Ribchester, to guard their network of strategic roads. Cistercian monks founded monasteries at Whalley and Sawley. At Newchurch, the village church has a carving, which was regarded as a talisman against the witches of Pendle Hill, ten of whom were hanged at Lancaster in 1612. The rivers and busy motorways share the valleys with the towns, which are wedged between the wooded, flat-topped hills. The reminders of Blackburn’s immediate past as a cotton town have all but disappeared. Most of the old mills which crowded round the Bolton Road locks of the Leeds and Liverpool canal have turned to new industries, though full-scale working models of Hargreave’s ‘spinning Jenny’ and Crompton’s ‘spinning mule’ can be seen at the Lewis Textile Museum. Blackburn Cathedral was built on a historic Saxon site in the town centre. Built as a parish church in 1826, subsequent alterations gave it uniqueness to both interior and exterior. Features include a central altar with corona aboth, stained glass from the Medieval period onwards and a fine Walker organ.

Daniel’s Passion Thwaite’s Brewery in Blackburn dates back to 1807, when young Daniel worked as a custom and excise officer. His patch covered east Lancashire and his calls included a number of local breweries including one run by two industrious Blackburn businessmen, Messrs Clayton and Duckworth. Daniel’s passion was brewing and his fascination for the industry led to the three men striking up a strong friendship. Daniel was also captivated by Mr Duckworth’s daughter and when they married, he became a junior partner; later taking over full ownership and control. The Family Firm Intact Thwaites is one of the oldest firms in Lancashire and countless generations of the founder’s descendants have brewed beer at the famous Star Brewery in Blackburn town centre. Such heritage remains clearly evident and is illustrated by the fact that John Yerburgh, great, great grandson of the founder, now heads the company as president. The Shire Horse - still at work Traditions are jealously guarded at Thwaites and this is illustrated by their continued use of their famous shire horses, both as a working horse delivering to local pubs, as they have done for nearly 200 years and as company ambassadors at major events throughout the country as proud ‘show horses’. They are still an integral part of brewery life, their popularity extending across generations and right through to Royalty. Indeed, when Major, one of the shires bowed its head to the Queen on one particular Royal visit to the brewery, the Thwaites logo was born! Cask Beer to Nitro Keg Progress with tradition perfectly portrays the Thwaites philosophy; successfully combining traditional brewing recipes and techniques with modern technology to produce an excellent range of quality beers recognised throughout the country and beyond. Major recent investment has increased Thwaites production of brewery conditioned keg and nitro beer but the commitment to traditional brewing

techniques stays at the forefront of the company’s agenda, particularly in regard to cask ales which are still produced in open square fermenters. Most of Thwaites 400 tied houses in Lancashire serve cask conditioned ales and a substantial free trade is supplied throughout the north west of England and even as far as London. ‘Britain’s Best’ CAMRA has been duly impressed with Daniel Thwaites ales for many years awarding their Bitter as ‘Britain’s Best Beer’ in 1983 and in 1986 when they became the only Brewery ever to win the title ‘Britain’s Best Mild’ for the third time. Daniel Thwaites Cask Beer Portfolio includes: Bitter 3.6% ABV A blend of the finest Fuggles and Goldings hops result in a morish session bitter, amber in colour with a distinctive malty finish. Mild 3.3% ABV A rich dark coloured mild with a smooth, malty flavour and a hint of roasted malt in the aroma. A consistent quality product and a true champion ale. Chairman’s Premium Ale 4.2% ABV A fine premium ale using only barley, malt and hops selected by Thwaites head brewer and approved by the Chairman of Daniel Thwaites. Chairman has a robust colour with a light quaffable palate. Daniel’s Hammer 5.0% ABV A traditional strong ale aimed at the discerning drinker. Pale and golden in colour, Daniel’s Hammer has a distinctive malty flavour and a crisp, dry hoppy finish.

Number 10

FEBRUARY 2000

Stan McArdle 1910 - 2000 Our President 1982 - 1997 An Appreciation from Norman J. Clements

the Institute owe him a great deal for his knowledge of Stocktaking, Accounts and indeed of Company Law, which he was always willing to impart when called upon. Our thoughts are with his two sons and family at this sad time.n

Golfing Society - and the annual Dinner Dance was something not to be missed. He organised the whole evening. Stan was a very sincere man, always smiling despite the tragedy of losing his wife and daughter in 1969. We in

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t is with much sadness this he did with great pride that I put pen to paper and enthusiasm for many today, although as I do so I years. am reminded of the many In the early days we only happy times spent with met each other twice or Stan over t h r e e the past times a f o r t y year so it s e v e n was quite years. a time before We first Stan and I met in the got to Solicitors k n o w Office in e a c h Bradford o t h e r on a cold really day in well. It M a r c h was in the 1953 when Stan McArdle as e a r l y about ten President enjoys a buffet seventies of us met lunch with his friends at that our to form the launch of the book “Taking Stock” friendship what was g r e w. to be our Association. After the Dorothy’s parents were in initial briefing by the Newcastle and Stan was Solicitor, Mr Richard living in Cleadon near Henton, we were advised Sunderland, so we met to choose a chairman. As quite a lot on nonwe were all strangers it was association business. decided to elect the oldest, Wherever you went in the and so as George Webber North East, Stan was well was senior to Stan it was a known and also well Southerner instead of a respected. Apart from his Geordie who became the work with the Brewery and first Chairman. However, Managed Houses he was Stan was quite happy to for many years the serve on the Council, and Secretary of the Licensees

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Page 1

INSIDE THIS ISSUE

The Magazine of the Institute of Licensed Trade Stock Auditors

STOCK AUDITOR

The Magazine of the Institute of Licensed Trade Stock Auditors

STOCK AUDITOR The Magazine of: The Institute of Licensed Trade Stock Auditors 7 Comely Bank Place Edinburgh EH4 1DT Tel: 0131 315 2600 Fax: 0131 315 4346 Website: www.iltsa-uk.freeserve.co.uk E-mail address: StockAudit@aol.com

Chris Swift - Editor

his magazine is dominated by the sad demise of our immediate past president, Stan McCardle. He served the Institute he helped set up, with distinction, over the past forty years. He will be sadly missed. As the New Millennium brings in another flurry of Government legislation, I do wonder in what direction we are heading. New rules on employment become law over the next few months, the new Competition Act will become law on 1st March 2000 and it has been rumoured in many papers that the Beer Orders are to be investigated. Many of you will remember the furore that followed the introduction of the Beer Orders in the mid eighties. Many of the new pubcos were created about this time and many people see them as the start of the decline in UK Brewing. The ironic thing is that the prime object of the Beer Orders was to increase consumer

choice. It was not a trade protection matter although many thought it should be. With many tenants of the new pubcos being tied more severely, it is plain to see that it made the situation worse, not better. Although pubs now carry a range of beer from many of the large nationals, the small independents have been squeezed out of the markets. In fact, tenants are now very often tied to anything that is sold on their premises; including all bar stock, fruit machines and in some cases even consumables. At the moment such an enquiry has not been confirmed, and it is difficult to see how the ‘genie’ could be put back in the bottle’, however, I feel that such an enquiry should be instigated. Thanks are again in order to all the contributors for this issue of the magazine - where are all the other four hundred members?n

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All Subscriptions payable in advance. Published 12 times per year post free: Annual subscription £24 ISSN © Institute of Licensed Trade Stock Auditors, 2000

PRESIDENT Norman Clements FILSA MHCIMA 105 St. Andrew’s Road Henley on Thames Oxon RG9 1PN Tel: 01491 628660 (Business) Tel: 01491 575451 (Home) Council of Management CHAIRMAN Steve Berry FILSA 15 Deanburn Walk Bo’ness West Lothian EH51 0NB Tel: 0131 225 7611 (Business) Tel: 01506 825227 (Home) Secretary & Treasurer Bruce Thompson FILSA MHCIMA BII 7 Comely Bank Place Edinburgh EH4 1DT Tel: 0131 315 2600 Fax: 0131 315 4346 ADMINISTRATION Gina Pugalis John Tandy FILSA 32 Jasmine Close The Richmonds Gloucester GL4 9FJ Tel: 01452 410349 Michael Murdoch FILSA Badger Gate Pendle View Brock Village Hall Blackburn BB6 8AT Tel: 01254 247496 Fax: 01254 247496 Linda Arthur FILSA 22 Foley Road Claygate Surrey KT10 0ND Tel: 01372 465949 Fax: 01372 465949 George Giles FILSA 16 Mere Drive Fallowfield Pity Me Durham DH1 5DD Tel: 0191 386 7699 Chris Swift FILSA 13 Moor Top Road Norton Tower Halifax HX2 0NP Tel: 01422 363034 Trevor Perrott FILSA Stockwell House Kingfield Road Kingfield Woking GU22 9AB Tel: 01483 770102 Ron Foster FILSA 2 The Close Lydiard Millicent Swindon SN5 9NJ Tel: 01793 771959 Patrick Simmons FILSA 95 Norwich Road Tacolston Norwich NR16 1BP Tel: 01508 489628 Alec Crighton Rosemary Cottage Green Leas Chestfield Kent Tel: 01227 794714

By BRUCE THOMPSON

Apri17 th ending 178 years of beer production In the North Wales Town. This follows the closing of its plants at Alloa and its brewery at Burton upon Trent. There have been protests at the proposed sale of Mansfields Brewery to Wolverhampton and Dudley. The former, 149 years old, has been offered £243 million for its assets and good will. There might be legal complications, but whatever it is always sad when small breweries are absorbed by the big boys. Soft drinks have become a major topic of discussion and prices have even been given a nod of agreement by the office of Fair Trading. As stock auditors we all know the huge profits made on nonalcoholic refreshments. Some of the selling prices and profit margins recorded in the press have been ridiculous, but nevertheless this was an area of contention. The DTI Consumer Affairs Minister Dr. Kim Howells was concerned about this possible overcharging and prompted an investigation by the OFT. The conclusion was that, in view of the number and variety of outlets, which allowed the customer to shop around for lower prices if they so wished, there was no need for an investigation. The OFT did however say that it would support any

moves to force pubs, bars and hotels to exhibit prices of soft drinks. Currently outlets are required to display the selling prices of up to 30 items of food and drink, what these are is unspecified and even the selling price, though unlikely, of beer need not necessarily be on show. The DTI have confirmed that a substantial number of complaints have been received over a long period of time concerning pub prices. They have had several meetings with licence trade related associations and are working together with them to ensure that all bars get the message on price visibility. Some pubs have already slashed the price of soft drinks in response to their concern, but all licensed outlets should be advised that the 1979 order is currently being amended so that more prices, including those of soft drinks must be displayed. When I talk to members, everyone seems to be very busy, with many being run off their feet, so lets hope that this is the trend for the current millennium.n

TRAINING SEMINAR MARCH 2000 A wonderful opportunity for your trainee stocktakers to be trained in a comprehensive and thorough seminar which will give them the best basic knowledge available today in Licensed Trade £50 Stocktaking. This course covers all aspects discount for of the profession and really is the only one available. members The lecturers are friendly, knowledgeable and keen to impart that knowledge onto recruits. Local workshops are held, each evening and those ‘struggling’ are encouraged to attend so that they can maximise on all lectures. Course critiques are always excellent and each course improves through comments by others so after 27 recent courses now is the time to send your staff.

For further information contact the Secretary on 031 315 2600

Page 3

anuary is almost past and with it the sad news of Stan McArdles death. He was a stalwart of this Institute and a man, in his day, much admired. This magazine is dedicated to him. Already we are heading towards the twenty-second century. I don’t expect that many of us will see it, but it’s a thought far our successors and their offspring. Reverting to our own period, once more, much seems to be happening within the trade whether its good or bad needs reflection, but as usual there will be the pros and cons with different sections of the public arguing for their view. John Madden, executive officer of the Guild of Master Victuallers, went with colleagues from the BII to meet Home Office Minister Mike O’Brien. Their purpose was to meet the people responsible for steering the reform of Licensing Laws through parliament. Excellent news that the trade is being represented and though Mr O’Brien said little, those present did feel that changes were likely, particularly in relation to Public Entertainment Licences which are currently both expensive and confusing. There should be as many meetings as possible so that the trade is properly represented and has a fair say in the livelihoods of so many people, also those who frequent licensed premises. There is still no news on new drink driving laws, but the police continue to demand a reduction in the alcohol level for drivers. Though not condoning drink driving, I think the current level is about right and does not need to be reduced. It allows us to have a social drink or a couple of glasses of wine with a meal. There is nothing wrong with that, but those who abuse it now will continue to do so, with the rest of us being penalised for their obstinacy and blatant disregard far the law. I for one would like to see higher penalties, with cars being confiscated for persistent abusers, but no decrease in the current level allowed for drivers. Police quote figures on drink-related accidents, but how many would have happened anyway? They publish the numbers of drivers caught over the limit, but this is completely deceiving when more and more are being stopped so that in percentage terms there is probably a drop. Carlsberg Tetley has confirmed that its Wrexham Brewery will close its gates on

The Magazine of the Institute of Licensed Trade Stock Auditors

Secretary s corner

The Magazine of the Institute of Licensed Trade Stock Auditors

VALEDICTORY INTERVIEW WITH THE PRESIDENT By George W. Giles F.I.L.S. (This article was originally published in ‘The Stocktaker’ June 94 )

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tan was educated at Westoe Central stocktaking in public houses. He found that breweries with close connections. The School in South Shields, Co.Durham. their bookkeeping system was somewhat three breweries were James Calder and Due to hospitalisation he was given a pass Dickensian and immediately attempted to Alloa, Arrols of Alloa, and Ind Coope, all in the eleven plus without actually sitting update them. His findings showed that all with their own stocktakers. The the examination, this due to the outlets were lumped together in one ledger. stocktaking was calculated out by using intervention of his mother. Stan left school Liasing with the auditors he separated the ready reckoners both at cost and retail and at the age of 16. outlets to individual accounts, doing this could become rather boring. Stan’s His first job, as an office boy, for a local enabled him to see at a glance how each thoughts were then channelled to setting plumber/electrician for the princely sum of outlet was performing. The owners were up a stocktaking department installing 12 shillings and sixpence a week lasted in full agreement with the steps he had machines and a calculator operator. He some twelve months. He then applied for taken. At this time he discovered that the costed out the machines and allowed for a job at Westoe Breweries Ltd., and when firm had a large amount of money in the initial tax allowances and the wage of a bank and got calculator operator. He set forth and appointed took a permission from offered the guarantee of a stock result cut in wages of 2 head office in within forty-eight hours, knowing he could shillings and Edinburgh to achieve this within 24 hours and with one sixpence a week. expend this stocktaker less. The scheme he put forward He tells me he money, by was accepted without hesitation and was learnt a lot from building up a success from the outset. At that time the Westoe Brewery stocks of accountant for Calders Brewery had the who had recently c o m m o d i t i e s usual checking troubles every six months employed a firm of which may to find any discrepancies. Stan suggested organisation and become in short to him that he use a self balancing system, method personnel supply in the of which he was not aware, this system to update their ensuing war years. was balanced each month so at the end of ledgers and Stan and Council members in 1953 modernise their administration. Stan was These commodities included vast quantities six months all he had to do was balance greatly impressed by this because he was of whisky, gin, rum, brandy, port and sherry the sixth unit to make it work out. The currently attending night school classes at and wines, a good stock of soaps and system was given a trial run and was found the Bede Technical School in Sunderland cleaning materials were also purchased. All to be a great success. It was about this time where he was studying several subjects, these were stored in T & J Bernard when a second son arrived on the scene, which included company law, mercantile premises, where he installed central stock He was named Arthur and went on to achieve his B.Sc. in chemistry by the age law, advanced accountancy and economics, systems for all withdrawals. of twenty trusteeship and executorship law. This was The office manager from Hull a three-year course in which he passed in at the Newcastle University. He all subjects and received certificates from office liked nothing worked for the Northern Counties Technical better than from I.C.I. as a Examination Board. time to time going research out with Stan and In 1933 he moved on to be staff manager chemist until overseeing the job and cashier to the South Shields two years ago in hand. This was all Greyhound Stadium Ltd. This was a when he very well, but he publicly quoted limited company, and moved on to also liked a drink or eventually he finished up as the accountant. Z e n e c a . which He remained with this company for some two, A r t h u r lumbered Stan with six years. It was while he was here that married a local the driving round Stan was married to Helena in 1936. In girl from country roads in Stan presenting Ron Foster with the following years three children arrived, Whitburn near blackout conditions. the George Webber Trophy the first born was a boy named Neill in Sunderland and Stan remembers one 1939, when Neill was 11 years old he now lives in Cheshire. Arthur has two contracted an inoperable tumour of the occasion after being out with the office daughters, the eldest; Sarah is in charge of manager he was travelling home from brain and since then has had to have full corporate loans for small businesses for Newcastle to South Shields on the train and care attendance. This was initially taken on Barclays Bank in Liverpool. The younger fell asleep. He was woken by a fellow by Helena until her death in 1969. Since daughter, Claire took her M.R.C.V.S. and passenger at South Shields and immediately then Neill has been looked after at the practices as a veterinary surgeon in a opened the door and stepped out of the David Lewis Centre in Cheshire. When the practice at Wilmslow in Cheshire. train, unfortunately on the wrong side, and war started Stan decided to move on again fell between two sections of live electric Arrols was taken over by Ind Coope and and acquired a job with Thomas & James railways lines. the stocktaking was fully integrated with Bernard, Brewers of Edinburgh, at their Newcastle district office as a stocktaker. In 1941 he moved from T & J Bernard to their systems, Stan was appointed section Having been out with the stocktakers at Archibald Arrol & Son, a subsidiary of Ind leader for the North East stocktaking area, Westoe Brewery, but never actually doing Coope & Allsop Ltd. In their Newcastle under the direct control of head office at the job, this was Stan’s initiation to office. This district office had three different Burton-on-Trent, he was completely

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trade and I.L.T.S. members old and new is a great joy and pleasure to him. He especially would like to thank Dorothy and Norman Clements for their many years of friendship and all the times they have looked after him not only at A.G.Ms., but also in their own home, and in conclusion would also like to thank myself for running him to and from different meetings, which he would otherwise not have been able to attend. My riposte to that would be that it has been a pleasure. Having been president of our Institute since 1980 he feels that he ought to hand over the chains of office to a younger president in the near future.n

Next Institute Training Seminar commences March 16 to Mar 20 Next Institute exams. take place on Thurs 16 Mar For further details contact the Secretary

Page 5

remained living in the family house at Cleadon near Sunderland until 1983 when he moved on to his present abode at East Boldon. An Anchor sheltered accommodation which gives Stan much freedom and independence. After serving Ind Coope for 33 years in 1973 his eyesight started to fail him, it got steadily worse and it became obvious that Stan would have to retire because of this ailment. The firm worked out his pension, the amount with which he was not particularly happy, he suggested to the firm that in their interest and his own they should make him redundant. This point of consideration was snapped up immediately and a new assessment of pension, which was satisfactory to him, was put forward and accepted. Stan now in his twilight years is still a very enthusiastic member of the I.L.T.S. and his association with the

The Magazine of the Institute of Licensed Trade Stock Auditors

autonomous of any local control. The result of each stocktake would go to the local office and a copy to head office. Eventually Ind Coope was merged with Tetleys and Ansells to form Allied Breweries. All personnel east of the Pennines were now under the controlling orbit of Tetleys. He was rather sad to loose the control of the highly sophisticated administration of Burtonon-Trent. One of the more interesting people Stan met and worked with at Ind Coope was a gentleman by the name of Fred Burrows. Fred was a retired chief superintendent from Scotland Yard and M.I.5 and was employed as the head of Ind Coope’s fraud squad. Stan and Fred were engaged many times investigating any suspected fraud within the managed house systems and district offices. Stan picked up many points of examination and interrogation of area managers, hotel managers and staff, and the methods of questioning taught Stan a great amount when dealing with district managers and stocktakers. In 1953 Stan received a note from Ind Coope at Burton advising him of the intended formation of the association of stocktakers. The firm had no objection to his participation and he decided to pursue the matter with Mr Paul Murphy, who was the instrumental motivator of this society. He attended several inaugural meetings in Bradford, where both Norman Clements and George Webber were present. Unfortunately he was not able to attend the meeting for the signing of the memorandum and articles of the association, hence the absence of his signature on the memorandum. In 1957 Stan was travelling to Amble in Northumberland with his third child Jennifer, who was now 13, they were involved in a serious car crash. Jennifer was killed and Stan received numerous injuries including a fractured skull, a fractured pelvis, dislocated shoulder and also had internal injuries. He was unconscious for several days and the inquest on his daughter Jennifer was postponed on numerous occasions until he was well enough. In 1969 Stan received a further blow when his wife Helena died from cancer. This was a testing time for Stan after all he had been through, but his sense of strength and fortitude pulled him through. He

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as a normal email with a fax or voice file attachment. With an efax or ecall number it is possible to receive multiple faxes or voice messages at the same time, without the need for extra telephone lines and without the associated hassle or costs of faxing (paper, maintenance, servicing and physically feeding pages through) and voice mail. Using standard PC Windows software, faxes and voice files are opened. These can be deleted, filed, printed out and archived or forwarded to other email addresses, the choice is yours. “Efax.co.uk provides the user with complete flexibility, to manage all their fax and voice messaging. This gives every individual complete control over handling their communications from a single computer, at any time, anywhere in the world”, said Jeremy Crooks, Product Marketing Manager, Messaging Solutions, for efax.co.uk Simple to set up Potential users can trial each service free, for fourteen days. Go to efax.co.uk’s website at http://www.efax.co.uk to set up their own individual, efax or ecall numbers with minimal registration information. For a nominal annual fee, the user gets their own BT Local rate or National rate telephone numbers they can give out to friends, business colleagues, clients and contacts.n

Retail Businesses

Page 6

As a business consultant I am always helping to fill in Profit Forecast forms from various banks. They ask for other direct costs other than the cost of sales, when working out the gross profit percentage on the total non-vat turnover. I have one argument against these forms as they ask for other direct costs as well as purchases or cost of sales. These costs vary from business to business so the gauge for judging the Gross Profit margin is not consistent for the retail businesses under consideration. In cash trade retail businesses like pubs, hotels and newsagents the usual percentage gross profit margins found are 45 to 60 %, 60 to 80%, 18 to 20% respectively. The percentage gross profit margin on the non- VAT turnover is only arrived at by cost of sales or purchases deducted from the turnover to give the cash gross profit. All other Direct costs should be under the overheads column in the Profit & Loss account. If one brings in other direct costs in the gross profit percentage calculation this will vary from business to business, so will not be consistent. I think people get confused with manufacturing accounts and retail ones. Another item that I get concerned about is the depreciation figure that accountants always put into the overheads of a profit and loss account. These figures are not real, only book ones, as in fact all depreciation figures are added back to the net profit for tax purposes. Also in real terms the actual net profit is increased by this amount. I know why accountants do it this way, as they want to transfer to the current asset side in the Balance Sheet a truer picture of the net profit. This is all right in theory, but no help for the person running the everyday financial side of the business in real terms. My booklet ‘ Basic Financial Know-how For Small Businesses’ explains this in more detail.n This article is one of a series submitted by: John Gomersall, Independent Business Consultant , 27 Clifden Rd., Worminghall, Nr.Aylesbury, Buckinghamshire HP18 9JR

FELLOWSHIP

Mobile Phone Warning Members are warned to be on their guard about the latest scam to hit mobile phone users. Basically someone will phone you on your mobile phone claiming to be a network engineer and ask you to key in #09 or #90 so that he can check your phone. They can then get information from your Sim card which can then be used to run up a bill at your expense. Vodofone say that their engineers would never call a customer direct and their advice is to end such a call immediately. New Employment Rights New employment rights recently came into effect. For your information the following are the main points of the new legislation. ---On November 23rd 1999 employees’ rights to three weeks paid annual leave was increased to four weeks per year. ---In July the Employment Relations Act 1999 received Royal Assent and the provisions covering employment rights came into effect on December 15th 1999. After a year of continuous employment a parent will now be entitled to take up to thirteen weeks parental leave if their child is born or adopted after December 15th 1999. It is unpaid leave and there are limits to how much can be taken each year. However the employer has the right to delay any leave for up to six months if the business requires it - so for example a seasonal hotel or a public house over Christmas would have some redress. The postponement must be reasonable.The availability of such leave lasts until the child is five years old. The take up rate may not be high as this only applies to unpaid leave.The same act allows employees to have unpaid time off to deal with domestic incidents such as accidents, family illness or problems at school. ---The upper limit that may be awarded for unfair dismissal has been increased from £12,000 to £50,000. This makes it even more imperative to follow the correct procedure when disciplining staff.

All members can apply, after seven years of having qualified, for elevation to fellowship. In return we give you:

Stockcheck

15% off all merchandise purchased through the Institute

The Institute of Licensed Trade Stock Auditors are pleased to announce that franchisees and stocktakers within Stockcheck Ltd. are being encouraged to obtain professional qualifications. In recognition of his contribution to the catering and licensed trade, in particular to stocktaking, their Managing Director John Gilpin has been made the first ever honorary corporate member of the Institute. Their spokesman Bruce Thompson says that they are delighted to have him on board and that he looks forward to a long and mutually successful association. This, he says, will considerably boost the membership of the I.L.T.S.A. and give a qualification to many more of the countries leading stocktakers.

Members brochure - asterisk beside your name Highlighted entry in Licensee advertisement Certificate of Fellowship Status within the profession Use of the designation FILSA A quick note or ‘phone call to the Secretary starts the ball rolling, so if you qualify do it today. Tel 0131 315 2600 7 Comely Bank Place Edinburgh EH4 1DT

Regional Representatives A system of regional representatives now covers the whole of the United Kingdom. The idea of having a local representative is that the membership will have access to someone who they probably know and who will know their area. Some of the roles that Area Representatives may be expected to become involved are as below:Organising sickness cover for colleagues; Advising on holiday relief; Representing the Institute at relevant events; Passing on details of local events or news for the magazine; Advising where members may need assistance on large contracts; Being involved in local meetings and drawing up support amongst colleagues; Encouraging non-members to join the Institute; Informing the secretary when there may be a call on the benevolent fund; Possibility of attending disciplinary hearings. The list is not exhaustive, should any member have any queries please contact either their regional representative or Ron Foster. Set out below is an up to date list of representatives for your reference. England Beds. - Barry Ross - 01234 344663 Bucks. - Norman Clements - 01491 575451 Cambs. - John Glaysher - 01206 211564 Derbys. - Leslie Kerr - 01332 292233 Devon & Berks. - Norman Clements - 01491 575451 Devon & Cornwall - Paul Gilder - 01726 843366 Dorset - Richard Grafton - 01305 813225 Gloucs. & Hereford - Danny Knight - 01452 521080 Hants. - Jeff Batchelor - 01329 314816 Herts. - Martin Roslyn - 0121 744 4896 Kent & Essex - Anton Ellender - 01303 277382 Lancs. & Cumbria - Les Graham - 01254 240054 Leics. - George Abel - 01664 850120 Lincs. - Chris Machin - 01777 817821 London & Middx. - John Walden - 0181 856 1026 Midlands & Warks. - Martin Roslyn - 0121 744 4896 Northants. - David Scott - 0115 952 1393

Oxon. - Norman Clements - 01491 575451 Salop. - Neil Acocks - 01746 762297 Somerset - David Mills - 01373 300035 S. Humberside - Graham Potter - 01482 815411 Staffs. - Brian Daykin - 0121 422 6421 Suffolk & Norfolk - Pat Simmons - 01508 489628 Surrey - Roy Smith - 01932 570900 Sussex - John Fincham - 01273 304344 Tyne & Wear - Charles Robinson - 0191 215 1785 Wilts. - Stephen Dauwalder - 01722 340069 Worcs. - Bill Spry - 01386 556911 Yorks. North - Kate Watson - 01924 473225 Yorks. West & South - Rita Broadbent - 01924 473225 Scotland South - Russel Watson - 01383 824780 North - Andrew Wardrope - 01540 661625 Wales - Dave Barnett - 01654 710228 N. Ireland - Martin Dinsmore - 01265 44666 Ch. Islands - Fiona Sturreck - 01534 605065 Eire - Martin Kirwin - 00 353 414734

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Tel: 01227 280522

The Following Press Release has been sent to the Trade Media

The Magazine of the Institute of Licensed Trade Stock Auditors

NEWS ROUND UP

The Magazine of the Institute of Licensed Trade Stock Auditors

FLYING STOCKTAKER UPDATE David M Barnett

y friend, William rang “Are you free on Saturday?” I wasn’t but said, “Yes”, because I guessed what was coming next. “Then would you like to come flying?” Would I …….? The invite was to ride as P2 on a business trip to southern England and we would be back at teatime. Two days later there I was at 08.15 at his airfield, a couple of miles down the road. We took the wraps off his aircraft and wheeled it out of the hangar. It is a single engine twin-seat German built Air Force trainer, type BO209 and very nice too. We took off at 08.50 and upon reaching cruising altitude, William let me fly. It was a first for me as I had not flown using a joystick before, always a control column and it was so sensitive it literally required finger and thumb to control it. After flying inland for a while it became clear, scanning long distance horizon, that visibility would prevent us from making it even across the border so we decided to divert to Caernarfon for coffee. Ah well, still a nice little flight even if it wasn’t to our intended destination. I duly turned left, I mean north, and was admiring

Refuelling at Caernarfon the view over Bala Lake when it happened. The engine misfired! Just the once, but it didn’t half get our attention! William said a naughty word then “I have control” and immediately switched on the fuel pump and changed tanks, which in training is the standard emergency response to an engine hiccup. He turned away from the lake whilst we both looked for a long flat field just in case. All the instruments were scanned for a clue

as to any problems but apart from the cylinder head temperature showing very cold all was normal. We then went through what may be the cause. There were a few options, fouled plugs, carb icing, fuel starvation and after what seemed like an endless journey, but was probably only

Taxiing at Caernarfon thirty minutes waiting for the engine to pop again, we landed at Caernarfon, refuelled and went for our coffee. William called an engineer at Welshpool Airport who maintains his plane and discussed the incident. It was decided to fly it to Welshpool for an engine check. Following an uneventful flight, we landed and parked up, returning home by train. We later learned that the problem had been dirt particles in the fuel. Returning through Machynlleth by train, William pointed out the field in which he once made a successful forced landing in his previous aircraft with cockpit smoke and a minor electrical fault. It was fixed and flown out the next day. The conversation included other close shaves and I joked if he was a cat, half of his lives would have gone and should I really be flying with him? But seriously, he has over 39 years flying experience and I noted a very, very careful methodical pilot. I learned quite a lot from that days flying. Finally, I was to accompany him yet again on a three-day trip to Germany where the propeller was to be changed for a three bladed job. I was even more exited about this trip and after returning from my Florida break,

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Web Site of the Month www.blacksheep.co.uk This month a site near to my heart - Black Sheep Brewery in Yorkshire.Included in this professionally produced website is their ‘in house’ magazine Ewe ‘r’ baa…red which is an interesting read in itself .As you would expect there is a short history of the Black Sheep Brewery, details of all their brews and pictures of some of the many public houses selling their products.There are maps available and walks from some of their pubs.The site ends with links to some associated sites - altogether a well though out site and well worth a visit. Ed.

joined him for some pre-flight planning. This he did by computer programme to be downloaded to the G.P.S. systems. One was a moving map unit seen fitted to the main panel and the second, a hand held one used by the co-pilot. I left armed with several charts and the flight plans and was to familiarise myself with the route and mark all diversion airfields nearest to track in case of iffy weather or other reasons. Although the G.P.S. database would tell us the nearest diversion airfields en route, it’s nice to know what you are looking out for. I burned the midnight oil doing all this and was quite pleased with the resulting list of info and even more excited by now, but it was not to be. Alas dear friends and colleagues, I can confirm to you that sods law was very much alive and flourishing thank you. The day before departure the

Parked at Welshpool awaiting engine stripdown weather was bad, furthermore, the forecast said we would not be flying anywhere for a few good days and whilst William could wait for better weather, I could not, and was obliged to re-shuffle jobs and return to work. He assures me I am still on his list and since he flies around 100 hours a year there will hopefully be another time.n

STOCK AUDITOR Number 11

March 2000

The Launch of Innstore T

he Yorkshire Regional meeting was held at the Headingley Stadium on Tuesday 15th February. The event was organised by Rita Broadbent, the regional representative for West Yorkshire, and although it was a poor night weatherwise a pleasant and informative night was had by all who attended. Headingley is a world famous bastion of sporting tradition, renowned for its rich heritage of international and county cricket as well as Rugby League. The four acre site on the edge of Leeds City centre is also the home of the Headingley Experience which is an ideal venue for conferences and seminars. The four-storey refurbished complex houses state-of -theart technology. Computer/ video projection and sound systems are installed within the six suites. John Conroy of Innstore, who gave a short presentation introducing his company, kindly sponsored the evening. Discussions originally started with John Conroy involving a mail shot to over 50,000 licensed trade outlets and it became obvious that there may well be further opportunities for our members. If you think of the

John Conroy describes the concept of Innstore client base of all our members you can appreciate the potential scale that we are talking about. Basically Innstore is an exciting new company that specialises in the provision of products and services to the licensed trade. Their aim is to fundamentally affect our client’s ability to succeed by improving bottom line profitability. This can be done in many ways including

•

Finance/refinance . Innstore have many contacts with large financial Institutions

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Sale or purchase of pubs/hotels - new low cost methods

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Technology - by harnessing the power of

technology including the web many small businesses can be enhanced. This is a proven area of expertise. Innstore is introducing new products and services all the time and is looking at recruiting some of our members to act as certified Innstore business advisors. After a short training course members would be able to broaden their skills and significantly increase their income whilst at the same time help their clients become more successful. A pilot programme is shortly to be run in the North but it is envisaged that Innstore would quickly become nationwide.n Further information can be obtained from John Conroy 01405 720114 or Email jconroy@bigpicturesoft.com or Bruce Thompson 0131 315 2600

The provision of watchdog accounting - giving quarterly accounts with detailed explanation. This can often result in corrective action being implemented at an early stage.

•

Huge discounts on all products and services for the trade - including beer , although restrictions do apply.

•

Cheaper pub insurance - this is guaranteed.

AGM Details - Page 7

Secretary’s Corner - page 3 Patrick Simmons - page 4 All about Absinthe - page 5

QE2 - page 6 Checking Barrel Contents - page 7 Breweries of Britain - page 8

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INSIDE THIS ISSUE

STOCK AUDITOR The Magazine of:

Chris Swift - Editor

fter spending a long weekend with the children it is perhaps with relief that I returned to work for something of a rest. I do feel though that the few days away have helped me recharge my batteries, and I do think that it is important, no matter how busy we are, that we make time to spend with family and friends. On a different note I wonder how many of you know what was special about the 2 nd February 2000. The answer may be at the bottom of this article. The Licensed Trade in general is still in the doldrums and a recent survey published by Key Note makes distressing reading. One pub will go out of business every day between now and the year 2004. In the ten years since 1990 it is estimated that 3500 outlets have closed. The casualties are likely to be smaller outlets, which are under threat from the new ‘superpubs’ in town centres, and stricter Drink Driving laws will affect the rural pubs. A similarity in the first instance can be drawn with how supermarkets nearly caused the demise of the family run corner shop. As we will see later there may be some hope for the rural pub. Of course, on a positive note, the pubs that do survive will probably see their turnover increase. The growth area in the coming decade is said to be a further increase in food sales, which is a continuation of the trend started in the seventies. In addition Key Note expects many thousands of pubs to

The Institute of Licensed Trade Stock Auditors 7 Comely Bank Place Edinburgh EH4 1DT Tel: 0131 315 2600 Fax: 0131 315 4346 Website: www.iltsa-uk.freeserve.co.uk E-mail address: StockAudit@aol.com

change hands during 2000, so there should be plenty of work for our members. To conclude, Key Note forecasts that in 2004 the number of pubs in the U.K. will fall to around 49,000. We are planning to increase the size of ‘Stock Auditor’ in the coming months to twelve pages but to do that we do need articles to fill it. As usual my thanks do go to the ‘stalwarts’ who keep the magazine ticking over, without the likes of Trevor Knight and Jim BowmanSmith this magazine would have no chance of being produced. Trevor Knight continues his informative article on the Breweries of Britain, this month visiting Devizes, Wiltshire whilst Pat Simmons answers questions on his return to the Council. Jim Bowman-Smith whets our appetite of cruising by giving us some details of the liner, Queen Elizabeth II whilst I did a little research on that fascinating drink, Absinthe. The front page is dominated by the Northern launch of Inn Store, which I believe will give you something to think about. Anyway I do hope that you enjoy the March edition and I look forward to seeing many of you at the forthcoming A.G.M. I nearly forgot, the reason that the 2nd February was so special was that it is the first time in over eleven hundred years that the date was entirely composed of equal numbers – think about it – the last date was 28/08/88.n

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White Horse Press Ltd 65-67 John Wilson Business Park Chestfield Whitstable Kent CT5 3QT

All Subscriptions payable in advance. Published 12 times per year post free: Annual subscription £24 ISSN © Institute of Licensed Trade Stock Auditors, 2000

Secretary’s corner

By BRUCE THOMPSON

ne of the questions most often put to me is “How can you spend all day doing that job?” or even in some cases the statement “I don’t know how you can do that all day”. Whatever the mode or attitude, people don’t seem to treat our profession with the grace it deserves. Even when I buy new shoes, the existing ones damaged on the toecap, I have to explain that I kneel a lot, but that I am not a minister of the church. After a bewildered look and an explanation of my job, the subject is quickly changed to one of more interest to the sales person. The same thing happens at the barbers when the inevitable question comes up “What job do you do?” a short explanation and we’re on to the weather. I suppose to others, the job description seems to imply that we count bottles all day, sort out purchases and then produce some sort of report for clients to argue about. This, in reality, is so untrue. Experience, professionalism, intrigue and skills of working with figures all come into it. Each client and each premise is different, some are clean and well organised, others dirty - and clients - well each one has their own character which makes every job so different. I don’t think any of us find the job totally boring or monotonous - if we did we wouldn’t do it. Our in-depth knowledge allows us to identify and investigate problems which others might not see. The challenge of being a professional Stock Auditor is immense - people and jobs very often depend on us, and that including management. Staff often see us as out to catch them, but they only need worry if dishonest. I would never hesitate to report anyone, management or otherwise, who I suspected of being “at it”, but that doesn’t

mean I am obnoxious or loathsome - I am merely doing my job and justifying the fee charged. As a matter of fact getting on with clients and staff is very important for they must trust us and feel able to talk whenever they wish. Walking into premises with an overpowering attitude is not within our remit - we are there to do a job, report on any anomalies, be courteous and understanding and above all to be discreet, loyal and honest. In bygone days we were considered to be bottle counters, but that phrase has long lapsed. Expertise is essential as is proper training. With so many different drinks, cocktails and varying price structures we have a lot of calculations to make. VAT has not made the job easier and nor has the pressure from many clients for some sort of consultancy. I would accept that, from their point of view, this is immensely beneficial, but from ours it takes up valuable time and must be costed into the fee. Our knowledge, you, must be considerable, for bad advice or inability to answer questions can be counter productive. The number of times, and I am sure that we have all witnessed it, that clients tell you that they understand the stock report in its entirety, and then drop a clanger by quoting wrong figures is remarkable. We have to make sure that everyone is reading it properly and that they benefit to the full by information supplied. We must keep on top of profitability and warn clients of any downward trend. Licensees today want to change from 25ml measures to 35ml and most consider retaining the same selling price in an effort to attract more trade. There is no guarantee that this will happen, and the more pubs

that go down this route, the less the incentive. The impact on gross profit is quite considerable and serious thought must be given to changing measures. ILTSA members should be able to prepare a presentation for their clients highlighting the affect of such change on their profits. At a changeover last week I discovered that main brand whisky was being sold in 25ml measures and malts in 35ml which is of course illegal. Each of vodka, gin, rum and whisky must be sold in one or the other measure - they can not be mixed. As a word of caution to our members, I was recently taking stock in the cellar of a fairly large hotel when a delivery of minerals arrived. There was an inherent stock problem so I decided to hide and view the delivery procedures. One deliveryman took the cellar person (who was of undefinable gender) to the far end of that area whilst the other delivered a somewhat considerable order. The latter eventually found his companion together with the hotel employee and requested a signature for the goods supplied. This was given without question, at which stage I appeared and checked the delivery. Ten cases of minerals short, four of juices and various other discrepancies warranted sending for the manager. Amidst pleas of clemency from the guilty parties, the cellarman was suspended and the suppliers company notified of this possible fraud. This is how easy it is, and how a little diversion can create major discrepancies because these at retail value would have been considerable. Summer will soon be with us, and with it hopefully good weather and good fortune for the licensed trade.n

Merchandise The following are available through the Institute All prices include VAT (where applicable) and postage 10% discount to Associates and Members 15% discount to Fellows Discount only applies to merchandise

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Goods Received Pads - £7.00 Bar Requisition Books - £5.50 Dipsticks - £18.50 Ties - £7.50 “Taking Stock” books - £18.00 Hydrometers - £70.50

T An audience with ..... Patrick Simmons FILSA Pat Simmons:- I have been a stock auditor for more than twenty seven years, and most of that time I have worked for myself. I enjoy the life style, as I am sure that I would not be at all happy in a “normal 9 to 5” job. Meeting and talking to people has always been one of my pleasures and that is an important part of the job of stock auditor continued at the top of the next page

aka “the little green fairy”

new drink is making an appearance especially in the youth oriented bars such as Student Union Bars and night-clubs. I am of course referring to absinthe although strictly speaking it is not a new drink. The drink has been imported through a loophole in current European trading laws but the story of absinthe is both interesting and controversial. Various brands are now on the market including French Trenet at 60% ABV (equivalent to 120 US Proof ) and Hapsburg Absinthe from Bulgaria at a whopping 72.5% ABV ( equivalent to 145 US Proof ). The drink is thought to be dangerous, not because of the high alcoholic content, but because of the hallucinatory effects that it can cause.

been used. The constituent herbs are marinated for about eight to ten days in the base alcohol and then distilled, the result is an emerald coloured spirit. The Effects of Absinthe Historically many believed that a ‘spirit’ lived

The symptoms such as convulsions, hallucinations and psychoses have been scientifically proven to have been caused by the presence of Thujone, a toxic chemical present in wormwood. It is interesting to note that a form of wormwood is also used in the manufacture of some vermouths - presumably care is taken to omit thujone.

1797 The formula was passed to Henry Louis Pernod of Pontarlier in France who opened the first distillery in Switzerland.

How to Drink Absinthe Absinthes, and indeed all the associated drinks, are usually served diluted with water and ice. The ‘classical’ method of serving absinthe is to put a little in the bottom of a glass. A special absinthe spoon is then used to slowly drip water though a sugar cube thus turning the absinthe cloudy.

In the eighteenth and nineteenth centuries many artists such as Manet, Degas and Picasso painted or depicted ‘ Absinthe ‘ in their art. 15th May 1906 - Absinthe was banned in Switzerland. 4th March 1915 - Absinthe was banned in France.

Beverages without wormwood are known by brand names such as Pernod, Anis, Anisette, Pastis, Ouzo and Raki.

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Manufacture and Production Absinthe is an aromatic, dry and highly alcoholic herbal spirit, which is somewhat bitter in taste. It uses as its base a spirit such as brandy, which is high in alcohol. To that is added anis (liquorice flavour) and the notorious wormwood plant (Artemisia Absinthium) and other optional ingredients such as hyssop, fennel, angelica root, aniseed, peppermint, cloves, cinnamon and even the juice of spinach, nettles and parsley have

Such articles as the above resulted in the French banning its sale and production. Article 367 of the French Legal Code states:Art.367. - The fabrication, the circulation and the possession with the aim to sell, and the sale of Absinthe and other similar liquors which characters are determined in the decree are forbidden.

Origins 1792 First written recipe formulated by a Frenchman, Dr.Pierre Ordinaire.

1918 Pernod fils established a factory in Tarragona, Spain to produce both absinthe and a similar beverage without wormwood to be distributed to countries prohibiting true absinthe.

deranges the digestive system, weakens the frame, induces horrible dreams, and may end in idiocy or paralysis”

within the absinthe, which is released, with the opening of a new bottle. Ernest Hemingway , Toulouse-Lautrec and Oscar Wilde are all said to have indulged in absinthe and some say it was the cause of Van Gogh cutting off his ear. W.N.Edwards, F.C.S. wrote in The Beverages We Drink published in 1898 “The seat of manufacture of this dangerous beverage is in the Swiss canton of Neufchatel… It is largely used in France and America, and its use is growing in England….Absinthe drinking has a most deleterious effect on the nervous system, and regular tippling utterly

Another method is to dunk a spoon of sugar into the liquid, setting light to the spoon until the sugar has caramelised, then dipping the liquid sugar into the glass of absinthe. Water can then be added to extinguish any excessive flames before drinking. Pastis will turn cloudy white when mixed with water whilst anis turns greenish yellow when mixed. Any clients who are serving absinthe should be made aware of these facts. At the moment Absinthe complies with the relevant ‘Flavourings in foods regulations ’92/94/96' but who knows what compensation claims may follow if customers are allowed to drink too much. Another danger is that because of its high alcohol content it should be kept away from flames and heat!n

T Your was your first job? Salesman at Burton’s the tailors How much was your first pay packet? £4/10/00 What was your best subject at school? Maths. If you weren’t a stock auditor what would you like to do? I would like to work outdoors, probably on some kind of conservation work. What is your favourite time of day, and why? Late evening, after work, so that I can be with my wife. What was your worst mistake (be honest )…..? I over valued stock at a changeover in a retail store, by forgetting to deduct VAT before reducing to cost. (No one noticed not even the other stock auditor). Name one person you would most like to have dinner with and why? Charles Darwin. I would love to be able to discuss evolution with him. What is your favourite place? The South of France. (Even if they do not like our beef). What is your biggest fear? I have an irrational fear of sharp objects. Who in the Licensed Trade do you admire most? All the HARD working licensees. If you have to admit to having a fault what would it be? Leaving things to the last minute, including this questionnaire. What is your favourite book? Lord of the Flies. What is your favourite film? Titanic. What is your top time saving tip? Be organised and file everything straight away. What really makes you angry? Cheats. Who, or what could you not live without? My wife, Barbara. What do you spend most money on? Living. What’s the best device or gadget that you have ever bought? My hands free kit for my mobile phone, because people are always calling me when I am in the car. What would be an ideal day away from the office? A day trip to France with my wife. What is the most over-rated virtue? Thrift. What advice would you give anyone starting out as a stock auditor today? Think very carefully before you commit yourself to the long hours and the travelling. As Prime Minister what would be your first task? Overhaul the Social Security benefits to ensure a fair system to all and to avoid paying those who cheat the system. What attributes do you think make a good stock auditor? Patience, understanding, accuracy and a sense of humour. What is the highest compliment you have been paid? Thank you for being a friend as well as my advisor, from a client who retired after I had been with him for fifteen years. Finally, what would you like your epitaph to be? Whilst on this earth he tried to help those less fortunate than himself.

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NEWS ROUND UP Gordon Brown announced last year that he would introduce an Energy Tax to come into force from April 2001. The tax will hurt major companies that are big energy users but it will also have an effect on small businesses such as pubs. Under the terms of the new levy, the government plans to raise £1.75 billion by taxing companies on the amount of energy they use. Licensees will receive their bills after April 2001 which will show the cost of power used plus VAT plus 8% energy tax. The tax will be applied to coal, electricty and gas - but not oil. * * * * The latest Key Note Report predicts that 1500 pubs will close between 2000 and 2004.The report also suggest that alcohol sales will reduce whilst food sales will increase. The major message for survival is, pubs must become more focussed.

The Breweries of Britain continued frompage 8 The Bartholomew dynasty There were no children to succeed Henry on his side of the partnership so when his partner John Smith Bartholomew died in 1923, John Bartholomew Jnr. succeeded his father as Managing Director. Henry Wadworth who had been Chairman of the company since its formation, died in 1929, aged 78, as a result of a fall from his horse. In the inter-war years, the new Chairman, John Bartholomew led a significant expansion of the company, which included the acquisition of Godwin’s Brewery in Swindon. The effects of war Conditions changed dramatically with the onset of the Second World War. Brewery workers joined the Forces, supplies were rationed and Wadworth and Company were directed to give priority to supplying the Armed Forces. American regiments virtually took over Devizes and demand exceeded supply. Wadworth beers were supplied to RAF camps and to the ‘sealed’ camps set up before D-Day. The present John C.Bartholomew, grandson of the original Bartholomew succeeded his father in 1952; his son Charles has been Chairman and Managing Director for the past few years. So, today Wadworth and Company continues to be a private company owned by the Bartholomew family. The success of 6X The most important single factor which has been at the heart of Wadworth’s success

In Honour of the QE2

has been the popularity of 6X. It was first brewed in 1925 for bottling under the name of ‘Green Label’ but its popularity as a ‘real ale’ grew especially in the 1970’s The popularity of ‘real ales’ has continued to grow during the last two decades, partly due to the efforts of societies such as CAMRA. The success of Wadworth’s ales was reflected in the increased demand through the Free Trade and the enlargement of the company’s Tied House estate as a result of the Mergers and Monopolies Commission’s decisions. Wadworth and Company now have over 200 pubs stretching from Berkshire to Somerset and from the south Midlands to the South Coast. Agency agreements and the growth of supermarkets has meant that the company’s products are now on the national brewery map. The Wadworth Shires Harry, Buscot, Dan and Waggoner are the latest in a long line of Shire horses, which, apart from a brief interruption have served Wadworth for over 100 years. In their heyday, more than 40 Shires were used by the Brewery to deliver beer to local inns and hostelries. The Wadworth Shires are still a familiar sight plodding their leisurely way through the ancient town of Devizes. Carrying a load of approximately three tons they deliver to pubs within two miles of the Brewery and are a much-loved part of the local scene. Each horse weighs about 18 cwt and stands an average of 18 hands high. The daily feed consists of best hay, bran, molasses, brewery grains and two pints of 6X!n

by Jim Bowman-Smith

This magnificent craft is a worthy symbol of British expertise. Built by John Brown & Company (Clydebank) Ltd., and the Upper Clyde Shipbuilders Ltd. in September 1967 she was a true successor of all the wonderful ships built in Scotland. Some interesting facts about the catering operation are:-

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Passenger Capacity 1750, Crew Members 1016, Cabins 926, Decks 10 The staff structure could be compared to a large five star hotel with all the facilities. Catering Staff Structure Executive chef 1, Chefs de cuisine 5, Chefs 107, Food servers 178 Commis food servers 13, Wine stewards 22, Bar tenders 17 A typical stores list and facts During one transatlantic trip alone the following items would be used Champagne 1,000 bottles, Beer 12,000 bottles, Assorted wines 1,850 bottles, Spirits 900 litres Cigars 205 boxes, Cigarettes 5,000 packets The amount of tea bags used each day on the QE2 would be enough to supply a family for a whole year. Enough fruit juice is used in one year to fill up the ships two swimming pools eight times. QE2 sends all its used cooking oil ashore for reconstituting into animal food. Approximately 600,000 litres of beverage is consumed annually. The QE2 carries 37 different wines from eleven countries and four continents, 171 various spirits and liqueurs. Fifty brands of cigarettes and twenty-one various types of cigar.

It would still be a pleasure to do the stocktake!

WEB SIGHT OF THE MONTH

Point your browser at http://www.pubworld.co.uk There is lots of information about pubs and the pub trade with information ranging from pub games to information about suppliers. There is even a link to this magazine’s site. If you know of a good web site that is related to the licensed trade then please tell us about it.

CLASSIFIED ADS. Cost 50p per word - maximum 100 words. Members free of charge Call 01227 794714 to place an advertisement For marketing assistance call AC Marketing Tel: 01227 794714 Fax: 0870 063 2925 E-mail acmarketing@ukgateway.net

Have your Classified ad. Here

INSTANT CHECK ON BEER BARREL CONTENTS

portable weighing device that gives an instant check on the contents of barrels and kegs used in the brewery trade, has been developed by Weighcheck Limited. The device which offers a unique and accurate method of determining the remaining quantity of beer in partly-used barrels, is based on a simple weighing principle. It comes in two models: the CellarMate can handle any barrel size up to 36 gallons; the smaller CellerMite is designed for barrels up to 15 gallons. Designed and manufactured by Weighcheck Limited of Altrincham, the device is targeted at brewers, stocktakers and individual licensees. Both models are completely portable, weighing less than 5lbs, so that they can be taken to the barrel to be weighed, without the need for manhandling of heavy barrels, or adjusting C02 gas lines. The user first calibrates the CellerMate (or CellerMite), by simply weighing an empty barrel with it. The device incorporates a one-touch zeroing facility, so that the readoff scale is automatically set to allow for this empty barrel weight. Subsequent weighing of the same size barrel will then provide an instant read-off of the exact volume of beer remaining.

Ease of use is a key advantage of the device: the barrel has only to be tilted two inches off the ground, enabling the CellarMate/ CellarMite to slide into place under its rim. Jim Barry, Weighcheck’s Managing Director, believes the device is the solution to many long-standing weighing problems in the trade: “There are tremendous advantages to the licensee in being able to see, at a glance, how much beer is left in a barrel. Stock control can be improved, with potentially-important financial advantages,” he says. “Existing systems suffer either from inaccuracy or prohibitive cost through the use of unnecessarily expensive electronic technology. The CellarMate combines the benefits of ease of use with guaranteed weighing accuracy with no interference with dangerous gas pipes. Yet it is a simple device, with an entirely hydraulically sealed system, and thus can be sold at a price that will be attractive even to individual licensees”. CellarMate and CellarMite are robustly made to withstand years of use. They have already been subjected to rigorous practical tests which have confirmed their reliability and the devices are now being launched onto the UK market.n Weighcheck Tel: 0161 926 9737 Fax: 0161 926 8573

Book now for the AGM in May France Friday 12 May

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THE BURLINGTON HOTEL, FOLKESTONE, KENT Friday 12 May to Sunday 14 May Two nights’ extravaganza for only £120.00 including - dinner, bed and breakfast, 2 glasses of wine each night,buffet lunch on Saturday, entertainment on Friday Evening and a Saturday morning tour for partners.

A coach will collect delegates, partners and friends from the hotel at 9.30 a.m. We will cross the Channel, have a short tour of the area, some lunch and leave everyone in a shopping area for a couple of hours before channel hopping back to our hotel at about 5.30 p.m. the cost is now confirmed at £17.50 and £12.50 for children

T The Breweries of Britain

WADWORTH

A Series by Trevor Knight - Part Fourteen

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iltshire is an ancient county, extraordinarily rich in the ritual monuments of early man. The rolling chalk hills bear powerful witness to the once great civilisations of the Stone and Bronze Ages between 5000 and 3000 years ago. The great and ancient stone circle of Stonehenge is one of the wonders of the world, as old as many of the great temples and pyramids of Egypt, as old as Troy. Built over a period of 250 years, it stands at the centre of an extensive prehistoric landscape. Many experts believe that the site had a religious purpose in connection with sun worship. Further north in the county, the stone circles of Avebury were constructed in Neolithic times and the purpose of the huge prehistoric man-made mound of Silbury Hill remains a mystery. The vast, green expanse of undulating chalk downs of Salisbury Plain, with its awesome atmosphere of pre-history, dominates the centre of Wiltshire. Modern farming has reclaimed huge tracts of the land and some parts of the Plain are given over to military use, but its essential grandeur remains. In the south of the county is Salisbury, built at the meeting point of four river valleys and sheltered by downland, it is one of the most beautiful cathedral cities in Britain. The cathedral is the only English cathedral largely conceived and built in a single style, Early English Gothic. The magnificent spire, at 404 feet is the tallest in England. To the north of Salisbury Plain, the Kennet and Avon canal bisects Wiltshire from east to west through the Vale of Pewsey. It is a navigable waterway crossing southern England from Reading to Bristol. Completed in 1810, it is one of the country’s most beautiful waterways; passing over chalk vales and river valleys and winding its way through villages and market towns. The Caen Hill flight of 29 locks at Devizes, the longest in Britain, raises the water level 237 feet over a distance of two and a half miles. Devizes is the central market town of Wiltshire enjoying a rich heritage of fine Georgian houses and a Norman castle built in 1080 by a cousin of William the Conqueror. The patterns of streets originate from when the castle was built and survive virtually intact. The town boasts 500 listed buildings and the market place is surrounded by buildings in a mixture of architectural styles. The market cross is famous for the legend it bears of Ruth Pearce who, in 1753, asked

God to strike her dead if she lied about a corn deal - and was struck down immediately. Devizes is the heart of Moonraker country. According to legend, a local gang of 17th century smugglers fooled excise men when caught recovering dumped brandy kegs from the town pond. The smugglers pretended to be foolish, claiming that the moon’s reflection on the water’s surface was a round cheese, which they were attempting to rake in - hence the name Moonraker. Founded in 1875 The imposing red-brick building of Wadworth’s Brewery dominates the northern end of the Market Place. The Northgate Brewery with its impressive Victorian façade was designed and built by Henry Wadworth in 1885, and is still run as a family business by his descendants. Henry Alfred Wadworth The story of Wadworth and Company began in 1875 when the original Northgate Brewery was purchased by Henry Alfred Wadworth. At the age of 22 he already had six years brewing experience both as a pupil at a brewery in London and as manager of a small brewery in Devizes. Henry Alfred Wadworth certainly lived life to the full. When he bought Northgate he had just returned from a spell in Australia. His long hours at the brewery did not prevent him from pursuing his many passions which included hunting two or three days a week and ballooning. Henry was also the first man to cycle from London to Bath on his new iron- tyred bicycle, which was specially imported from France. Life long partners Henry was in partnership with his life-long friend and brother-in-law John Smith B a r t h o l o m e w. During the next few years the perfection of their

Devizes Wiltshire brewing methods soon outgrew the facilities at their first premises. So, in 1885 the new brewery was constructed over the site of a small sweet water well. The design of the buildings was typical for the period. Electricity distribution had not been developed and the only power assistance available at the time was a stationary steam engine. This limitation of power assistance resulted in the fashion of building a tall tower-like brewery using limited power to lift the ingredients of the brew to the top of the brewery tower and letting gravity power apply there after in the various stages of brewing. In the early days most of the Wadworth business was within a 30 mile radius of Devizes, however, Henry Wadworth always had an eye for new markets and prior to the outbreak of the First World War, became one of the first suppliers to the Army Canteen Board, which was later renamed NAAFI. continued on page 6

6X Full bodied and distinctive, 6X is one the South’s most famous ales. The beer is mid-brown in colour, malty and fruity with balancing hop character. ABV 4.3%

Farmers Glory A dark and delightfully hoppy beer with the aroma of malt and a dryish, hoppy after-taste. ABV 4.5%

Old Timer A rich copper-brown beer with a strong fruity, malty aroma and a full-bodied and complete flavour. A classic beer. ABV 5.8%

Number 12

May 2000

All About Pubco’s by Nick Bish - Secretary of the Association of Licensed Multiple Retailers

icensed retailing used to be part of the beer industry; pubs were a device for keeping the mash tuns full and the relevant government department was the Ministry of Agriculture, because beer is food and the Min of Ag was charged with feeding the nation. But above all the pubs were owned by the brewers. The Big Six owned the bulk of them and the regionals had most of the rest. Freehold freehouses were remarkable in most senses of the word. In 1977 managed pubs were a relatively new phenomenon. Most were operated just like tenancies with little or no realisation about the profit potential that they represented. Beer consumption was steady and the wholesale profits flowed nicely – who cared or saw the need for revolution? This was at the end of the era when the beerage really did rule and the culture was of paternalism and loyalty to the beer and the family company. Captain Peter or Colonel Richard would come out to visit the pubs and it really was

a grand occasion. In the spring of 1977 Courage introduced managed only estates and the first seeds of the retail revolution were planted. Serious attention was given to stock control, costs and above all to investment. The margins climbed and the profits came too. The first £1M jackpot was launched as a trade building promotion; there were banners on every pub and merchandising inside from floor to ceiling. When it was over some said “Thank goodness we can get back to normal”. But it was never going to go back; perpetual promotional was here to stay. The success of managed pubs, coupled with the new-fangled marketing approach, was first exploited by Grand Met and their Host group. Then Courage, with a nod to its parent group, invented Imperial Inns and Taverns; 16 semiautonomous regions, each with 100 managed pubs, were to be the way forward. It very nearly worked, but Grand Met never could resist reorganising a good thing and even the redoubtable Clifton Inns was

restructured, merged and eventually stifled. Imperial Taverns, for all its lean credentials, was suffocated by over management from an ever burgeoning Head Office where there was quickly a specialist department to second-guess every operational function. The experts inspected the regions, they

attended site meetings, they were everywhere; and they were very expensive. It couldn’t last. So the scene was set for the 90’s. The Beer Orders had cut vast swathes out of the national estates and it was clear that managed operations were only right for a select and small number of pubs and so the real phenomenon were the pubcos. The biggest of these was Inntrepreneur, the huge combination of the Grand Met and Courage estates spawned from the pubs for breweries swap. And Grand Met was fundamentally a property company. It had squeezed out the heritage of Watney and Truman and had forgotten the traditions and culture that had once served the pubs so well. It thought that their new lessees could instantly become fully rounded

business men, able to trade their way out of recession and above all pay the rent. It was not a happy time. There were other pubcos launched at this time of which the benchmark was Enterprise Inns. This company coupled vigorous expansion with a determination to stick to its plan – all acquisitions became leaseholds or were sold on; there was no compromise and there were no managed houses. But what of brands? In the 90’s the City woke up to the independent managed operators like Wetherspoon, Yates’s, and Regent Inns and these companies floated into the market with wonderful gains for the shareholders matched only by the uncomfortable intrusive demands of the analysts and investment managers. This frenzy was built on the focus on brands – the good idea that becomes a concept, adds a manual and then gets rolled out. Everyone, even Regent now, wants a brand; it’s the passport to success and a route to exit. There are even serial entrepreneurs like Hugh Corbett whose creative thinking has given us Slug & Lettuce, Harvey Floorbangers and the Tup chain. Finally the City got round to respecting Enterprise and some of the other pubcos and then the banks became involved. Actually it was one bank, and a Japanese one at that, which decided that the device of securitisation – cash flow as assets – made the pub industry a great vehicle for investment. And so Nomura bought the old Inntrepreneur estate that had by

continued on page 4

Secretary’s Corner - Page 3 Council at Work - Page 4 Institute of Historic Buildings - Page 5 Innstore Launch - Page 5 Open Hours and Web Sites - Page 5

End of the Small Pub - Page 6 Brewing Industry Awards - Page 6 An Audience with the President - Page 7 Web Site of the Month - Page 7 Breweries of Britain - Page 8

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INSIDE THIS ISSUE

STOCK AUDITOR

Chris Swift - Editor

The Magazine of:

n reading the trade press it becomes obvious that changes affecting the Licensed Trade are happening at an alarming rate. I feel that many changes may not be for the good especially in the long term. The Health and Safety Executive have made great strides in promoting clean air in pubs and restaurants, a voluntary code of practice has been in force for nearly two years and the trade in general has found it to be of benefit. However it now appears that the Government want to go further and are now proposing to ban smoking at the bar altogether. Smokers are not criminals and are doing nothing illegal, but under these proposals will commit an offence by smoking in a variety of places. Where on earth is the freedom of choice that we hear so much about. Can you honestly expect the overworked licensee to enforce yet another law. There are strong rumours that Enterprise Inns are to acquire the 187 strong former Swallow pub estate from Whitbread, who only purchased it last year. Whitbread it seems want to concentrate on its leisure interests such as David Lloyd Health Centres and Swallow Hotels. It is also in talks to sell its brewing interests to the Belgian company, Interbrew. This must be worrying to the former Swallow pub managers, as Enterprise do not have a managed estate. When they took over Discovery Inns many managers were forced into taking on tenancies often with limited success. As you will see in forthcoming issues one area that is causing concern within the trade is the large disparity found between discounts offered to free traders and the tied estate. Often there appears to be no commercial sense in such discounts. For example I have a client in the Yorkshire Dales, predominantly food orientated, he receives a discount on three barrels a week of £ 75 per barrel whereas a tenant in the middle of Leeds, paying an enormous rent receives no discount on twelve barrels a week. It must cost the brewery to deliver to the first example as it is forty miles from the brewery whilst the tenant is less than a mile from the depot. Would any member who can give details of such cases please contact the Secretary. Anyway, back to the matter in hand, this edition of the ‘Stock Auditor’. Our cover article is a contribution by Nick Bish detailing the rise of the pubco. Trevor Knight travels to the Kimberley brewery in Nottingham, whilst Neil Johnson raises his concerns over the impending twenty-four hours opening. Many of you seem to be enjoying the web site of the month and this month’s is a real corker. It is Norman Clements turn to feature in the twenty questions, actually it is long overdue but his original article got lost. Hopefully I will see many of you at the forthcoming AGM. The trip to France on the Friday sounds like a great idea – I am sure that I will be able to persuade someone to contribute a report about the trip.n

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White Horse Press Ltd 65-67 John Wilson Business Park Chestfield Whitstable Kent CT5 3QT

The Institute of Licensed Trade Stock Auditors 7 Comely Bank Place Edinburgh EH4 1DT Tel: 0131 315 2600 Fax: 0131 315 4346 Website: www.iltsa-uk.freeserve.co.uk E-mail address: StockAudit@aol.com PRESIDENT Norman Clements FILSA MHCIMA 105 St. Andrew’s Road Henley on Thames Oxon RG9 1PN Tel: 01491 628660 (Business) Tel: 01491 575451 (Home) Council of Management CHAIRMAN Steve Berry FILSA 15 Deanburn Walk Bo’ness West Lothian EH51 0NB Tel: 0131 225 7611 (Business) Tel: 01506 825227 (Home) Secretary & Treasurer Bruce Thompson FILSA MHCIMA BII 7 Comely Bank Place Edinburgh EH4 1DT Tel: 0131 315 2600 Fax: 0131 315 4346 ADMINISTRATION Gina Pugalis John Tandy FILSA 32 Jasmine Close The Richmonds Gloucester GL4 9FJ Tel: 01452 410349 Michael Murdoch FILSA Badger Gate Pendle View Brock Village Hall Blackburn BB6 8AT Tel: 01254 247496 Fax: 01254 247496 Linda Arthur FILSA 22 Foley Road Claygate Surrey KT10 0ND Tel: 01372 465949 Fax: 01372 465949 George Giles FILSA 16 Mere Drive Fallowfield Pity Me Durham DH1 5DD Tel: 0191 386 7699 Chris Swift FILSA 13 Moor Top Road Norton Tower Halifax HX2 0NP Tel: 01422 363034 Trevor Perrott FILSA Stockwell House Kingfield Road Kingfield Woking GU22 9AB Tel: 01483 770102 Ron Foster FILSA 2 The Close Lydiard Millicent Swindon SN5 9NJ Tel: 01793 771959 Patrick Simmons FILSA 95 Norwich Road Tacolston Norwich NR16 1BP Tel: 01508 489628

All Subscriptions payable in advance. Published 12 times per year post free: Annual subscription £24 ISSN © Institute of Licensed Trade Stock Auditors, 2000

Alec Crighton Rosemary Cottage Green Leas Chestfield Kent Tel: 01227 794714 Fax: 0870 063 2925

Secretary’s corner By BRUCE THOMPSON

In the last issue of Stock Auditor the Web Site of the Month was Leisure Source at http://www.leisuresource.co.uk At the time of writing a list of members and Fellows has not yet been included. Please check and when your details are there check them and let me know if you require any changes. Alec Crighton

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he credibility of this Institute was he has done nothing to stall the biggest 4.2. This information was contained in a substantially enhanced this week when curse to the licensed trade - Bootlegging. local newspaper, the feature also mentioned the Editor of your magazine received a The ending of duty free last summer that a considerable number of kegs had letter prefaced ‘Dear Christ’. I am not sure increased Ferry prices, and crackdowns by been released for delivery inadvertently, the whether it was a typing error or recognition Customs & Excise have left these criminals contents of which were now being served of our work. I would like to think the latter, with a net profit of only eight pence per in pubs around Edinburgh. On the font I but I’m not sure. Certainly not a credit to pint – a few more pence off beer duty still see 4.5 A.B.V. and expecting a this government is their change of heart would make the whole thing just not worth reduction in price, I was mortally surprised when only last month they indicated no the risk. to see on a recent memo sent round the change in the legal alcohol limit for drivers, Spirits have hit the headlines again, duty Brewers pubs, in which tenants were but now purely to suit our European has been frozen but more publicans are advised of this change, that the price was colleagues are reportedly reducing to go up. Where is justice? it to 50 mg; this probably by Country Limit % tested Deaths Also causing much consternation is Christmas of the current year. It is the prospect of councils taking over 80 mg 3 530 predicted that 5,000 out of the U.K. powers of magistrates regarding countries 60,000 pubs will be put Germany licensing. Most Courts are happy to 80 mg 30 160 under threat, for not only will participate, but want to be ready 80 mg N/A 500 drivers be restricted to one drink, Italy before it happens. Licensing but if banned in this country they Committees have to be set up and Finland 50 mg 40 153 will not be able to drive in all fifteen proper funding acquired. It is likely of the European Union countries. France 50 mg 25 380 that those who currently work in the The attached table compares Britain Magistrates Court on licensing Holland 50 mg 5 85 to other countries. There have been matters will simply transfer to a new many delegations campaigning Portugal 50 mg N/A 780 employer. The general consensus against these changes. The Licensed seems to be that it could work if 50 mg N/A N/A trade has fought vehemently to Greece handled properly – one worry is that persuade the government to leave Sweden 20 mg 20 119 whereas magistrates listen to two it as it was. Supporters of the sides of a story, the council might veer change though include such bodies being caught replacing the contents of towards popularity. It cannot be allowed as the Police, A.A. and The Royal Society decent brand bottles with inferior products. to happen too quickly – councils must take for the Prevention of Accidents. It is This is illegal, dishonest and deceitful to their time and get it right or the whole important that we do not do away with the customers. Nearly three billion measures project will be a shambles. traditional British Pub and such a move in of spirit are sold each year in British pubs, A word of advice to customers – make sure my opinion will not greatly improve road representing many millions of pounds and that the price on pre-set tills is the same as safety. The problem is those who drive the public are entitled to the brand they on the price list. Bass Leisure Retail were regularly when three or four times over the see on the label. It is in the interests of the recently fined £3,000 for not doing that. limit, not people who have a couple of nation that these criminals be caught and Trading Standards Officers entered one of glasses of wine with their Sunday lunch the quicker the better. their pubs, ordered three pints of Caffreys, who could now be criminalised. Scottish and Newcastle have for years were charged £7.20 when the published The budget too has not impressed the produced an excellent pint of cask price was only £2.30 per pint. Ten prices, Nation. Last years duty freeze only came conditioned 80/- ale. On ordering one with all at random, were brought up on the till into effect on January 1st so effectively a colleague last week it had to be returned and each was different to that displayed. lasted three months before the Chancellor because it tasted as though it had been A breakdown in communication say Bass, put another penny on the price of beer and watered. The Baillie, my local, would never but an expensive one. four pence on a bottle of wine. The flood lower themselves to such levels, so we both Pushing the turmoils of the trade aside, we of cross channel bootlegging must be immediately realised it was a problem with are now rapidly approaching the A.G.M. stopped and to do that duty should be the beer, only to find out two days later It’s going to be a fabulous event and I for decreased, not increased. Many brewers that Scottish and Newcastle had, as a result one look forward to it. You all have feel that the Chancellor has abandoned their of so called market research, reduced the booking forms so please complete them Industry, but certainly, whatever their view, A.B.V. of that particular beer from 4.5 to and forward to me as soon as possible.n

T continued from page 1 now learned its lessons and re-invented involvement, support and partnership; not really unique but a welcome reappraisal. And so for the crystal ball. Beer remains the staple ingredient of licensed retailing and it distinguishes pubs from the bars bistros and brasseries that have added so much energy and variety to the industry. Beer is lager now; it has evolved from Harp and Skol by exploiting its German connections, has adopted the brash honesty of Australia and now come of age with stylish examples from Belgium, Central Europe and indeed all parts of the globe. Bitter hasn’t really stood a chance. Revivals have been a struggle against the inexorable decline of national brands. And yet there are probably as

many different ales now as there were in the 19th century when every village had its brewery and a local demand for the beer. The future points to the unsustainability of national brands of ale, but their replacement by local niche products that have a particular following in a particular market. Jon Moulton, the iconoclastic but respected investor, says that nearly all the national pub estate will soon be owned by 5 or 6 pubcos with a few regional brewers clinging on and a few focused and efficient managed operations taking up the balance. If this is so then one wonders what has changed over 20 years; the country’s pubs are shared out between a few key owners, operated with lots of tenancies (leases) and some spectacular freetraders. But the customer is king now, not the brewer, and you can’t keep a good

entrepreneur down. The development of brands and brilliant new ideas will continue, whether within the pubcos or using new, converted sites and, above all, the focus is retail. It looks like a circle but it isn’t, it’s a spiral of success and innovation that has transformed our industry. The ALMR was set up in 1992 to service this revitalised industry. The Association now represents 97 pub companies and, between them they own or operate just under 20,000 premises. Their concerns are to avoid the mass of ‘red tape’ from Westminster and Brussels that is strangling business, especially the small and individual operators. They want licensing reform, rates reform and above all to be able to get on with looking after their customers in the way they know best.n

Council at Work Chris Swift

he Council met last weekend at the Black Horse, Clifton for a regular council meeting and to finalise details for the forthcoming A.G.M.. Because of the heavy agenda it was again spread over two days starting on the Friday and concluding on the Saturday. The Chairman, Steve Berry opened the meeting with an attack on the discounting policy operated throughout the brewing industry. This he stated did not produce a ‘level playing field’ with some of the larger pubcos virtually dictating the amount of discount that they had, often at the expense of the tied licensee at the other end of the scale. He felt that the Institute should voice concern over this practice, as ultimately it could cause major problems within the trade. With over thirty items on the agenda ,some causing lively debate, all subjects were discussed at some length. The accounts were considered prior to being sent out to the membership so as to satisfy company regulations. After a couple of lean years it is envisaged that the coming year will be considerably better for the Institute. The Secretary reported that great strides had recently been made and that the Institute continued to make good progress.

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The latest examination results were discussed and analysed, it was felt that the usual high standard of candidate was again maintained. The syllabus and fees were agreed for the next training seminars. Alec Crighton gave a short presentation about the future of the ‘Stock Auditor’. It is important

he said that the magazine becomes more outward looking and appealing to the Licensed Trade in general. It is hoped that the magazine will increase to twelve pages per issue but this is dependent on contributions from both members and ancillary trades.

The Council felt that we could not set a national fee structure because of the regional variations that occur throughout the country.

The role of Regional Representatives was discussed in some detail and further guidance is to be given.

Stocks of the book ‘Taking Stock’ are rapidly running out and we have to think about a replacement. It was felt that a Publisher may be interested in taking an active roll in its production.

Marketing is becoming an important subject at any meeting. The launch of the new web site is imminent, a new brochure of members details is to be produced, the group advertisement in the Licensee has been redesigned and we have taken space on the Leisure Source website. This you may remember was featured in the April issue of ‘Stock Auditor’. Because of this and other marketing strategies the Institute probably has a higher profile than at any other time in its history. Another first is the in-house training course developed for a firm of stocktakers. It was felt that other companies might well avail themselves of this service in the future. An opportunity to broaden member’s services by an association with Innstore was discussed. It was felt that this should not only develop our businesses, but would provide income for our members. A new list of members is to be published so it is important that any changes and errors are notified to the secretary as soon as possible. With the growth of the Internet it will be beneficial to include E-mail addresses.

It is important that we inform Inland Revenue and Customs and Excise Officers of our members’ expertise in the Licensed Trade.

There were nine successful applications for fellowship, which are always a pleasure to grant. The above will I hope give you some idea of what your council talk about at their regular meetings.n

UNIQUE SIBA SUPPLY DEAL! Details are emerging of a deal that has been reached between Unique Pub Company and SIBA (Society of Independent Brewers). For a three month trial, licensees in the North of England will be able to order from a range of 24 cask conditioned ales on a weekly basis. This is a step in the right direction, as large pub companies have always maintained that they have not the facilities to supply small breweries ales in a national supply chain. The beers will be distributed through Supplyline, which is a subsidiary of Unique. Hopefully the tests will prove successful and all 2700 pubs will have the benefit of a genuine guest beer. It may be a coincidence but there are strong rumours that the Office of Fair Trading is preparing to look again at the supply of beer in this country. As the larger pub companies now have as many houses as the large breweries in 1989, it will be interesting to see if all pub companies will have to adopt a similar policy.

INSTITUTE OF HISTORIC BUILDING CONSERVATION Norman Clements

he Annual Conference of the I.H.B.C. was held on the 8th April at Reading University and the theme or agenda was called a ‘Bitter Harvest’. This was all about the future of the English pub with emphasis on rural life and the village inn. There were no less than ten speakers and this seminar lasted all day. Over sixty delegates attended – the majority having a leaning towards District Councils, Preservation Trusts, C.A.M.R.A. and English Heritage. Much was made of the need to protect listed buildings and to resist the temptation to allow breweries to alter the buildings to accommodate more customers. Most of the speakers agreed that village pubs were under threat and that food will eventually overtake the liquor takings in many instances. Whether they will ever be a post office or a bank remains to be seen, but it was felt that people who live in villages seldom work

nearby and certainly are not around except in the evenings and weekends (‘The Archers’ may be an exception). Brakspears of Henley were the sponsors for the conference and their speaker gave some interesting facts and figures. For instance, in 1960 lager sales were only 1% of the total barrelage brewed in the U.K. – whereas in 1999 lager was over 63%. Real ale sales have declined steadily and are continuing to do so. As for the import of ‘beers’ from the Continent, whether legal or otherwise, these have made quite an impact on our own sales – and not only in the South East. It was reported that these represent some 15% of our lost barrelage and the Government is repeatedly asked to assist by reducing duty. Breaking away from the village pub and its architecture, the subject of theme pubs was discussed and Reading was given as a fine

example. In one main street alone, there are eight or nine of such hostelries, and, of course, these are brand new licences. Some buildings were originally banks, shops or even post offices, and it was argued that these buildings might still be empty if they were not brand or theme pubs, thus helping the town council with its rates income. Many in the audience agreed that these have their place in this modern age although they didn’t like the atmosphere and would not make a habit of visiting them! In conclusion, I would say that both sides of the equation were debated very well and that we must accept changes, but not at the expense of the customer or of our fine character buildings. Some felt that we often tell the customer what he should eat or drink rather than listening to the public and asking what they would like. A very interesting day!n

INNSTORE LAUNCHED Bruce Thompson

hat a pity that more people did not come to see Innstore Launched. The nine of us that did had a most interesting day, and a lunch that almost sent us to sleep during the afternoon. John Conroy was in fine form and told us all about his company and what services he offers. With 5,000 clients under his belt he offers almost everything except what we do. From group buying, accountancy, buying and selling of licensed premises, insurance, etc., his portfolio extends to preparation of Wills and designing of Web sites. Our clients could benefit so much by utilising these services and also see a direct improvement in their bottom line that it makes it well worth while the effort of selling it to them.

March magazine so I don’t want to repeat that, but what I am going to say is that this is another opportunity for our qualified members to become involved in something different which could substantially increase their annual earnings. Stocktaking will always be the backbone of what we do, but with the large

amount of licensees that we meet every year, we could not be better placed to sell on products, which are credible and significantly cost saving.

Sunday 16th

April saw the launch and John hopes to run another pilot program probably very soon. I am not sure of the venue yet, but these sessions do give our members the opportunity, without any outlay, of finding out all about Innstore and deciding for ourselves whether we wish to participate or not. The day started at 9.30 a.m. and finished about 5.00 p.m. – we all learnt a lot and came away the better for that knowledge all eager to participate as quickly as possible. For further information please contact John Conroy on 01405-720114 or E-mail jconroy@bigpicturesoft.com. or call the secretaries office.n

A clear insight of Innstore was given in the

Opening Hours and Web Sites Neil Johnson

he licensed trade is in the middle of

On top of all this the Internet is set to be

The breweries, I am informed, hope that by this introduction, it would help prove their case that the sites are valuable community assets and would therefore be liable for rate relief of up to 50%. Talks have been held between the Federation of Licensed Victuallers, of Bradford Road, Brighouse and the Party Parliamentary Beer Group. At one meeting, over 70 M.P’s attended and signed an early day motion (whatever that is!) for such rate reform. I hope this is sorted before twentyfour hour licensing is introduced, as Question Time could become more comical than it is now and all night sitting, all night parties! I haven’t taken to the Internet myself. I have my own Web page etc. but have no interest in surfing. If I am informed of an address that

seems of interest I will visit and have up to now, not been disappointed. The Magazine Web Site of the Month is an excellent idea and is of excellent quality and would recommend a trip to the suggestions. Shepherd Neame’s web site www.shepherdneame.co.uk (great minds think alike - see the Web Site of the Month ed.) is well worth going to as is Theakstons www.theakstons.co.uk I rather cheekily sent an Email to Shepherd Neame congratulating them on their 1999 vintage Christmas Ale. It is 500ml, 6.5% Abv bottled ale flavoured with almonds. Fantastic! I am still awaiting my free case of something from them. With regards to those drunken yokels previously mentioned, God only knows what Web addresses they will be going to!n

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one of the biggest upheavals ever encountered with the impending introduction of twenty-four hour permitted opening. With a few of the sites I visit, I can imagine turning up at 8.30 am to be greeted by obnoxious, drunken morons giving their rendition of ‘I would do anything for love’ by Meatloaf. They would then ask for the forty-millionth time if I can get the winning lottery numbers off the laptop. I will laugh and say that I have never been asked that before and reassure them that if I do, they will be the first to be told. The licensee, who has not seen his bed for three days and has forgotten what it is like to sit down for a meal with his or her family, is now asleep, slumped over the bar servery, pinning down the damn ullage book and delivery notes!

introduced into rural public houses if grants can be obtained from the Government.

The End of the Small Pub. I

t could be said that the decline of the small pub started during the Second World War. Breweries brewed very small amounts of beer and spirits were almost nonExistent, so profits fell dramatically resulting in a lack of maintenance to both the brewery and the public houses that they served. After peace broke out the lack of maintenance and also the lack of experienced licensees resulted in beer quality dropping. The smaller breweries were taken over in large numbers – rather like the many takeovers in the nineties. Small breweries disappeared in their droves, in Halifax, for instance there were four respected breweries in the town, which was by no means unusual. All these breweries would have small pubs giving the drinker a choice of beers in any one area. Unfortunately when the smaller breweries were taken over, in many areas, brewing ceased and capacity was transferred to even larger production plants. Production of beer increased but the quality gave cause for concern. The breweries answer was the ubiquitous keg beer with barrels such as Watney Red Label, Flowers Keg and Double Diamond to name but a few. The rest is as they say, history in that CAMRA was founded to save us from keg beers and save cask conditioned beers or ‘real ales’ as it is colloquially known. CAMRA, it could be argued was one of the most successful pressure groups of all time. Whilst the quality of beer was being improved, the small pubs were still struggling with poor maintenance. This came at a time when new licenses were

being granted which opened up competition. The brewery’s reaction was to sell the small pubs off which were too expensive to maintain for the barrelage they generated. They thought that they could make up the shortfall by selling to free houses. This in turn had a knock on effect and made the matter worse. In the seventies regional breweries such as Mars ton’s bought up as many free houses as they could to enlarge their estates. This unfortunately coincided with a further slump in beer sales and by the end of the eighties property prices were collapsing. This was where the Government stepped in and brought out the iniquitous Beer Orders, which were designed primarily to increase customer choice. The large conglomerates that controlled the brewers at this moment brought in property experts and legal experts and changed the composition of the brewery tied trade overnight. Rents doubled and even trebled, the responsibility for pub maintenance fell on to the new leasee and overall a lot of experienced licensees left the trade. The breweries traditionally had always dealt with their tenants benevolently but the new companies were in the main indifferent to the plight of the licensee, they were only interested in the large successful houses. Many of the smaller pubs were unviable but many people were encouraged into the trade by the prospect of making a capital gain by selling on a lease in a few years time. Unfortunately many of them would go bankrupt long before the businesses could be sold. Another more fundamental flaw was that to realise a capital profit, you must first be able to generate an operating

profit – otherwise the business is worthless. Remember the stated purpose of the beer orders was to increase choice to the customer and bring down prices. It can perhaps be nightly argued that they have had the exact opposite effect. An example of where the orders went wrong is the ‘guest beer’ clause. What the clause said was that breweries with more than 2000 houses had to give their tenants the right to purchase one cask conditioned beer from a supplier of their choice. The breweries circumvented this measure in two ways, they either decreased their estate to under 2000 or themselves supplied a range of guest beers. This in effect was the start of the now ever present pub company. They bought pubs either singly or in packages. The 2000 rule only applies to breweries and the pub companies could grow as big as they wanted. Because the pub companies are now not dependent on beer sales they simply shut the smaller pubs that are unviable. Unfortunately this usually happens after many couples have lost their life savings. It is difficult to see how the situation will improve. The smaller breweries under the name of SIBA (Society of Independent Breweries) are trying in some way to improve the situation. Unfortunately they do not have the muscle of the big breweries and so they are unable to offer the discounts to the smaller pubs that would be necessary to overturn the long periods of neglect that they have suffered. At the moment it is estimated that six pubs per week are permanently closing. This is part of our heritage and I do feel that each pub that closes is a further nail in the coffin.n

BREWING INDUSTRY INTERNATIONAL AWARDS 2000

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imothy Taylor, the Keighley based brewers, have won yet another award for their famous flagship brew ‘Landlord’. Brewed to 4.3% Abv, Landlord achieved Gold Medal in its category and was judged overall best beer of the competition. Taylor also received a Silver Medal for ‘Golden Best’. It is the first time that a beer has held the Champion Cask Conditioned Ale Trophy and the Champion Beer of Britain at the same time. Since brewing commenced in 1952 Landlord has now won many trophies. Judged by an independent panel of judges at Burton on Trent between the 9 th and 11 th February, the results were announced on

11th April at a ceremony in London’s Guildhall. The awards have taken place every two years and have been run since 1886. British brewers collected 29 of the 60 awards but the numbers of Gold Awards awarded to British brewers fell and more medals were widely distributed around the world. Hungry, Italy and Japan entered the ‘medal table’ for the first time, whereas Scandinavia, the USA and South Africa maintained their position in certain categories. Young’s Chocolate Stout carried off the Gold Medal in the Speciality Beers

Competition. Youngs had further success with their Young’s Bitter in the Keg Ales Trophy. Brewed to 3.7% Abv, this saw off strong competition from McMullen Cream Ale. Their Oatmeal Stout picked up silver and their new brew; ‘Triple A’ also received a Silver. The judging panel numbering 33 which is composed entirely of Brewers representing 13 countries, blind taste all the brews submitted. It is refreshing to note that even micro breweries can be successful at the event. The tiny Tipsy Toad and Star Brewery from St.Peter’s, Jersey, producing just 16 barrels a week walked off with a Bronze Award in its class.n

WEB SIGHT OF THE MONTH

http://www.shepherd-neame.co.uk Visit the Speherd Neame site - the oldest brewery in Britain. A good web site with lots of information and especially for those going to the AGM in Folkestone you will find many local Kent links giving you information about the area.

CLASSIFIED ADS. Cost 50p per word - maximum 100 words. Members free of charge Call 01227 794714 to place an advertisement Your own web site for just £70 plus an exciting business opportunity. Visit www.skynary.com/fred_at_pennine or telephone Frederick Sleap FBII, MILSA at Pennine Stocktaking Services on 01706 813773

Have your Classified ad. Here

1.Your first job was? Junior Clerk – Hotel Company 2. How much was in your first pay packet? £1 per week 3. Your best subject at school? Mental Arithmetic 4. If you weren’t a stock auditor what would you like to do? Be an Estate Agent 5. What is your favourite time of day, and why? After dinner, full and relaxed 6. What was your worst mistake (be honest)…..? Believing a manager who said he had lost a bank slip for £500 7. Name one person you would most like to have dinner with and why? Alistair Cooke – to eat and just listen 8. Your favourite place is? Devon 9. What is your biggest fear? Winning the lottery 10. Who in the Licensed Trade do you admire most? The teetotal publican 11. If you have to admit to having a fault what would it be? Untidiness 12. What is your favourite book? Most of Agatha Christie’s 13. Your favourite film? Mrs Brown 14. What is your top time saving tip? Planning a journey in advance 15. What really makes you angry? The other driver not giving way when I’m going up hill 16. What, or who, could you not live without? Dorothy 17. What do you spend most money on? See No.16 18. What’s the best device or gadget that you have ever bought? Electric garage doors 19. What would be an ideal day away from the office? A boat trip round the Isle of Wight 20. What is the most over-rated virtue? Being tidy 21. What advice would you give anyone starting out as a stock auditor today? Think twice – then be prepared for hard work 22. As Prime Minister what would be your first task? Double the OAP Pension 23. What attributes do you think make a good stock auditor? Aptitude for figures, patience and the ability to get on with publicans 24. What is the highest compliment you have been paid? He was a good chairman (true) 25. Finally, what would you like your epitaph to be? He tried

A warm welcome is extended to the following new Associate members of the Institute. Frank Abbott Gloucester David Tindle Washington Eric Dick Surrey John Ambler Dorset Jo Kavanagh Ireland Oliver Foss Derby Mark Cooper- Haimes Devon Sarah Reed Devon David Hall Stockton On Tees Ian Telford Inverness William Woods Northampton Daniel Gill Essex Brian Provost Runcorn, Cheshire James Connelly Manchester Crawford Mitchell Stirling Guy Porteus Peterborough John Quirk Penzance Mathew Goulden London Heather Twidale Ipswich Julia Hamill Jersey Julian Barker Bournemouth David Taylor Warwickshire

Congratulations to the following who have recently been elevated to Fellows. Susan Crossman Wokingham Neil Johnson Brighouse,W Yorks Paul Rought Colchester Douglas Stewart Glasgow Robert Sutton Barwell, Leics Jim Underwood Isleworth, Middlesex Gary Warner Chelmsford, Essex Russell Watson Dalgety Bay , Fife And to the following who passed the examinations in March. Ian Cole Northants Eric Dick Sutton, Surrey David Essex Pershore, Worcs Mathew Goulden Clapham,London David Hall Stockton on Tees Chris Newsome Bury St.Edmunds Geraint Phillips Rhonda Valley Brian Provost Runcorn, Cheshire David Rathbone Sheffield Roger Scoley Truro, Cornwall Stephen Smith Northants. John Usher Sheffield

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For marketing assistance call AC Marketing Tel: 01227 794714 Fax: 0870 063 2925

An Audience with Norman Clements President of ILTSA

THE BREWERIES OF BRITAIN A Series by Trevor Knight Part Fifteen

Hardys and Hansons – Nottingham

ottingham is an ancient city with a turbulent history of revolution and revolt – a city of lace and legend – the home of the bicycle, the ready rolled cigarette and Robin Hood. Nottingham Castle – a fortress for 900 years For centuries, Nottingham’s life has centred around the castle, built by William the Conqueror in 1068. It was destroyed twice during the reign of Stephen and rebuilt. It came under siege in the Civil War and was pulled down in 1651 by the Parliamentarians. The 1st Duke of Newcastle bought the site and built the mansion house that stands today, but the castle’s stormy days were still not over. The defeat of the Reform Bill in 1831 started riots in the town. The Nottingham citizens were strongly in favour of the reform of Parliament, but the Duke opposed it, so the rioters vented their fury on the castle and burnt it down. The castle stood empty until 1875 when the Corporation restored it. The castle is now the city’s museum and art gallery. Revolution and Revolt Nottingham was deeply involved in the Industrial Revolution. Richard Arkwright set up his first spinning mill there in 1769, using his spinning frame, and by 1790 he was using a steam engine to power his mill. Other industries followed, including lacemaking, hosiery, light engineering, tobacco and bicycles. Since the 17th century, a thriving cottage industry of hosiery and knitwear had existed, using the stocking frame invented by William Lee in 1589. But it could not compete with the new sophisticated inventions and the cottages were barely able to scrape a living. In 1811 they banded together and destroyed many of the new machines that had caused their misery. The gangs became known as Luddites, after their leader Ned Ludd. Nottingham’s lace and knitting industries grew in the 19 th century and Nottingham lace is still worldrenowned. Nottingham’s versatile industries In 1877, John Player opened a small plant to make ready rolled cigarettes; half a century later and the firm had grown into a national manufacturer with an international name. A doctor named Frank Bowden set up a bicycle factory in Raleigh Street in 1887. Twenty years later the Raleigh Bicycle Company was producing 50,000 bicycles a year. Also at the end of the 19th century, the Boots family opened up a chemist shop in the city. A century later,

‘Boots the Chemist’ had the largest chain of chemists in the high street. Robin Hood – Hero of Sherwood One of the world’s most enduring folk tales has it’s home in Nottinghamshire’s Sherwood Forest. Robin Hood, the legendary 12th century folklore hero carried out his activities in the forest which covered an area of 200 square miles to the north of Nottingham. The story of Robin Hood goes back to the dark ages of English history and the ancient beliefs of the Green Man, a symbol of regeneration and the cycle of nature. By the time of the Norman Conquest, the myth had become man and entered into popular culture through ballad and rhyme. Kimberley Brewery – 1832 The town of Kimberley, South Africa, became famous as the centre of the world’s diamond mining industry in the 19th century, but in Nottinghamshire it was simply a village of 2,000 inhabitants on the outskirts of Nottingham. Kimberley did not have diamonds but it did have two local sources of pure fresh water filtered through rock containing the right balance of mineral salts essential for brewing good beer. The England of 1830/31 had seen the labourers’ revolt that brought about parliamentary reform and more representative government. Stephenson’s steam engine had made its first triumphant journey to usher in the railway age, so it was in this climate of optimism in 1832 that Kimberley’s first commercial brewery originated. The Ambitious Hardy Brothers Samuel Robinson, a local landowner and craftsman brewer, had converted an old bake house in the village into a small brewery with cellars hewn from solid rock. Robinson’s small brewery prospered until it attracted the attention of two brothers, William and Thomas Hardy who for seven years had traded successfully as wholesale beer merchants in Nottingham and Derby. The Hardy brothers were ambitious young men who had learnt all they could of the brewer’s art. The logical next step was to start brewing for themselves so, in 1857, they bought the Robinson brewing business. The Hardys were determined to increase their output and accumulate enough capital to build a bigger brewery. They worked night and day, six days a week. During those early years William conducted the brewing while Thomas travelled the country selling the beer and handling the finances of the business. Their ambition was soon realised when, in 1861, Joseph Godber, who had owned the Robinson brewery

buildings, sold them an acre of land in the village. The new brewery, solidly built in red brick was soon completed. So, in little more than ten years, William and Thomas Hardy had laid the foundations of a prosperous and lasting enterprise entirely through their own efforts. The Hanson’s difficult years Success had followed the Hardy brothers efforts, but in contrast, in 1861, fortune dealt the rival Kimberley brewery what could have been a fatal blow. Stephen Hanson was a farm manager by trade but before the Hardys had bought Robinson’s small brewery in Kimberley, he had observed that with its fine water, two maltsters, several hundred thirsty miners, many inns and brew houses, the area could support a second brewery. So, in 1846, he bought the Stag Inn, Kimberley and converted it to a brewery. For the Victorians, business - especially brewing, was very much a family affair but it was not until 1843, seventeen years after Stephen and Mary Hanson has married that the future heir to the business was born. Sadly, when Robert Hanson was only 18, his father died, leaving him and his mother to carry on the family business. William and Thomas Hardy had just opened their new brewery, so the untimely death of Stephen Hanson had put the family business at risk. But young Robert and his mother persevered, though for some years with little success. In 1869, Robert Hanson became the sole proprietor of the business and with a successful and fruitful marriage he went from strength to strength. The families merge The Hardys and the Hansons were in direct competition however, but both businesses thrived until in 1930, under increasing pressure from larger brewing companies and a lack of male successors to the Hardy’s Brewery, the two companies merged. Today, the family influence continues with chairman and managing director, Richard Hanson being the great great grandson of the original founder of the Hanson’s Brewery. Hardys and Hansons own around 250 pubs, mostly in Nottinghamshire and Derbyshire, the remainder being in South Yorkshire and the East Midlands. (Read about Hardys and Hansons oldest pub in the country in the next edition of The Stock Auditor.) A Classic Reputation The reputation of Hardys and Hansons is such that Kimberley Brewery also brews ales for Whitbread and Bass.n

Included in the Hardy & Hanson range of award winning beers are: (N.B. Tasting notes courtesy of Hardys and Hansons.)

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Kimberley Best Mild

Kimberley Best Bitter

ABV 3.1%

ABV 3.9%

Kimberley Classic ABV 4.8%

A rich ruby traditional Midlands dark mild with nutty and roast malt flavours coming through in the aftertaste.

Kimberley’s best selling bear, a beautifully balanced golden brew with good bitterness. This distinctive beer has a full and very satisfying finish.

A premium bitter definitely a classic in this category. Delightful hop aroma and packed full of flavour, with the dry hop lasting well into the aftertaste. Light in colour for a beer of this strength.

Number 15

July 2000

Interbrew Acquires Bass

good record in that field having shut down , over the last few years, the Herriot brewery in Edinburgh, the Hope and Cannon breweries in Sheffield and sold the Highgate Brewery to a management team and the Cardiff site to SA Brain. Whitbread too, closed many breweries over recent years, the Exchange Brewery in Sheffield in 1993, Flowers in Cheltenham in 1998 and sold the Castle Eden Brewery recently to a consortium. Interbrew brands in Britain

include:Draught Lagers:- Stella Artois, Carling, Grolsch, Tennents Leading National Ales:Boddingtons, Caffreys, Worthingtons Cask Ales:- Wadworth 6X, Draught Bass, Trophy, Flowers Fuggles Imperial Bottled Beers:- Dos Equis, Oranjeboom, Sol Stouts:- Murphys, Mackeson Belgian Beers:- including Hoegaarden and Leffe

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takeovers as it has no stock market listing. The purchase of Bass and Whitbread push it up to the second largest brewer in the world after Anheuser -Busch. Nowadays when breweries are sold it is the brands that are important not so much Interbrew Acquire Bass the fabric of the plants. Imagine the strength of ass have succumbed to the brands that Interbrew has just Interbrew’s advances for an bought, Boddingtons, Trophy, estimated 2.3 billion pounds. As Carling, Worthington. Stones, mentioned in earlier issues of Grolsch, Flowers IPA to name Stock Auditor this opens up all but a few. Add this to their sorts of questions about already large portfolio which competition and the survival of includes the Belgian market many brands known to us for leader, Jupiler, their collection of monastery beers and their recent decades. The Society of Independent purchase of the Canadian brewer Brewers is very concerned about Labatts and you see their world this takeover as they see strength. Because of this overlap Interbrew concentrating on large of brands it is prophesised that lager brands perhaps to the some of the brands will be sold detriment of cask-conditioned on in the coming months. For ales. Bass and Whitbread blame example the Italian brewery high UK duty rates for their exit Moretti was sold to Heineken from brewing in this country, after Moretti was bought along which gave companies such as with the Canadian Labatt’s Interbrew an unfair advantage in brewery. Interbrew often acts with considerable foresight as the market place. witnessed by their purchase of These acquisitions immediately the Chinese Blue Sword leapfrog Interbrew over Scottish Brewery. This is situated in the Courage as the UK’s largest Sichuan province with a brewer with a 40 plus per cent population of over 100 million – of the market. Interbrew already the population of Belgium, has the biggest selling premium Czech Republic, Denmark, lager in this country with its Ireland and Germany combined Stella Artois brand. This has (five of the worlds top ten beer doubled its sales in less than drinking nations). Market three years to more than 1.6 analysts are already tipping the million pints a day, which rakes Chinese market as the beer giant in an annual income of around of the 21st century. With their £850 million. acquisition of Bass, Interbrew Who exactly are Interbrew ? now have nine breweries in the They are a giant Belgian UK and three more in the Czech company, which is still privately republic. This may mean job owned, this has protected it from losses but Bass hardly have a

The Magazine of the Institute of Licensed Trade Stock Auditors

ISSN 1471-0471

The Magazine of the Institute of Licensed Trade Stock Auditors

Editor’s View

Chris Swift

ell, it has been a peculiar month. I suppose the highlight has to be the multi changeover that came my way at the beginning of the month. I was asked to quote for a valuation of stock, both wet and dry, glassware and cash reconciliation’s for up to fifty eight managed houses. The snag was that they had to be completed within a three-day window. This was where the Institute came in to its own and I managed to organise nine other members to help me fulfil that task. Hopefully this may be the first of many such opportunities. I would however like to thank those members for the professionalism shown and the enthusiasm that they exhibited. At the other end of the scale I had an experience that perhaps highlights what is going wrong with the trade today. A long-standing client of mine had been ‘holding’ a pub for a large pub company for some time. He had given notice well before Christmas but the affair had drawn out until the end of May. As he was on a well-earned holiday I agreed to look after his interests on the changeover. Another member of the Institute conducted the inventory check but by eleven there was no sign of the incoming tenant. When the area manager arrived he phoned the lady concerned and she arrived soon after. Unfortunately she had no money with her, either for the fixtures and fittings or more importantly for my client’s stock and glassware. The Pub Company then agreed to buy the stock, which I had to agree, as I knew my client wanted out. The incoming client then asked me to continue for her so I duly sent out my welcome pack containing the answers to many queries. During the next few weeks I had some phone calls asking advice about everything but stocktaking, but I tried to help as best I could. When my visit was due we tried the telephone number many times and I eventually called whilst in the area. All the lights were on, two of the windows were smashed and boarded up but no one answered the door. By this time there was quite a queue of people with business in the pub. I quickly found out that she had in fact ‘done a runner’ without it seems paying a penny to move in. On the changeover the Area Manager had commented that six months previously this particular lady would not even have warranted an interview – Draw your own conclusions to this sorry tale. Anyway back to the matter in hand, the ‘Stock Auditor’, many of you have welcomed the change to twelve pages. Well it has been a struggle to find suitable copy so please do send me your articles, please don’t put them to the bottom of the in-tray and forget about them. As usual my thanks have to go to Trevor Knight and Jim Bowman-Smith for the consistent support that they give over the issues, I could do with a few more like them. Simon Heywood drew my attention to an interesting article that appeared in the Observer but unfortunately we have not received permission, as yet, to reproduce it. We have included some guidelines about the new law pertaining to part time workers that was introduced on 1st July – if not applicable to your businesses many of your client’s may seek advice. More information, should you need it, can be found on the government website at www.dti.gov.uk/er/ptime.htm. One of our long standing members, David Rutter from Hove sent me a few articles from his scrapbook which I hope to use over the coming months, Poppleston Allen have again contributed an interesting article from a legal viewpoint, whilst Alec Crighton raises some interesting points on beer bottle labelling, an area, I am sure, we all take for granted. The Licensed trade Press has been full of the takeovers and mergers that are happening with alarming regularity, the full implications of some of these will I am sure become apparent in the coming months. I will however try and keep you informed on how they will affect us and our clients. I hope you enjoy this, the July edition, of the Stock Auditor. Because I will be on a well-earned family holiday in the coming weeks the August issue may be slightly delayed. However please do keep your articles coming in.

The Magazine of: The Institute of Licensed Trade Stock Auditors 7 Comely Bank Place Edinburgh EH4 1DT Tel: 0131 315 2600 Fax: 0131 315 4346 Website: www.iltsa-uk.freeserve.co.uk E-mail address: StockAudit@aol.com PRESIDENT Norman Clements FILSA MHCIMA 105 St. Andrew’s Road Henley on Thames Oxon RG9 1PN Tel: 01491 628660 (Business) Tel: 01491 575451 (Home) Council of Management CHAIRMAN Steve Berry FILSA 15 Deanburn Walk Bo’ness West Lothian EH51 0NB Tel: 0131 225 7611 (Business) Tel: 01506 825227 (Home) Secretary & Treasurer Bruce Thompson FILSA MHCIMA BII 7 Comely Bank Place Edinburgh EH4 1DT Tel: 0131 315 2600 Fax: 0131 315 4346 ADMINISTRATION Gina Pugalis

John Tandy FILSA 32 Jasmine Close The Richmonds Gloucester GL4 9FJ Tel: 01452 410349 Linda Arthur FILSA 22 Foley Road Claygate Surrey KT10 0ND Tel: 01372 465949 Fax: 01372 465949 George Giles FILSA 16 Mere Drive Fallowfield Pity Me Durham DH1 5DD Tel: 0191 386 7699 Chris Swift FILSA 13 Moor Top Road Norton Tower Halifax HX2 0NP Tel: 01422 363034 Trevor Perrott FILSA Stockwell House Kingfield Road Kingfield Woking GU22 9AB Tel: 01483 770102 Ron Foster FILSA 2 The Close Lydiard Millicent Swindon SN5 9NJ Tel: 01793 771959 Patrick Simmons FILSA 95 Norwich Road Tacolston Norwich NR16 1BP Tel: 01508 489628 Alec Crighton Rosemary Cottage Green Leas Chestfield Kent CT5 3JY Tel: 01227 794714 Fax: 0870 063 2925

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All Subscriptions payable in advance. Published 12 times per year post free: Annual subscription £24 ISSN 1471-0471 © Institute of Licensed Trade Stock Auditors, 2000

This magazine is published by the Institute of Licensed Trade Stock Auditors. Whilst welcoming any contributions, the editor reserves the right to alter or amend them if necessary. Any opinions expressed are not necessarily those of the Council and are accepted only on that understanding. No part of this magazine may b e reproduced or transmitted without written permission of the publishers.

by Bruce Thompson

omputers and programs are the bain of my life. Necessary yes, but not the easiest for people approaching retirement. Today’s youngsters have a huge advantage in that they are brought up surrounded by them – not only at school, but in the home, on television, in every newspaper or magazine one sees, and even in the car. The Internet is a focal point of our lives and messages keep pouring in through the EMail. What is the world coming to? We are dominated by these machines and thousands of programs, each doing different jobs. Our bank accounts are controlled by them, our shopping, our medical records, P.A.Y.E., subscriptions to the Institute and just about everything else you can think about all are ‘according to the computer’. The irony is that when they ‘go down’ everything stops because very few of today’s workforce can do the job manually. When I first started in stocktaking in the early 70s all we had was a ready reckoner – even calculators were a thing of the future. I well remember sitting in bed at night working out stocks, ready reckoner in one hand, pencil in the other and board on my knee. The brain had to work and whilst we might not have given as much information as we do today, clients still got a surplus deficit result and a G.P. Everything was hand written and by using some complicated Kalamazoo system we were able to transfer closing stocks to opening. The whole process took hours and any mistakes meant recalculating the whole stock. The day we decided to go computerised was traumatic, expensive and bewildering. No programs were, of course available, so we had to have one purpose built. Olivetti themselves, because they had supplied the hardware, took on this arduous task. For each job we had a series of cards each with a metallic disc down the side. These held all the information, each card containing data on twelve items only and each taking over five minutes to process. If the operator made one simple mistake then he or she had to start again from the beginning. If, on checking, a closing stock was out by one tenth, then the whole darn thing had to be done again. You can imagine the comments if a client decided to change the revenue after everything had been run off – you were just as likely to

make a further error on re-entering all the data only to mean, yes, you had to start all over again. I well remember us employing all day, every Sunday, Bobby Hain just to run off sheets for the following week. We persevered with this archaic system for some time – then it was modern and fantastic, until such time as we could afford a new one and had more idea of what we wanted. With Steve Berry, my then partner, we went back to Olivetti, told them what we were looking for only to be referred to Mandata in Newcastle who would have more time to work on such a ‘complicated’ program. After numerous meetings, much discussion and considerable co-operation, Mandata came up with a basic program, which was to be the front runner to today’s sophisticated one. No longer had we to endure the metal strip and repetitive loading procedures – we had a real live disc and mistakes could be rectified without reloading the entire job. Clients were getting more for their money and we had less work to do. We were ecstatic and immediately increased our workload. More staff were employed and our area extended from John O Groats in the North to Birmingham in the South – North Wales warranted a monthly visit as did York, Leeds and Chester. I always remember at this time a blip in the system, which meant that, every now and again, a job would crash with us losing all the information. This was a positive anti and Mandata seemed unable to find the fault, until at last they discovered a missing tail – such a small thing caused us so much grief, but at least for all our trouble they did give us a free conversion kit. Throughout the eighties and nineties, computer programs were developing fast and furiously. Programs were coming from nowhere and different languages were immerging almost by the day. DOS was one of the most frequently used and of course this being amongst the best, was what we went for. A substantial upgrade came in the early 90s and with it more upheaval as we adjusted to innovative ideas. Nearly everything was available in this fantastic program; we could do food stocks, produce certificates of valuation, graphs and statistics, detail barrelage and offer all types of information. At that time Mandata had

Merchandise Goods Received Pads - £7.00 Bar Requisition Books - £5.50 Dipsticks - £18.50 “Taking Stock” books - £18.00 Hydrometers - £70.50

All prices include VAT (where applicable) and postage 10% discount to Associates and Members 15% discount to Fellows Discount only applies to merchandise

More recently on the scene is Stockmaster. This is Windows based and as such has much more versatility that the other two programs, but it is more expensive. It has been developed over the last year, very much in conjunction with the Institute and contains many new features. It is a complex program which is extremely comprehensive and which will cover the needs of all professional stock auditors. Returning to my opening paragraph, I still hate computers, but reluctantly have to admit that they have their uses. The three programs that we recommend are all excellent and each stocktaker must decide which best suits his or her requirements and what he wants out of it. There is no point in paying more for superfluous information, but then looking to the future is it not a good idea to invest in what could be? Windows is the future, but then Paul is to convert his – Stockmaster is ultra modern and Mandata though excellent is retaining DOS. My advice if purchasing software is to check out all three thoroughly and see what suits you best. Forget what we had to endure in the early days – the metallic strip is a thing of the past and the ready reckoner can go into the bin. For further advice on programs contact: Mandata – Linda Renforth0191 262 8302 PS Stock Auditor – Paul Steele0151 283 4964 Stockmaster – Mike Ridley0125 266 5474

FELLOWSHIP All members can apply, after seven years of having qualified, for elevation to Fellowship. In return we give you: 15% off all merchandise purchased through the Institute; Members brochure - asterisk beside your name; Highlighted entry in Licensee advertisement; Certificate of Fellowship; Status within the profession; Use of the designation FILSA A quick note or ‘phone call to the Secretary starts the ball rolling, so if you qualify do it today.

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The following are available through the Institute

produced a remarkable program – it was ahead of its time, and though not inexpensive, was able to satisfy the demands of most of us. It sold well and regular updates came from the writers, Mandata really had a monopoly at this time and though several programs were available for single bar outlets no one else was producing one suitable for multi bar units. One of our members, Paul Steele, realised this and used his extreme knowledge of programming to develop, between stocktakes, a program to compete with Mandata. He did a remarkable job and his PS Stock Auditor is now very much a leader in the field. It is written in D.O.S., but Paul assures me that it will soon be converted to the modern version of Windows. It is undoubtedly amongst the top three programs and one which the Institute is pleased to recommend to its members. It is a credit to Paul.

The Magazine of the Institute of Licensed Trade Stock Auditors

SECRETARY’S CORNER

The Magazine of the Institute of Licensed Trade Stock Auditors

NEWS ROUND UP W

ell, it has finally happened. As reported in earlier issues the Belgian Brewer, Interbrew, has finally gained control of Whitbread breweries. One major immediate effect is that Whitbread tenants and lessees will have no automatic right to stock a guest beer. This is because the beer orders of 1989 only apply to Brewery Companies. As Whitbread no longer operates as a brewery they will be able to negotiate with other breweries to obtain ‘substantial discounts’. This will probably lead to the exclusion of smaller breweries that cannot afford to offer the discounts that are currently available from the large companies. It will be interesting to see what action, if any, that Interbrew takes with regard to the discounts they will be expected to offer. A spokesman for the Independent Family Brewers of Britain ( IFBB ) said ‘ This is the consequence of successive governments, interference in the brewing industry. The Beer Orders, which came into force ten years ago and sought to control the distribution of brands in the UK, has ultimately led to over fifty per cent of the U.K.’s beer production being placed into foreign hands. If the European commission clears the deal, the future of Bass’ real ale brands may be called into question. Foreign brewers are more likely to concentrate on one or two global lager brands and cask ale may well be a casualty of their takeover. He further added that it might become harder to find cask-conditioned ales in public houses in the future. Heineken are favourites to buy at least one of the breweries as Heineken is only brewed by license in this country. That license is due to run out within

eighteen months. Whatever the outcome of any competition enquiry the story is far from being settled. However a spokesman for Whitbread, Jeremy Probert, was quick to dispel rumours and stated ‘ Our terms and conditions for lessees are staying exactly the same over cask ale and everything else’ So at least for the foreseeable future guest beers are safe. As we go to press strong rumours are circulating that Bass may become the next target of a takeover by, yes you have guessed it, Interbrew. Surely such a case would have to be referred to the D.T.I. Warning Our members are urged to advise their clients about a problem that seems to be on the increase. Basically the import of soft drinks and other non-dutiable items is causing some concern with local authorities. Recently Hull magistrates successfully prosecuted both a retailer and his wholesaler for selling Polish Fruit Juice complete with Polish labels. This was after a consumer who suffered from diabetes complained that he could not tell if the juice contained sugar or artificial sweeteners. All products offered for sale must comply with current stringent labelling regulations – obviously these must be in English. This should be born in mind when purchasing what appears to be a bargain – it may cost your client more in the long run. Licence Fee Increase At the moment licensees pay £ 30 for a three year licence. This will change if proposals from the Home Secretary, Jack Straw are accepted. Licensees would apply for a personal licence lasting ten years and then a licence to cover the suitability of the premises. This is a proposal that was first made back in the 1980’s by the now defunct NLVA and would I feel make sense.

It would be easier for management companies to operate because presumably relief managers would be licensed for any premises in the country without the present system of protection orders and full transfers. I have noticed also a trend for companies to threaten legal action to managers who have contributed to the loss of a liquor or Public Entertainment License. Whilst I am fully in support of the above proposal I am slightly worried about the second part of the reform. This is that the local authority will become responsible for granting and setting the fees for such licences. At the moment the £30 fee is set by the Lord Chancellor’s office. It is proposed that the administration will be passed on to the local authority, again a perfectly logical change in view of impending licence reform, however when you look at their treatment of Public Entertainment Licences ( PEL) we can perhaps expect substantial increases. The Local authority has a legal duty to recover costs for the provision of a PEL but this has seen charges between differing local authorities ranging from £50 to £ 20,000. This has caused great hardship to some businesses and indeed some have not remained viable. To combat this it is proposed that fees will be standardised by central government. The range that is being discussed would be an annual charge of £30 - £50 for the personal license and an administration charge of between £150 and £500 for the premises. What is obvious is that it will be a lot more expensive than the present system although many of the present licenses such as children’s certificates will be scrapped.

IMPORTANT MILESTONE REACHED FOR PART-TIMERS ON 1 JULY Stephen Byers, Secretary of State for Trade and Industry, announced on Thursday 29 June that new part-time rights coming into force on Saturday 1 July will help stamp out discrimination for over 400,000 mainly women workers on pay, pensions, training and holidays. This will ensure that all six million part-time workers are now treated as favourably as full-timers. As well as giving part-timers the same rewards as full-timers on a pro-rata basis, the regulations are designed to promote flexible working as well as encouraging people to achieve a better work life balance. Women make up 80 per cent of Britain’s six million part-timers. Though the majority are treated as favourably as full-timers, the new legislation will end unjustifiable discrimination for all six million where it persists. Stephen Byers said:

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“Where discrimination remains it must be ended. On Saturday we reach an important milestone for employment rights when over 400,000 parttimers should see an improvement in their conditions. “Part-time work is a vital part of both

the modern workplace and the modern economy. It is essential that part-time work is properly valued and rewarded. The Government is strongly committed to promoting the status and flexibility of part-time work and to providing minimum standards. “Businesses need to draw on the greatest pool of talent possible. Our measures will enhance competitiveness by encouraging more skilled people back into the labour market.” The new measures should encourage more people to consider working part-time as their circumstances change. Traditionally part-time working has been associated with parenthood. But it can also suit carers, students, the retired and those preparing to retire. And it can provide an income for entrepreneurs when they are first starting out on a new venture. Information on the new measures is provided on the DTI website This has been produced by the DTI in discussion with a broadly based working group including representatives from small businesses and the CBI, TUC, Equal Opportunities Commission and personnel specialists. Drawing on

this expertise has ensured that the information is tailored for the people who need it most. 1. Under the rights, full-time workers who start working part-time will now be able to compare their new terms and conditions with their previous package. This will be particularly helpful to women returning to work part-time after maternity leave. 2. The regulations have been introduced with a light-touch by ensuring that comparisons can only be made between part-time and full-time workers with the same type of contract. Businesses had a full eight weeks to prepare for the final implementation. The regulations were extended from employees to workers to help some of the most vulnerable members of the workforce including agency workers. 3. The written statement procedure has been strengthened. Part-timers who believe they have been treated unfairly must now request a statement in writing; and the timescale for providing an answer has been increased from 14 to 21 days. This will provide an important opportunity for parttimers and their employers to resolve any problems before a complaint to an employment tribunal becomes necessary. 4. Paper copies of the regulations can be obtained from the HMSO on 0345 2023474 or on the Internet at http://www.dti.gov.uk/er/ptime.htm

new phenomenon has emerged that is taking the licensed trade, both on and off sales, by storm. I am of course referring to the emergence of high-energy drinks. These have become part of a much lager subcategory and most stock auditors probably group them with alco-pops. I think that it is fair to say that the market was dominated by years by Lucozade that

was the only one of its kind. Made by a pharmaceutical firm, SmithKline Beecham it was often drank for its medicinal qualities. Being high in glucose it was argued that the body could assimilate this source of energy easily. A campaign was started using sportsmen such as Daley Thompson and John Barnes promoting ‘Lucozade Sport’ advocating the drinking of Lucozade sport for purely recreational purposes. They still pushed the recuperative qualities of the drink and the ease that the body could take in the energy that they contained. Since 1995 there has been, at a

conservative estimate, the emergence of over forty brands. As with all new drinks they have often been accompanied by an aggressive marketing campaign and few people have not heard of Red Bull, Lipovitan, Warp and Red Devil to name but a few. When Red Bull was launched in 1993 it confused consumers who did not understand what exactly this new drink was, was it an expensive Lucozade or a new beer? After an extensive advertising campaign the floodgates were opened and drink companies were quick to jump on the bandwagon. Liptovan was imported from Japan in 1997 and Red Devil in 1999. Virgin Cola soon landed its drink range DT/NT. One of the world’s largest research units, Zenith International recently produced a report on the energy drink market. They established three clear strands a) ‘Refreshment energy’ such as Lucozade Original. b) ‘Sports Energy’ such as Lucozade Isotonic and c) ‘Functional energy’ such as Red Bull, Liptovan and Red Devil. Red Bull This has become the market leader in the ‘functional energy’ drinks sub-category, not just because it was one of the first on the market but it quickly found favour amongst the youth market. It is equally as pleasant on its own or mixed with any white spirit. According to Zenith it has a 72% share of the ‘functional energy’ market and has enjoyed a remarkable year on year growth of some 200%. Other companies, quick to recognise success quickly developed their drinks in this lucrative market. Lucozade launched its Solstis Brand in 1999 as a direct competitor to Red Bull. As Red Bull is often drunk with white spirits, particularly vodka, it can often increase sales of other drinks. Red Devil Although a relative newcomer, it was only

launched in 1999, this drink has already caught on as a mixer, particularly with vodka and champagne. The predominant flavour is cherries. Solstis Comes from the Lucozade stable, with all that implies. It is infused with Guarana extract that gives it a unique Latin American taste. Although marketed strongly it has a long way to go to threaten Red Bull’s dominance of the market. It is

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a golden colour similar to the original Lucozade. Warp Yet another new drink launched last year. It is an Austrian drink and is said to have the smell of Tizer or Coca Cola. There the similarities end as it has a dryer taste that mixes well with most spirits. It has a fruity tang and has Taurine and caffeine added. It has been blended with gin to make a ‘London Diva’ whilst mixed with the Italian liqueur it make a Tuarpedo. VR Differs from the rest of the energy drinks listed here in that it has an added punch. Vodka has been blended with it to give it a 5.4. a.b.v. It tastes of wine gums but has the kick of the spirit. It was launched in March 1999 and has great success particularly with the 20 – 25 year olds.

The Magazine of the Institute of Licensed Trade Stock Auditors

High Energy Drinks - A Review

The Magazine of the Institute of Licensed Trade Stock Auditors

Nightclubs I

recently came across some interesting facts about nightclubs. From the table below you will see that Luminar and First Leisure between them own nearly 12% of the British Market although most nightclubs are still owned by small independent operators. On a quick count nightclubs represent some 5% of my clients but nearly 12% of my income due to the complexities and turnover that they produce. As Stock Auditors we ignore them at our peril. Recently the industry has been in turmoil with many clubs changing hands often more than once in the past decade. The situation has worsened lately with uncertainty about the new licensing reform. Often competition is provided by outlets trading as pubs and bars throughout the day but change to a club after 11.00 p.m. Such outlets often do not charge any admission and have cornered some of the traditional club market. These outlets have particularly attracted the student market which fits in very nicely with their surge of business at the weekends. At present Friday and Saturday nights usually contribute 70% of the takings so the student clientele is becoming increasingly important. This is why pub chains are actively opening outlets around university and college campuses. As regards the sales mix within the clubs this appears to be heavily biased towards the bars with about 71% of sales being made over the bar, 7% on food and 19% on admissions. The remaining 3% is made up by cloakroom and other sundry sales. Population trends give some encouragement to nightclub owners as shown in the table below. Because of the extremely fragmented nature of the market there is little financial information available for the industry but Mondiale, a Stockport publishing company is currently undertaking a comprehensive survey of this lucrative market. However data has also been collated by the Mintel.

Thereâ&#x20AC;&#x2122;s more to it than you think I

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am sure all our readers will have an understanding of the processes used to produce alcoholic drinks but have you ever thought about the container? For example the labels on beer bottles. Prior to filling the bottles are washed and at the point of filling they are cold and wet. I am sure you all have some familiarity with adhesives even if only via wallpaper hanging. Adhesion is bought about by using a liquid which will wet intimately the two surfaces to be stuck together and then after they are bought together the liquid is transformed into a solid to complete the bond. Beer bottles are already wet and the adhesive must be able to displace the water on the bottle before it has a chance to work. The method by which the adhesive (in the

case of beer bottles) is converted to a solid is by the water in which the adhesive material is dissolved or suspended being lost through absorption into the label or by evaporation. A modern beer bottling line can run at up to 1,200 bottles per minute or 20 bottles per second. The adhesive has very little time in which to produce a bond which is stable enough to stay in place until the full drying process has taken place. Later in its life the beer bottle may be placed in an ice bucket - the label must not come off! Later still the bottle may be recycled and in the washing and cleaning process the label must be easily removable. One bottle may have up to four labels - think how difficult it must be to ensure the neck labels stay in place on a part of the bottle which has a double

curvature. The label may be a foil label which resists bending. Finally there is often a foil over the bottle cap which is totally non absorbent and therefore the only way the water can be removed to form a bond is by evaporation - through the edge. Basically there is only one material that has so far been found to provide the properties required to label beer bottles, namely casein. Casein is produced from the protein portion of milk and because milk is a natural product it is variable - the last problem the adhesive manufacturer faces. The next time you do a stocktake spare a thought for the incredible amount of technology that not only goes into making the beer but how much is needed just to put the label on.

by Tony Allen of Stayclean “WHAT ABOUT THE FIDDLE?”

Beer Pipe Cleaning is probably the only remaining “variable’ left in the trade and

of neglect will quickly become evident. It stands to reason then that it should be carried out efficiently, following recommended brewery procedure and thoroughly. This does not mean leaving to soak and flush through with water. It is not the intention to go into lengthy detailed description of how to clean pipes but certain criteria is important.

remains open to both interpretation and practice.

1 ) A pre-clean flush with water to remove beer from lines.

BEER PIPE CLEANING FACTUAL - Since the year dot, breweries have laid down the law on line cleaning being carried out at least weekly as a means of preserving the product in first class condition. For conscientious licensees that has been priority. However, in the 90"s the emergence of newly formed pub operating chains led to an increasing tendency to engage ever younger licensees whose understandable priorities were maximising profits. (‘They would be judged by their lost stock result). Concurrently the rapid growth of nitro keg beers and lager led to a lowering of expectations by the majority of customers in their appreciation of what constituted a good pint. So, Catch 22 - why clean pipes so often?

2) Leave detergent in for 20 minutes.

Would you think that was a) an enquiry from the member of the orchestra, b) part of a fairy story, as in “Cat & The Fiddle”) the anguished cry of a licensed trade manager about to lose his beer pipe cleaning allowance?

The breweries policy when fitting out bars and cellars in free trade accounts but not in their own managed houses, was to install as many counter taps as they could get away with, and in the cellar a longer than necessary feed pipe. With the average tap line holding three pints, twenty taps meant a sixty pint weekly waste allowance. That sixty pints which weekly went down the drain had to be purchased from, (guess who?). Correct, the brewery. Therefore, annually, an operator buys and throws away over three thousand pints to clean beer pipes that do not even belong to him. In the second place maybe the pipes were cleaned every two weeks but the same allowance made. Whichever scenario the operator loses at retail price approximately £5,000 every year on every outlet.

BEER PIPE CLEANING - ACTUAL Beer pipe cleaning is a chore which no one looks forward to carrying out. Therein lies the second reason for not doing it, but the consequences

4) Bleed fob detectors in cellar to clean bleeder pipe and prevent bacteria feeding back into the

B. Stocktakers are usually in cellars early morning - observe if they hard pegged the cask overnight. If not, for 12 hours condition has been leaving the cask leading to flat beer. C. Automatic stillages are becoming more apparent and lead to less waste and ease of handling. D. Is the cellar too warm (over 12o C) or too cold? E. Beer pipes - are they old and need renewing? Pipes carry a stamped date and if over 4 years old should be replaced at no cost. The caustic in cleaning detergents causes brittleness to the materials lining the pipes leading to loss of plasticisers and discolouration. CONCLUSION The licensed trade has changed substantially in recent years. Practices that have been ever present and traditional have become dated either by government legislation or the hard facts of economic survival. The recent sell off of both Whitbreads and Bass breweries is testament to the fact that even the big boys are having to diversify and we all, in our own smaller way, must embrace whatever opportunities present themselves.

main pipe 5) Flush out with sufficient water to remove all evidence of detergent. Pipe cleaning is time consuming, boring and expensive - but the pride in serving a first class pint makes it all worthwhile. THE STOCKTAKERS ROLE

Having been privileged to be asked to contribute this article, it would be remiss of me not to mention my Company’s existing role in the trade, with which we have been involved for 36 years. The Company is Stayclean Beerpipe Systems and our system guarantees clean beer pipes for at least one month. In simple terms the weekly procedure described earlier in this article now becomes at minimum monthly operation, giving a reduction of 75% in beer waste. Additionally the fiddle is no longer part of the orchestra.

The stocktaker is a highly respected professional in the licensed trade and though sometimes chastised (usually when he’s left) has the ear of the business on his side. In recent years his/her role appears to have encompassed the whole spectrum of a licensed trade advisory service and there is much opportunity to enhance ones’ reputation by offering advice. Sticking to what one does best used to be sufficient, but valuable advice given to the right people can lead to substantially improved profitability. However, the advice needs to be properly sourced and 100% factual - as they say “a little learning is a dangerous thing”. So lets raise a few points by looking at general advice to be given regarding cellars and products.

In the Breweries Guardian publication in 1975 a major brewery technical services manager said, quote, “the ideal solutions to beer pipe cleaning problems are either, for the brewer to make beer which will not soil the equipment or by cellar services technologists making pipes that are not soiled by beer”. Twenty-five years later we have now achieved what the brewers failed to address. Its not electrical, magnetic or an automatic system, but 100% guaranteed. Should you feel this 75% reduction in pipe cleaning costs worth including in your portfolio of knowledge, we would be pleased to pass on the information. If not, we hope this article has been interesting and informative.

CASK BEERS

Should you require more information Tony Allen can be contacted on 0121550 6347

A. If on sale - how many? Is throughput justified or could they reduce the number on offer? For example if they sell 4 real ales but 2 are slow sellers, by removing one or both, sales of the

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In conclusion on this subject did you know that in America, the suppliers of the beer, be it the brewery or wholesaler, are responsible for keeping their own beer pipes clean? The supplier employs subcontract cleaners at their cost and also pays for the beer wasted during the clean. In the Tampa Bay area of Florida alone Anheuser Busch spends over $250,000 every year on pipe cleaning.

3) Draw off initial detergent and replace with fresh fluid i.e. 3 pints per line.

remaining should increase, therefore emptying each cask quicker and offering fresher beer.

The Magazine of the Institute of Licensed Trade Stock Auditors

Some Thoughts on Beer Line Cleaning

The Magazine of the Institute of Licensed Trade Stock Auditors

Taking the Mixture as Before “Oh, I mix them like mad,” said the foolhardy lad, “and it’s never done me any harm. I’ll sup up a Gin, then a Lager -Chin Chin then an Absinthe, with never a qualm. I’ll follow a Stout with a Sherry - My Shout then a hair of the dog that has bit me; gulp a couple of Beers with a Rum and Lime Cheers and not feel as though anything’s hit me. It’s my personal boast Here’s a toast to Mine Host that I blend a Glenfiddich with Porter and happily raise up my glass - Happy Days just provided it’s not mixed with water. I love Whisky and Soda -

Let’s have one for the road - a Light Ale is my favourite chaser, and to top any mixture I’m fond of a fixture of Creme de Cacao - One more Bracer? I’ll mix Kummel and Rye and Here’s Mud in your Eye I’ll flavour them both with a spoonful of smooth Chartreuse (green) and then God Save the Queen a Napoleon by the balloonful. Zibid, Hock, Claret Cup, Eau de Vie - Bottoms Up Cider, Burgundy, Pernod and Guinness; I’ll swallow the lot by the tankard or tot, and still be quite clear where my chin is. I’ll forego Aqua Pura but not Angostura, I like the odd glass of Madeira; I’d expend all my wealth

on Pimms - Jolly Good Health and a Vino will get my last lira. My hobbies in Who’s Who list Volnay and Ouzo and blending the each with the other or a large Gin and Lime, Brandy Sour Here’s to Crime or a Port Are you having another? Prosit; Skall; Iechyd-da;” There he stood at the bar knocking everything back, quite regardless. “Yes, I mix them like mad,” said the foolhardy lad, “It’s quite harmless, so I have read.” He topped Dubonnet with a long Pousse Cafe and, smiling, the lad fell down dead. John Taylor

An Audience with Jim Bowman-Smith The Dundee Lad For members who attended the AGM Jim will need no introduction. However he has had a varied career starting off as a whisky salesman (no suprises there), hotel manager, lecturer and finally stock auditor.

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1. Your first job was? Office boy with Stewarts Cream of the Barley. 2. How much was your first pay packet? In old money 5/- gross 4/5 net. 3. Your best subject at school? History. 4. If you weren’t a stock auditor what would you like to do? Be a chartered accountant. 5. What is your favourite time of day, and why? 6.00 p.m. for the news, a meal and time with Sheila. 6. What was your worst mistake (be honest)...? Owning an overseas property. 7. Name one person you would most like to have dinner with and why? Billy Connelly for his humorous attitude. 8. Your favourite place is? Palm Springs, California in the winter. 9. What is your biggest fear? Losing my hogshead new-fill malt whisky. 10. Who in the licensed trade do you admire most? Brewers and distillers tempting us to buy. 11. If you have to admit to having a fault what would it be? Not admitting to any fault. 12. What is your favourite book? George Orwell’s “Animal Farm”. 13. Your favourite film? Compton McKenzie in “Whisky Galore”. 14. What is your top time saving tip? Use a computer for extended results. 15. What makes you really angry? Cowboy stocktakers. 16. What, or who, could you not live without? A wee dram of scotch. 17. What do you spend most money on? Winter holidays. 18. What’s the best device or gadget that you have ever bought? A microwave. 19. What would be the ideal day away from the office? A car ride and a picnic on the East Coast of Scotland. 20. What is the most overrated virtue? Temperance. 21. What advice would you give anyone starting out as a stock auditor today? Be enthusiastic to do well and learn the basics. 22. As Prime Minister what would be your first task? Everyone needing old age residential care is accepted without selling their assets. 23. What attributes do you think make a good stock auditor? Quality interest, punctuality, meticulous recording and an expert knowledge of trading accountancy. 24. What is the highest compliment you have been paid? Relatives and friends saying, “You are a good husband”. 25. Finally what would you like your epitaph to be? He did his best and the best is yet to come.

Sunday Dancing Update Regular readers of the Daily Telegraph may have read an article on 25th May headed “Lords of the Dance Put Foot Down on Sunday Discos”. It stated “complaints from people kept awake by Britain’s smartest and wealthiest young partygoers have stopped the Government repealing a 220 year old law against Sunday dancing. Home Officer Ministers have privately confessed that they dare not go on with an order repealing the 1780 legislation which has slipped through the Commons. It is likely to be rewritten after objections from Kensington and Chelsea residents who do not want to be kept awake by young people partying into Mondays. A Minister said, we really thought this was going to go through without any problems, but the House of Lords is so frisky at the moment that we will have to rethink it. The trouble is that there are too many Lords living near the Chelsea disco land”. We can only hope that the Home Office have second thoughts and don’t back down on this long overdue deregulation order in the face of this minority objection. Well over 50 councils supported the Government’s intention to remove this ancient and outdated restriction. A very small number thought it should be retained. Proprietors of discotheques and others with special hours certificates will know that New Years Eve 2000 falls on a Sunday. The last time that this happened was in 1995 when a similar deregulation order also failed to survive the Parliamentary procedure. Kensington and

By Jeremy Allen - Poppleston Allen

Chelsea campaigned heavily against the change that year too. The result was that a large number of discotheques could only open and charge for entry by forming private members clubs to cover Christmas Eve and New Years Eve night. Magistrates had to be requested to grant extensions from 10.30 p.m. This was a huge expense for the industry creating a patchy series of closing hours with many discotheques having to close earlier than they normally would. Unfortunately, the leisure industry has become used to endeavouring to plan its future promotions with little idea of the likely legislative parameters. Nonetheless there must be many proprietors of premises with special hour certificates who are wondering whether to proceed with Sunday clubs and applications for extension now or wait to see the result of the Parliamentary process. The best advice may be to assume that nothing will change in time for the next New Year. Even if the deregulation order is passed a special hours certificate would not be granted beyond 12.30 a.m. Maybe it is prudent to get those special exemption orders in place in any event. On a wider front The House of Lords deregulation committee has stated that it doesn’t believe it should be obliged to consider any further deregulation orders in respect of licensing until the Government’s White Paper has produced a new licensing bill to go through the statutory procedures. We naturally agree that the licensing laws are in need of a major overhaul. Nonetheless, any Licensing Reform

Bill is going to be complex and, if it is to be effective, will need detailed scrutiny by both Houses. Such a statute is still some way off and it is always possible that it could end up losing out to more pressing bills and not come forward at all. Whilst there is only a slim chance of this happening there are many examples of major law reform agreed by all parties which have failed to get on statute books through insufficient parliamentary time. The House of Lords should not use the proposed legislation as an excuse for holding up long overdue reform. Lets hope that the Government forces a vote and that the Lords have second thoughts. If this attitude persists, then the long awaited and widely supported reform of restaurant hours would also fail. So will any deregulation order which could give increased hours on New Years Eve this year.

HEALTH AND SAFETY - WHO’S RESPONSIBILITY? by Kirsty Pearson - Poppleston Allen

created. When someone dies as a result of failure in the Health and Safety systems, a company can’t be sent to prison. So what are the penalties? A company can be subject to an unlimited fine

A management failure causes or is one of the causes of death The failure falls below what can reasonably be expected

A failure occurs if the way in which activities are managed or organised fails to ensure the Health and Safety of persons affected Such a failure is a cause of death notwithstanding that the immediate cause is the act or omission of an individual It is envisaged that the new report will follow these guidelines. This means that in high profile cases the senior directors will be held accountable and the law will no longer be different between small and large companies because it’s easier to identify the controlling mind of a small company.

These articles do not constitute legal advice and while every effort is made to ensure the accuracy of information contained in this publication, no guarantee is expressed or implied and Poppleston Allen do not accept liability for any loss or damage that may arise from any errors or omissions.

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The shortcomings in Health and Safety legislation have been in the news recently, especially over the recent rail enquiry. Following a public outcry at the decision not to prosecute any individuals or firms for manslaughter, leaks from a consultation paper indicate that the law on manslaughter will be simplified and a new offence of corporate killing

in the Crown Court and to a £20,000 fine in the Magistrates’ Court. But is this a sufficient deterrent? I have already written about the review of levels of fines but is it enough? An individual can, however, be sent to prison following a conviction for manslaughter but is the full extent of the law being utilised? It has come to light that the CPS has being using the wrong test for deciding whether or not to bring a prosecution. Does this mean that the lack of prosecutions for manslaughter following workplace deaths (only six company directors have been convicted) is not a problem with existing legislation but with the CPS? There have been many high profile examples of disasters - from Zebrugge to Kings Cross but there have been no individuals who can be said to be the “controlling mind” of the company for manslaughter charges to be brought. A report in 1996 recommended the abolition of this test and proposed a new offence of corporate killing if -

The Magazine of the Institute of Licensed Trade Stock Auditors

Legal Updates by Poppleston Allen

The Magazine of the Institute of Licensed Trade Stock Auditors

breweries. Theakston employs one of only eight of Britain’s working brewery coopers.

Continued from page 12 the Old Peculier, is thought to be the 12th Century Lord of Mashamshire, Roger de Mowbury, who went to the Holy Land to fight the crusades with Richard the Lionheart.

The production of a cask for beer is a lengthy and precise business and becoming a brewery cooper is no easy task. Enormous skill is required to fashion by hand a vessel that will be both beer tight and hold a precise quantity of ale. Since an ale cask is not just a container but also a measure in which beer is sold to the pub, each cask has to be made to hold its prescribed amount to within just one pint.

There he was captured by Saladin and held to ransom for seven years, until he was redeemed by the Knights Templer. The Chairman of the original court was known as ‘The Official of the Peculier of Masham’ and had the great seal made to mark his descisions and approvals. The original seal was lost, but the one in use today, was granted by George III in 1741.

It takes four years to complete an apprenticeship under the experienced eye of a qualified craftsman. Three-quarters of the way through an apprenticeship, the young cooper undertakes a trade test at which members of the National Coopers Federation visit him in his place of work and assess his skills in making and repairing casks.

The meaning of the various symbols on the seal is not known but the kneeling man may signify Roger de Mowbury as a prisoner of Saladin. ‘Peculier’, incidentally, is an old French word meaning particular rather than odd. Raising a barrel to coopering The wooden barrel – or more correctly, cask – is one of history’s greatest inventions and the Theakston brewery in Masham, continues to champion traditional cask methods. Casks were used as long ago as Egyptian times to move and store most commodities. For centuries they were the only secure and watertight means of moving a whole range of goods. The highly skilled and respected group of craftsmen known as coopers or barrel makers are an increasingly rare breed. The introduction of a metal cask in the late 1950’s nearly wiped

out the craft of brewery cooperage within a few short years. They were cheaper to produce, easier to clean and required less maintenance. Forty years on and the skilled craft of the cooper survives in only a handful of traditional

When an apprentice cooper finally reaches his qualification he is ‘trussed-in’, a rare event these days with so few brewery coopers left. The ceremony is marked by the attendance of qualified coopers from other breweries who ceremoniously raise a hogshead, the 54-gallon cask, specially made up by the young cooper with him inside it! The hoops are driven down to complete the shaping of the cask, before various unsavoury by-products from the brewery are thrown in and the unfortunate initiate is rolled around the brewery yard. Traditionally, the ceremony is completed by the quaffing of ale provided for the coopers free of charge by the brewery.

CROSSWORD Across 1. Inventory 7. Ingress 8. Whiskery fishes 9. Mountain pass 10. This sometimes goes in gin 11. Assault 13. What some stock auditors use to keep in touch 14. What to do with claret before drinking it 17. Explodes 18. Totals 20. Baby cat; equipment 22. Stock Auditors need a good one to find a new client 23. The one who gets the money 24. Climbed

A bottle of Scotch to the first correct answer pulled on 21st July from among those sent to:-

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Answers to June Crossword

Associate membership • Affords the opportunity to take the Institutes exams and to become qualified in your chosen career • Receive regular magazines • 10% off all Institute merchandise (except ties and ‘Taking Stock’) • Substantial discounts on both Mandata and Stockmaster computer programmes • Discounts on home contents and business insurance (working from home) • Opportunities for training • Attendance at AGMs and Regional Meetings • Access to expertise • Massive discount on AA membership Full Membership (only available after passing the examination)

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To benefit by membership and letters MILSA after your name To be qualified in your chosen career and to receive regular magazines 10% off all Institute merchandise (except ties and ‘Taking Stock’) Substantial discounts on both Mandata and Stockmaster computer programs Discounts on home contents and business insurance (working from home) Opportunities for training Attendance and a vote at AGMs Access to expertise Massive discount on AA membership

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Be able to feature in the group advertisement inserted in the Morning Advertiser twice per annum

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As for membership but with letters FILSA after your name An additional 5% off Institute merchandise To receive a certificate of fellowship Gain status within the profession Highlighted entries in both Licensee advertising and in group brochures or other marketing done by the Institute

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The Breweries of Britain A Series by Trevor Knight Part Sixteen

Theakstons – Masham, North Yorkshire

pland moors sweep to a score of summits of more than 2000 feet in the Yorkshire Dales. They are wild, often windswept and infinitely appealing to those with a taste for solitude. Over a million years ago, ice flowing down the eastern side of the Pennines carved out the dales in their distinctive shapes. In Swaledale, shaggy sheep graze the steep slopes, surviving all but the fiercest winter storms; and smoke curls from the chimneys of some of England’s loneliest farms. Wensleydale, watered by the River Ure with its three spectacular waterfalls, is the broadest, most open and wooded of the Yorkshire Dales. Other valleys burrow between the limestone hills, the slopes of which are patterned with dry stonewalls. Castles and monastic ruins recall the Middle Ages when wealth was based on wool. Almost every village and hamlet is dignified by sturdy, greystone cottages and by Georgian houses from a later period of prosperity. The churches are intimate rather than grand and in many churchyards sheep graze among the gravestones. Masham – Shaggy sheep and good ale Masham (pronounced “Massam”) sits astride the River Ure at the eastern end of Wensleydale. It is a small, attractive market town with neat, sturdy stone houses and shops flanking the large square with its market cross. A Saxon pillar depicting Christ and his disciples and believed to be more than 1000 years old can be seen in the churchyard of St. Mary’s. Masham was a very important town in the Middle Ages when it was the centre of the wealthy wool trade. It was famous for its sheep sales and the Sheep Fair is still held here every year at the end of September. But these days, Masham is better known all year round as the home of the Theakston Brewery and its famous traditional ales.

Robert Theakston and the Black Bull Inn Despite their violent reputation, the Normans wee agricultural folk and the Theakstons, like other descendants of the Vikings in the north of Egland, settled down and eventually became respectable landowners and farmers. I wasn’t until centuries later, in 1827 that a member of this largely farming family, one Rbert Theakston, decided that a life on the land ws not for him. So he leased the Black Bull Inn and brewhouse in Masham and began making what soon became ales of renown. Wth the help of his two sons, Thomas and Roert junior, the Robert Theakston brewery steadily expanded and, to secure outlets for his ales, Robert bought a number of local pubs. Guardians of the family tradition When old Robert died in 1875, his eldest son Thomas became the driving force behind the business. A new brewery was built in Red Lane, in a part of Masham called Paradise Fields. New blood came to the brewery when, in 1894, Thomas’s son Robert joined the company. He was followed some years later by his younger brother, Edwin, who proved to be so talented an ale man that he eventually became head brewer. When Thomas Theakston, the brewery builder died in 1919, Robert and Edwin became guardians of the family tradition. One of their first moves was to acquire the local competition, the Lightfoot Brewery, along with some very fine pubs. Expansion continued when in 1935, a business deal was done with Arrol’s Brewery in nearby Northallerton. Rapid Expansion The brewery’s development progressed through the 1960’s, followed by a period of rapid expansion in the 1970’s and 80’s. In 1987, Theakston joined Scottish and Newcastle

Many of the old traditions of the brewery have remained unchanged including the use of open fermenting vessels and the old mash tun in the beer-making process. Succeeding generations of the Theakston family are still actively involved in the business – Director, Michael Theakston representing the fourth generation of his family. For the past twenty years, demand for Theakston’s beers has been so high that brewing is now done in two places – Masham and Newcastle-upon-Tyne. The Black Bull in Paradise The Black Bull Inn and brewhouse were long ago replaced by the Old White Bear and when that was destroyed in 1941 by two German Luftwaffe parachute mines, its licence was transferred to some cottage nearby, adjoining the old Lightfoot Brewery. In 1875, Thomas Theakston built the ‘new’ brewery which stands today on Masham’s Paradise Field. Appropriately, the visitor centre at the brewery is called ‘The Black Bull in Paradise’. Here, guides show visitors the complete brewing process from the initial blending of all the ingredients down to the cooper making the wooden casks that are still used today. The Tale of the Peculier The Peculier Seal – the symbol of the kneeling man in the red cloak – has, for many years been borrowed by Theakston from St. Mary’s Church in Masham for its logo. The seal symbolises the town’s unusual distinction as a ‘Peculier jurisdiction’ – giving it the right to govern its own affairs without resorting to a higher authority. The figure of the seal, now known as Continued on page 10

Theakston XB (ABV 4.6%) is the brewery’s premium strength bitter, ruby coloured with a rich flavour and full body. The balance between bitterness and sweetness and the complex aroma makes XB a beer to savour.

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Old Peculier (ABV 5.7%) is by far the most famous of the Masham beers. Strong fruity character dominates in this malty, roasted ale. Dark malts and liquorish blend into a rainbow of flavour. This unique ale has acquired a large and enthusiastic following through Britain and many parts of the world. Theakston Best (ABV 3.9%) is the definitive English bitter. This fine, light coloured beer has a full flavour, which lingers pleasantly on the palate. It is noted for the aroma of the Fuggles hops.

Breweries, which became Scottish Courage in 1995.

Theakston Mild (ABV 3.6%) This traditional mild is a dark beer with a dry palate and a full, rounded hoppy flavour. The use of three malts makes for a pint with an eminently traditional texture and taste. Theakston’s Ales Theakston offers fine regularly brewed traditional ales. They are all very different but not all are available all year round. (Tasting notes by Theakstons)

Black Bull Bitter (ABV 3.9%) was first brewed as an occasional guest ale to celebrate Great British Pub Week in 1994. This very distinctive beer is now regularly available but

Number 16

August 2000

The bottom of the barrel Enjoy that pint. High rents and higher beer costs mean the pub may not be there much longer, reports Nick Mathiason

pubs in Britain, and over 10,000 of them are now owned by pub operating companies backed by City money. These players are not bound by the 1989 Beer Orders and are eager to acquire more pubs. Two weeks ago Enterprise Inns - the largest quoted pub operator snapped up 183 pubs from Whitbread for £119 million. It now owns more than 2,500 establishments. Enter prise and companies such as Japanese investment bank Nomura and Hugh Osmond’s Punch Taverns ,which are the leading pub companies, now act as quasiproperty firms, securitising the rent and beer sale incomes they receive from landlords. In addition, pub operating companies can negotiate with breweries for significant discounts on barrels of beer, beer that they sell on to landlords at huge margins. In effect, an expensive middleman has been created. Most make additional revenue out of the landlords when they leave their premises, hitting them for huge dilapidation claims. The situation has got so serious that earlier this year the Competition Commission reopened the Beer Orders inquiry. It is due to report this August, and those close to the inquiry indicate that it may force pub operating companies to reduce the price at which they sell beer to pubs. For struggling landlords, this

cannot come a moment too soon. According to the Brewers and Licensed Retailers Association, 1.3 million pints of beer are illegally imported each day. Minimum wages, increased business rates and EU directives on working conditions have also increased pub running costs. If that were not enough, UK

beer consumption is falling. The amount downed has fallen from 39.9 million barrels in 1989 to less than 36 million last year. Britain’s biggest brewers have now largely shunned pubs, preferring to focus on themed bars such as All Bar One and the Pitcher & Piano continued on page 4

Page 1

ritain’s pub landlords are becoming a threatened species. Free houses - pubs owned outright by the licensee - are rare, and the number of tied pubs - owned by a brewery which restricts the sale of outside beers - is diminishing Managed pubs, owned by the chains, where as the name implies the manager is paid a salary, may have their own problems with wages and conditions but the latest threat is to tenanted pubs, those where the licensee pays rent and buys beer from the operator, keeping whatever profit is left. Each month, according to the Campaign for Real Ale (Camra), 20 pubs close down. They are forced out by rent rises, low margins on beer sales, and by having to give half of their revenue from food and gaming machines to their landlords, the pub operating companies. In rural areas, the picture is particularly bleak, thanks to dramatic downturns in British farming. The plight of the landlord has worsened over the past 10 years - since the Beer Orders of 1989, under which the Government capped the amount of pubs any brewer could own and required breweries to allow landlords to sell a ‘guest beer’. The idea was to introduce new competition While new entrants have indeed emerged, this tactic appears to have failed. There are 60,000

The Magazine of the Institute of Licensed Trade Stock Auditors

ISSN 1471-0471

The Magazine of the Institute of Licensed Trade Stock Auditors

ass’t Editor’s View Alec Crighton

uly and August is the “silly season”. Politicians are on holiday and newspapers find they have to use irrelevant articles to fill the space. With Stock Auditor it is not much different. Chris Swift has been on holiday as has Bruce Thompson. All those members and outsiders willing to send us copy are also presumably on holiday. Also because of reduced resources we a week late with this issue - something I hope does not spoil your own holiday reading. Because of Chris Swifts vacation I am writing the leader section this month and with a dearth of interesting new copy it is possibly a good time to reflect on what is happening with Stock Auditor. I became involved with the Institute something over two years ago with the object of finding ways of raising its profile. The reasons for raising awareness of ILTSA and what the members can do for the licensed trade was mainly for two reasons. Firstly to try and increase the number of members so that by the extra income from subscriptions the Institute could become stronger to the benefit of the membership. The second reason was to improve, possibly through perception, the benefits to members and membership. The change that took place in May last year when the old Stocktaker became the new Stock Auditor was part of this process. By producing a monthly instead of a quarterly the news could be more up-to-date, but more importantly, the change was to make the magazine more interesting to, not only the membership, but to the clients of professional stock auditors. In other words to make Stock Auditor a way of spreading the message about the benefits to the licensed trade of using a qualified stock auditor. At the same time we wanted to make Stock Auditor something that other suppliers to the licensed would find of interest and wish to read and to make contributions, either as editorial offerings or by placing advertisements. I am sure we have achieved some of these things, but we cannot be sure - we need feedback - and basically cannot afford to carry out extensive surveys. You, the members can help. Tell us what will make the content more interesting to you and your clients. Tell us the names of people you think should receive copies, because as well as trying to attract subscribers, we want to develop a controlled circulation outside of the membership so that the message “professional stock auditors can improve your business” is spread as widely as possible. Write, e-mail, telephone, fax any of the names you see on page two - we are only trying to help you by making ILTSA as important to the licensed trade as, for example, the Institute of Chartered Accounts.

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All Subscriptions payable in advance. Published 12 times per year post free: Annual subscription £24 ISSN 1471-0471 © Institute of Licensed Trade Stock Auditors, 2000

by Bruce Thompson

ritain will shortly import more alcohol than it exports for the first time. Sales of wine and other foreign tipples have soared in recent years, while exports of Scotch have fallen. Gin and beer remain steady, the latter probably not for long, as foreign breweries continue to take over our own. In 1999 imports totalled a record £2.5 billion and exports £2.7 billion. Industry sources say imports will soon surge ahead.

the quality and temperature of real ale. Pubs had to apply for membership and if successful, after inspection, they were awarded the plaque. Many national companies such as J D Wetherspoon have participated, and whilst in general an excellent scheme, Cask Marque has been let down in a minority of pubs by lack of cooling at the bar counter, so that after a lull, or at the beginning of a new session the beer is warm.

It surprised me to read recently that sales of traditional or cask-conditioned beers have fallen by 45% in the last four years. Many of the breweries such as King & Barnes, Mitchells, Morlands, Morells, Vaux, Wards and Ushers have closed down, but as well there is a noticeable swing to keg beers. It is difficult to assess why people are changing their drinking habits, but a lot of the blame must go straight to those publicans who fail to look after their beer, or to keep their cellar temperatures right. Real ale is not particularly strong, on average 4.5%, but it is dry and has a complex flavour. It must be served properly - if it has not finished fermenting it will taste sweet, or if allowed to go stale or spoilt by acetic acid bacteria, it will become sour. Real ale should not be drunk warm, but at cellar temperature - about 12oC/54oF. This is only possible if pipes from the cellar and the cellar itself are kept cool. If real ale is being served then licensees must invest in the correct equipment. It was probably in the hot summer of 1995 that sales of traditional beers started their decline. They were served warm or went bad in overheated pub cellars. Bad quality was sustained during the heat wave with many consumers switching permanently to the new reliable cold and fizzy nitrokegs such as Caffreys. Some regional brewers responded by introducing the Cask Marque Scheme, which was intended to guarantee

Both Bass and Whitbread, two of the country’s largest three brewers, have recently abandoned brewing altogether so as to concentrate on other more profitable interests. If they take the view that sales of real ale are dying, then perhaps those beer drinkers

Bootlegging continues to thrive, but Customs are making inroads and gradually these criminals are being caught and given prison terms. In a recent three-day operation in Cornwall, 68,000 cigarettes, 223 kg. of hand rolling tobacco, 5,590 cigars, 318 Licensees Regulations litres spirit, 241 cases of wine and 830 litres of beer were seized. In this one haul Environmental Health £37,000 of duty had been evaded on these Employment Law good which had a retail value of over Under-age restrictions £60,000. The vehicle involved was also seized and I note from the current press Fire Regulations that this is, in future, to be the policy. On Building Control this particular operation 33 commercial Licensing Laws premises, including pubs, were visited Food Service Regulations also 83 private addresses. Two major operators have been taken out of business Performing Rights and enquiries are continuing. Customs Noise Restrictions vowed to carry out further raids and to Public Liability disrupt the black market as much as Cash Control possible. etc. The Institute office has been closed for a couple of weeks during July as Gina had a well-deserved holiday in the sunshine. I had a holiday for a week in Ireland with amongst us really do have something to worry Steve Berry which we both thoroughly about. enjoyed - good hotels, good weather and Thinking about the above and all the problems good scenery. We had a couple of rounds of the poor licensee has in maintaining his beer golf, but I am under threat of capital made me wonder just how many other things punishment if I disclose the score. He did he has to worry about. His livelihood is at though beat me at snooker. stake if he breaches regulations, but often he

Merchandise All prices include VAT (where applicable) and postage 10% discount to Associates and Members 15% discount to Fellows Discount only applies to merchandise

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The following are available through the Institute Goods Received Pads - £7.00 Bar Requisition Books - £5.50 Dipsticks - £18.50 “Taking Stock” books - £18.00 Hydrometers - £78.96

can’t afford, due to tight margins, any additional staff so as to give him time to ‘manage’ his business, and that is why so many publicans finish up working round the clock. They become tired, overworked, aggressive and ultimately lose interest in the pub, creating the inevitable downward spiral. Fortunately this isn’t always the case, but when I see some Breweries charging almost 15% of the projected turnover in rent, with very small discounts, I wonder how tenants can ever have hoped to have made a decent profit.

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SECRETARY’S CORNER

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NEWS ROUND UP Proof of Age Cards The Government appears to be ready to back a national scheme to provide proof-of-age cards. This follows a recent meeting of the All-Party Parliamentary Beer Group. Meetings will now take place with key industry bodies to determine the best methodology. King and Barnes Closed Production stopped at the Horsham brewery of King and Barnes on 21 July. King and Barnes Suusex Bitter and Old Ale will now be brewed Hall & Woodhouse’s Blandford brewery. Thomas Hardy’s Ale, may be history The Thomas Hardy Brewery of Dorchester, ceased production of all Eldridge Pope brands. Pope began producing the beer in 1968, and it soon became a cult classic. It was first made at the request of the Thomas Hardy Society to mark the 40th anniversary of the author’s death, and for years was the strongest regularly brewed beer in the world. Each vintage was blended from as many as six different brews and underwent three fermentations. In 1997, Eldridge Pope & Co. sold the Thomas Hardy Brewery to focus on its pubs and wine imports. In buying the brewery, former Courage Brewing production director Peter Ward said that his prime target was to “acquire business

continued from page 1

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chain, where customers tend to drink higher-margin bottled beer and spirits. The tactic has enticed more women into bars, but sceptics fear these establishments will have a limited life. ‘They will be rebranded or sold off once their novelty fades,’ said Iain Loe of Camra. ‘Landlords are under more pressure than ever. Upward-only rent contracts and red tape are forcing many out.’ The Federation of Licensed Victuallers’ Associations says that to survive, landlords need to develop legal and marketing skills. Indeed there are now vocational diplomas in running pubs. Enterprise Inns chief executive Ted Tuppen, an accountant who, until forming his company in 1991, never ran a pub or brewing firm, said: ‘The licensee is the person who makes the premises successful.’ But for many surviving on wages of less than £12,000 a year, Tuppen’s words are small beer. ‘A 16-hour day for £10,000. But we can’t go

from national brewers looking for spare capacity to cope with peak demand and smaller run length brands...” Hardy’s was one of the small run brands. Because of major changes which have taken place within the Eldridge Pope Management team, Thomas Hardy (Brewery) has ceased production of their major brands. Therefore, Hardy’s Ale is no longer available.”

July there was still a substantial split within the trade over the proposals. The British Institute of Innkeeping (BII) denied rumours that a large majority of its members disagreed with the move. Rumours suggested that as many as 70 per cent had come out against local authorities, due to concerns over inconsistency, political bias, overcharging and delays.

Fullers invest £20 million

The Brewers and Licensed Retailers Association (BLRA) was so divided it had not made up its mind on the issue. Some of the BLRA’s members attended a meeting hosted by the Magistrates’ Association earlier this month at London brewer Fuller’s. The Magistrates’ Association has already made a submission to the Home Office opposing the move on the grounds that it could infringe human rights. It claims it would be illegal to allow councils to make judicial decisions affecting the livelihood of licensees. Following the end of the consultation on July 31, a Home Office licensing panel will consider submissions and produce an amended list of proposals. Although no timescale has been set for the review, it is hoped that the new legislation could be finalised by the end of 2001.

Fuller’s, the west London brewer and pub and hotel retailer, is expanding its hotels division with a £20m spend over the next two years and has put the former head of the Granada group’s motorway travelodge chain in charge of the division. Justin Huber has been appointed operations manager of Fuller’s Hotels and English Inns brand. Fuller’s retail director Simon Emeny said: “English Inn Hotels represents a great niche opportunity for us. Positioned between the budget and the four-star hotels, offering good value, atmosphere and comfort with an extensive food and drink operation.” Licensees and pub operators are divided over plans to move licensing control to local authorities. As trade groups finalise their submissions on the government’s licensing reform consultation in

- it’s our home’ As a pub landlord, Peter Lyons claims to have lost more than £50,000 - his entire redundancy pay from the power industry job he lost six years ago. Lyons, aged 51, from Staffordshire, took on a pub with a history of failure but thought he could make it successful as it was in a prime location in a prosperous small town. After paying £600 to the owner, Enterprise Inns, for a weekend course, he began to suspect that the firm was after only one thing: his money. Initially, his rent was ‘reasonable’ since the previous tenant made a hash of the operation. But as trade picked up the rent doubled, and he found he had to buy beer exclusively from Enterprise. ‘I could have bought it £90 a barrel cheaper,’ he said. Lyons, who spent thousands on internal repairs without any contribution from Enterprise, was losing money, so he decided to move to a country pub run by a different operator. But within months, Enterprise took it over as part of a £50 million deal. A similar scenario unfolded. Lyons now works in a hospital. His savings have gone.

Tony Lister, 45, runs a thriving Newcastle pub which has been in his family for 34 years. Since the 1989 Beer Orders, it has changed hands four times. Lister’s rent hasn’t changed, but beer from his pub operator costs the same nationwide. ‘My punters haven’t the same income as those in the South East,’ he said. ‘My margin on beer is minimal.’ Lister pays £26,000 in rent and makes £10,000 each year. He wants to buy the pub, so that he can buy beer more cheaply, but the owner won’t sell. ‘I work 16 hours a day. I don’t think we can get out. This pub is my family’s home and we haven’t enough cash to start again.’ * Both interviewees requested that their names be changed. Guardian Unlimited © Guardian Newspapers Limited 2000 Reprinted from The Observer 4 July 2000 with kind permission of Guardian Newspapers Limited

Sunday Dancing Update by Jeremy Allen

he last Conservative Government failed to bring into force a de-regulation order in 1995 to remove the archaic restriction which prohibits public dancing on a Sunday where an admission charge has been made. They also failed to reform the Sunday drinking laws so as to permit discotheques to stay open later on Sunday night/Monday morning. A fresh attempt has been made by this Government with the stated intention of having the legislation in force before the summer recess. 1995 and 2000 are significant in that they are the only years of the past decade on which New Year’s Eve (and Christmas Eve) fall upon a Sunday. Those who like to dance the old year out and new year in will be disappointed by the carmudgeonly attitude of our politicians. To be fair to the House of Commons it’s the House of Lords who are causing all the problems. In both 1995 and 2000 they took evidence from Kensington & Chelsea one of the tiny minority of councils who actually oppose the change. The vast majority of

councils are supportive but the good burghers and Kensington & Chelsea, whose residents are pretty well heeled and presumably well known to their Lordships, clearly feel that Sunday should be a day of rest. The deregulation committee of the House of Lords therefore threw a spanner in the works by demanding an “opt in” option. This would mean that the law would only be changed if a particular council so decided, leading to patchy provision of Sunday dancing and possible border hopping. The Government could take the House of Lords head on. Alternatively Government could propose some sort of compromise to the Lords which might be acceptable to them. Whatever happens it is now practically impossible for the relevant legislation to be in place before the Parliamentarians trot off with their buckets and spades on 28 July to start their summer holidays. By the time they return, no doubt tanned and refreshed, it will be October which will be the earliest month that the de-regulation order

could be passed. The draft order contains a three month built in delay during which consents could be obtained but trading wouldn’t commence. This is to ensure that as many units as possible start Sunday trading on the same day. If that provision remains in the legislation then Sunday dancing will not be in place for this New Year’s Eve. The prudent operator will therefore be setting up Sunday clubs and applying for extensions to the liquor licence. In 1995 solicitors from Poppleston Allen travelled the country making such applications and we will no doubt be doing so again. What a waste of time and money. A prudent operator might also take a gamble on the new law being in place in October by getting his de-regulation ducks in a line. This would involve ensuring that the public entertainment licence permits dancing on Sunday and if not making an application for variation. The Home Office is after all confidently predicting a change in the law “before the end of the year”.

An Audience with Trevor Perrott Trevor first started in the licensed trade when he left hotel school in 1966. After working in hotels in Jersey, London and Lagos Nigeria he finally bought his own restaurant in Guildford. He started his stocktaking business in 1987 after selling the restaurant and has now built it up to a busy practise employing 3 staff. He lives in Old Woking with his wife Brenda and not forgetting Sukie the dog.

Page 5

Your first job was? A waiter at Hotel L’Horizon in Jersey. How much was your first pay packet? £7-7s-6d. per week gross. This was for a 60 hours week and 1 day in 10 off. The good life, it was living in. You’re best subject at school? Talking to the girls!!! If you weren’t a stock auditor what would you like to do? A fire fighter – I will follow a fire engine for miles just to see the action. What is your favourite time of day and why? Early evening when I have a can of Gales H.S.B. and a few nuts and crisps. What was your worst mistake (be honest)? Buying and then not selling my own leasehold restaurant at the right time. Name one person you would most like to have dinner with and why? Goldie Horn because of her personality and determination to succeed. Your favourite place is ? Vancouver – West Coast of Canada. One day I would love to live there. What is your biggest fear? My briefcase not being organised correctly. Who in the licensed trade do you admire most? Ainsley, the chef on “Ready Steady Cook”. The reason being that he has proved that you can work hard in the trade and enjoy it.. If you have to admit to having a fault what would it be? Expecting everybody to be as organised as me. What is your favourite book? “Taking Stock” - I am never without it !!!! Your favourite film? “Working Girl” - I have seen it at least six times. What is your top time saving tip? Organise your next days work the evening before so if you do happen to oversleep you do not leave home without all your correct paperwork, computer disks etc.. What makes you really angry? Inconsiderate drivers. What or who could you not live without? My steel comb – I have been known to comb my hair 20 times a day. What do you spend most money on? Rotary Club meetings that I attend weekly. What is the best devise or gadget that you have ever bought? Like Norman my electronic garage door. What would be the ideal day away from the office? A picnic in the forest with Brenda and my 15 year old Afghan Hound called Sukie. What is the most overrated virtue? Patience. What advise would you give anyone starting out as a stock auditor today? Be professional In your approach and dress at all times. As Prime Minister what would be your first task? Road Tax cyclists. What attributes do you think make a good stock auditor? Awareness, honesty and integrity. What is the highest compliment you have been paid? Passing my Advance Driving Test. Finally what would you like your epitaph to be? Trevor got out of life all he could and used it to the full.

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Legal Updates by Poppleston Allen

The Magazine of the Institute of Licensed Trade Stock Auditors

Continued from page 12 the first week in June to execute any order they may be favoured with for Table Beer, and will soon be able to supply Ale, Porter and Old Beer, as well as give complete satisfaction to their friends and secure their own reputation, particularly in Private families.” Like father - like son Benjamin’s third son, Edward, had already been working at the brewery alongside his father since he was thirteen-years old, by the time he was fifteen, he was practically running the business himself. When Edward finally came of age in 1836, his father officially retired leaving Edward to deal with the problems created by the Beer Act of 1830. Benjamin, meantime, had become a newspaper proprietor and had bought several large plantations in the West Indies. Edward Greene - country gentleman Edward was to spend his entire life running the brewery. He was also to become the most prominent country gentleman in Suffolk. His offices and titles included Justice of the Peace, High Sheriff and Member of Parliament. As a result of the Beer Act, beer sales increased dramatically and, as chairman, Edward was responsible for the expansion of the brewery during the 1850’s. By 1870, output had reached 40,000 barrels a year. Despite this increase in output, the old brewery in Westgate was cramped and life for the workforce was very hard. But Edward Green

introduced benefits for them that were practically unheard of elsewhere. He was very proud of his pension schemes for the elderly and widows, and his workers’ houses set new standards in the town. Expansion with Frederick King In 1887, Edward Greene amalgamated with rival brewer Frederick King, the owner of St. Edmunds brewery. The new firm of Greene King and Sons, became one of the largest country brewers in England with 148 pubs. Farmer Frederick King’s family owned maltings in the town but in 1868 he realised his ambition to become a brewer, purchasing Maulkin’s maltings and adjoining buildings for this purpose and renaming it St. Edmund’s Brewery. The competition from Greene’s brewery was too great however and in 1887 agreed to an amalgamation. Independent strength The relatively prosperous conditions of the late 1800’s also allowed for Greene King and Sons to rapidly expand its public house estate by purchase and acquisition. This coupled with the steady acquisition of sixteen other pub-owning breweries, increased the estate to over nine hundred pubs by the early 1960’s. the purchase of Marstons and Morlands in 1999 has now made Greene King one of the strongest independent breweries in the UK. All of the 1,140 pubs, mainly in the south of England, sell cask-conditioned beer. The leading brands of Abbot Ale and IPA are also available in 3,000 free trade outlets.

CROSSWORD

A bottle of Scotch to the first correct answer pulled on 8th September from among those sent to:-

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Rosemary Cottage Green Leas Chestfield Kent CT5 3JY

CAMRA AWARD A Northamptonshire railway station saved from closure by train and real ale enthusiasts has won a top CAMRA, the Campaign for Real Ale award. The Rushden Historical Transport Society has been named Britain’s Best Club. The club, featured in the Millennium edition of the Good Beer Guide, is described as ‘now a working railway station with a gas-lit private bar and museum housing transport memorabilia, always has six independent’s guest ales on tap.’ Simon Bishop, club steward said, “We’re absolutely delighted to have won CAMRA’s top club award.” Explaining the club’s success Mr Bishop said, “Our enthusiasm for real ale has been a big hit with the locals. Besides London Pride and Hop Back Summer Lightning, the two permanent beers on the bar, we also have an ever changing range of guests beers.” Mr Bishop went onto say, “Our commitment to real ale and our determination to provide a wide range of beers in tip top condition have made the club a huge success. We’re very proud of what we’ve done at Rushden.” John Holland, CAMRA National Executive member and chair of the judging panel said, “The Rushden Historical Transport Society are worthy winners of CAMRA’s top club award. It’s a very popular club. It just goes to show there’s real demand for the natural, fresh, distinctive taste of real ale.”

Across 1. Spirit galore! 4. There are dicers around the drinks. 7. UK rain, Ian put together for a foreigner. 9. Enid changed to eat. 10. A single one across. 11. Drink sounds sluggish with these fruit. 13. The Inn yet signifies a number. 14. Take these off. 15. Of tiny change gives advice. 17. Gongs for the damsel in distress. 19. The wrongdoer in a failsafe longitude. 20. A drink from fossil fuel. 23. The lead holes developed for the licensee to have. 24. Does the gunman organise these in the pub? 25. Percentage quota. Down 1. Fighting in the lion’s lair call for a lookout. 2. Seak for rice wine. 3. Annual? 4. Louts become and lager sometimes is. 5. A little drop of scotch. 6. Does the barman keep them for the roofer? Answers to July Crossword 7. Remove from office. 8. Sounds like a workman was not allowed out, but found the way. 11. Office workers use a stick. 12. Deadly sins? 15. Bees collect this for gods. 16. These give rise to American money. 17. Doesn’t start to suffocate, but is rescued by a parent. 18. Prison warders tighten a loose fitting. 22. - - - - on the Landscape.

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Beds. - Barry Ross 01234 344663 Bucks. - Norman Clements 01491 575451 Cambs. - John Glaysher 01206 211564 Derbys. - Leslie Kerr 01332 292233 Devon & Berks. - Norman Clements 01491 575451 Devon and Cornwall - Paul Gilder 01726 843366 Dorset - Richard Grafton 01305 813225 Gloucs. & Hereford - Danny Knight 01452 521080 Hants. - Jeff Batchelor 01329 314816 Herts. - Martin Roslyn 0121 744 4896 Kent & Essex - Anton Ellender 01303 277382 Lancs. & Cumbria - Les Graham 01254 240054 Leics. - George Abel 01664 850120 Lincs. - Chris Machin 01777 817821 London & Middx - John Walden 020 8856 1026 Midlands & Warks. - Martin Roslyn 0121 744 4896 Northants. - David Scott 0115 952 1393 Oxon. - Norman Clements 01491 575451 Salop. - Neil Acocks 01746 762297 Somerset - David Mills 01373 300035 S. Humberside - Graham Potter 01482 815411 Staffs. - Brian Daykin 0121 422 6421 Suffolk & Norfolk - Pat Simmons 01508 489628 Surrey - Roy Smith 01932 570900 Sussex - John Fincham 01273 304344 Tyne & Wear - Charles Robinson 0191 215 1785 Wilts. - Stephen Dauwalder 01722 340069 Worcs. - Bill Spry 01386 556911 Yorks. North - Kate Watson 01924 473225 Yorks. West & South - Rita Braodbent 01924 473225

Try a visit this month to the Somerset Cider Brandy web site at http://www.secure.web-pro.co.uk/ciderbrandy/ . Somerset Cider Brandy received in 1989 the first full cider distilling licence in recorded history. The site is full of interesting information on cider, apples and cider distilling. There are also some good links to other cider sites. You can even buy on-line.

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The Magazine of the Institute of Licensed Trade Stock Auditors

The Breweries of Britain A Series by Trevor Knight Part Seventeen

Greene King Bury St. Edmunds, Suffolk

dmund, King of East Anglia was murdered by the Danes in AD 870. Thirty -three years later the martyred Saxon King’s bones were brought to the local monastery after which the ancient market and cathedral town of Bury St. Edmunds was named. King Canute raised the monastery to the status of an abbey in 1032 and during the Middle Ages it was a shrine and centre of learning. In 1214, King John’s barons swore on the high altar to force the king to accept the Magna Carta, an event recalled in the town’s ancient motto, “Shrine of a King, cradle of the Law”. Bury St. Edmunds is the most important town

Abbot Ale (ABV 5%)

in West Suffolk with roads radiating in all directions. To the west are the vast, hedge less fields of the Fens which change dramatically through the seasons - sometimes bright with flowers or golden grain and at other times darkened by spreads of sugar beet, potatoes and cabbages. The vast heaths around Newmarket have been the home of horse-racing in Britain since the 17th. century. Northwards the roads run through sand and scrub. Once exclusive hunting country but now a mixture of plantations, military airfields and battle training areas. To the south, the River Stour, running through chalky lowlands, forms a natural boundary between Suffolk and Essex. The willows and poplar fringed paths and ditches through the water-meadows were to enchant the young artist John Constable. “Home of English brewing” This small market town in the heart of rural Suffolk could lay claim to the title of “home of English brewing”. There has been brewing in Bury St. Edmunds since at least as far back as 1086 when “cervisiarii”, or ale brewers, were recorded in the Domesday Book. Now, over 900 years and many small breweries later, Greene King is the only brewery left in Bury St. Edmunds to maintain the town’s fine tradition for brewing. So just what is the history of

Greene King? Benjamin Greene (1780 - 1860) Benjamin Greene laid the foundations of the company in 1799. On completion of his training as a brewer at Whitbread in London, the nineteen-year old came to Bury St. Edmunds to establish his own brewing business. He moved into a house in Crown Street that had once been the home of Abbot Reve, the last Abbot of Bury St. Edmunds. His marriage to Catherine Smith produced thirteen children, including a son, Edward, who was eventually to succeed him. In 1805, Benjamin entered into a significant partnership with sixty-year old Bury St. Edmunds yarn maker William Buck. Buck brought into the partnership a lifetime’s experience in business, a sound reputation and significant social standing in the town, while Benjamin Greene contributed youth, enthusiasm and, above all, a brewer’s training. Between them, the two men purchased the hundred-year old Wright’s Brewery in Westgate and began brewing together. Thus it was that on April 30, 1806, this advertisement appeared in the Bury and Norwich Post:“Messrs Buck and Greene beg leave respectfully to inform the public that they will be ready by

continued on page 10

The Abbot’s Place in History Within the Abbey walls, life for the Benedictine monks was hard. This was a largely silent order except during working hours when “necessary” talking was allowed in the cloisters.

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Greene King’s two-hundred-year old commemoration booklet states: “Abbot Ale is without doubt Green King’s flagship cask ale, strong and robust with masses of flavour and aroma. It’s enormously complex on the palate; rich in malt and ripe fruit with a superb hop balance, followed by an intense bitter sweet finish which stays temptingly in the mouth. These dark and delicious flavours develop as a result of an unusually long fermentation process which lasts a full seven days, or “blessed by the Sabbath”, as our brewers say.” Other brands in the Greene King portfolio include the popular session bitter IPA (ABV 3.6%); Triumph Ale (ABV 4.3%) is brewed with four different hops. The acquisition of Morlands in 1999, made the following beers available:- Ruddles County (ABV 4.7%) and OLD Speckled Hen (ABV 5.2%).

Their vows included those of poverty, obedience and stability (meaning committing themselves to the monastery for the rest of their lives). The monks were woken at 2 a.m./ for the first of three services. After the early morning Chapter meeting, they were required to work until midday. This was followed by High Mass, until, finally at 2 p.m. the monks would receive their one meal of the day, eaten in silence while one monk read aloud from the Bible. Dinner would be followed by a further two hours of reading before attending the final two services of the day - Vespers and Compline. Around seventy monks lived in the Abbey in 1086, as the Domesday Book records. It also chronicles ale brewers among the seventy five servants employed by the Abbot. They worked

in one of the three brew houses in the Abbey precincts. Greene King Brewers still draw water from the same wells, sunk deep into the town’ chalk beds, just as those early ale brewers had done before. In the Abbey, each monk was given a quantity of bread and ale and records show that the daily ale allowance was eight pints, rising to twelve pints if he was ill!

Number 18

October 2000

NEW GROUP CALLS ON GOVERNMENT TO RELEASE RED TAPE STRANGLEHOLD P

and red tape are strangling many pubs across the country, and the situation is getting worse. The campaign is a great collaborative effort from key players in the industry to send a clear message to Government that red tape costs – enough is enough”. The Group’s research reveals that the raft of regulations brought in since the Labour Government took power has angered and confused tenants. Over the past year alone, pubs have been hit with over 70 new pieces of legislation including the regulations on part time work, rules on genetically modified food, parental leave and new rules on rates appeals. Together these have combined to create a number of extra costs, and an overwhelming tide of paper. Bill Sharp, an individual tenant of the Unique Pub Company said: “This initiative is long overdue and extremely welcome. Regulations are a legal minefield and you need a PhD in maths just to read the forms. Publicans are now so tied up in red tape that they haven’t time to run their

business.” Brigid Simmonds, of the influential umbrella group Business in Sport & Leisure, said: “We will be seeking urgent talks with Government Ministers and officials to propose some solutions to lessen the burden of regulation. Many small businesses within our industry are on the critical list and may not survive in the long term unless immediate action is taken.” The campaign also has the support of small business leaders. David Hands, spokesman for the Federation of Small Business said:

“Red tape is the number one issue facing small firms. Too much legislation introduced too quickly is leaving business confused and uncompetitive”. The Red Tape Group was established earlier this year and comprises tenants and their representative bodies including Association of Licensed Multiple Retailers, Business in Sport & Leisure, Commer Group, Enterprise Inns, Foundation Group, Pubmaster, Regent Inns, Unique Pub Company and Whitbread plc. For further information please contact Kate Nicholls, Northern Lights Communications (020 7793 4119 or 0958 796 238)

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ubs are being crippled by the spiralling costs of red tape, says a new report published 25th September at the Pub and Bar Show at Kensington’s Olympia. Tenants are struggling to cope with increasingly complex regulation and 1 in 5 fear that they may become uncompetitive in the market place as a result. The report was published at the launch of a new campaign by The Red Tape Group, set up by leading trade figures earlier this year. Members include representatives of the 45,000 independent small businesses which make up the UK pub trade. The Group aims to tackle the Government over the effects of excessive legislation on pubs and has carried out extensive research amongst tenants and licensees designed to identify their most pressing issues of concern. Launching the anti-red tape campaign earlier today, Peter Salussolia, a Spokesman for the Group, and chairman of his own growing company, said: “High levels of regulation

The Magazine of the Institute of Licensed Trade Stock Auditors

ISSN 1471-0471

The Magazine of the Institute of Licensed Trade Stock Auditors

Editor’s View

Chris Swift

elcome to this, the eighteenth issue of the Stock Auditor. As ever the lack of response from members is to say the least disheartening. Last year in Folkestone members indicated that they wanted the magazine to increase to twelve pages. However if we do not have any more copy from you we may have to reduce down to eight pages again. Our lead story is a subject close to my heart – red tape. We are living in a nanny state where common sense has been stifled and paperwork has replaced it. For instance in the old days when you opened a refrigerator you would check the temperature without thinking, now you have to fill in a form stating what the temperature is. I recently had to write of wasted food, as the refrigerator was faulty. The strange thing was that the temperature gauge was faulty and the staff had continued to fill in the chart as OK despite the smell of rotten food. There is a moral in that story somewhere. It is nice to see that other people see the futility of such measures. It is now a full time job in each business keeping abreast of the ever-increasing bureaucracy. We are continuing to get experts to write articles on their ancillary roles within the licensed trade. This month Stockade and Brulines give an insight into how they can help our clients achieve better results. Dave Ganney, a member from Surrey, writes to disagree with our leading article from last month. Please do feel free to voice your opinions – this is what the magazine is there for. I make no excuse for advertising next year’s AGM so early. For those who have not attended one I would thoroughly recommend coming along. This year the hotel is of an excellent standard and promises to be an enjoyable weekend. Most of us operate by ourselves and is good to meet once a year and meet other stock auditors. Make a date in your diary now for mid May. Finally I would like to thank our stalwarts. Trevor Knight visits Okell’s Brewery on the Isle of Man. The last time I was on the Island was in 1987 to see the Rugby League Charity Cup sponsored by Okell’s. From what I remember it was an excellent pint. David Barnett a.k.a. The Flying Stocktaker writes about his latest escapades whilst Jim Bowman-Smith sends in some snippets that have caught his eye. All in all I feel that again it is an interesting read but please do remember that we do require more copy from yourselves.

White Horse Press Ltd 65-67 John Wilson Business Park Chestfield Whitstable Kent CT5 3QT

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All Subscriptions payable in advance. Published 12 times per year post free: Annual subscription £24 ISSN 1471-0471 © Institute of Licensed Trade Stock Auditors, 2000

by Bruce Thompson

regulations currently threatening our rural pubs. Over the last year licensees have been hit by the working time directive, improved employment rights, minimum wage, anti discrimination legislation, rules concerning genetically modified food, tax self assessment deadlines and new rules on rates appeals. There are 45,000 pubs in the U.K. run by individual licensees and this ongoing red tape and bureaucracy is strangling and confusing them. The Red Tape Group will unveiled a number of proposed solutions to the problem at its launch on September 25th at The Publican Newspapers Pub & Bar show at London’s Olympia. With Chris Swift, editor of this magazine, I spent two days searching for a hotel suitable for our AGM in the Lake District; this venue was selected by the members at the recent meeting, and eventually found The Derwentwater in the lovely village of Portinscale, just outside Keswick. The quality will be better than we have experienced in recent years, but the price too has slightly increased. Overlooking the lake, this venue will be one of the best we have ever had, and taking into account what we are getting, it is fantastic value, so with a fairly central location I do hope that you will all consider coming, even if only for the day. Having visited or contacted numerous hotels, some wanting £200 or more for the weekend, it demonstrates how hard it is to find a suitable venue at the right price. We stayed at The Skelwith Bridge, between Ambleside and Coniston, which was superb, and reasonable in price. Alas it’s not big enough for the AGM but the perfect venue for those of you wanting a few days away. A information about the 2001 AGM will appear in this and future magazines. I was quite amazed to hear that the ‘Twobicle’ has now been introduced to ladies loos. The partition has been removed so that female customers can carry on a conversation while answering the call of nature. It does seem a little bizarre to me, but perhaps I’m old fashioned in my outlook. Men have had adjoining stalls for years, and according to the ladies they have

no problem with what staged out as a promotional gimmick and is now on trial in Manchester, Glasgow, Coventry and Kingston on Thames. The intention is there to expand the scheme. While on the somewhat delicate subject of loos, do they not tell us an awful lot about a pub, about the clientele, about the management and even on the standards of hygiene within the premises. They must be spotlessly clean all the time and this reflects on well run premises. Jack Straw, the Home Secretary, has knocked plans on the head for a National ID Scheme. He believes that a scheme to include all adults would be both unnecessary and expensive, but he does intend to use youth cards in conjunction with new laws making licensees responsible for checking the age of customers so as to stamp out underage drinking. Though likely to disappoint some, Jack Straw has agreed to work with the trade and schools so as to ensure that young people have access to ID cards. The Home Secretary has refused to say when legislation will be possible, but in are exclusive interview with ‘The Publican’ outlined his vision for the future he has of pubs and summarises as follows: Reducing disorder Simplified licensing Local accountability Reducing bureaucracy Tackling underage sales Flexible hours One of our members contacted me this week with an interesting dilemma. On producing a result he showed a surplus of £800 and was promptly asked by the tenant to reduce the closing stock by a similar amount so that he could take that money out of the business prior to the next stocktake without making any impact on the result. I would like to know if any members have come across this before and also what their reactions would be to such a request.

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write this whilst having an enforced day off - not something I wanted, but having had some sympathy for the reasons behind this protest, I am now annoyed that I can’t service my clients in the way they expect and in the manner I want. Petrol is essential to our business and, though expensive is a must, so why do others have the right to prevent my getting to clients? It is not just the fact that one has days during which they can do very little, but re-scheduling becomes extremely difficult and could have a knock-on effect for several months. As for Esso putting up their prices on the day when things looked liked getting better, though be it with a very quick retraction, I make no comment. Petrol is extremely expensive in this country and does need to be substantially reduced in price, but lets do it in such a way that the public can get on with their work. The TUC have called for a massive hike in the minimum wage and have incensed drinks industry bosses and Licensed Trade leaders who say this will be the final straw for so many publicans already suffering from increasing costs and declining trade. Their call for an income of up to £5 an hour (currently £3.60 rising to £3.70 in October) will have a huge impact on rural pubs. One of the best quotes I’ve seen concerning this is from Tony Payne, Chief Executive of the FLVA who said “If the TUC want a policy for mass unemployment then so be it!” John Monks, General Secretary of the TUC also wants the introduction of a minimum wage for 16/ 17 year olds and the full rate implemented at 18, not 21, as at present. I was pleased to read in a recent issue of The Publican that Nick Bish, Chief Executive of ‘The Association of Licensed Multiple Retailers’ is the brain child behind a Red Tape Group which has been set up by Trade Leaders to tackle the government over the effects of excessive legislation on pubs. These are still early days says Nick Bish and it is too soon to say how effective the scheme has been so far, but one meeting has already been held with a key department within the cabinet to discuss the best way of lessening the burden of

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SECRETARY’S CORNER

The Magazine of the Institute of Licensed Trade Stock Auditors

NEWS ROUND UP Should a hotel charge for car parking? When booking a double room in the four-star hotel costing £126 per night, the gentleman asked if they had car parking facilities. Yes, he was told, they had 100 spaces at a cost of £2 per day. Seemingly many large city centre hotels do. In fact some charge as much as £15 per night, although this includes cleaning. The Scottish Tourist Board said it was a business decision for individual hoteliers to make. Guinness Stout Sales of the famous drink are 3% down and the sales are also falling in Ireland. Guinness has been brewed for 241 years. Arthur Guinness & Co. is looking at lager companies to purchase in an effort to keep up net profit. The family home in Farmleigh, a 23,000 acre estate in Suffolk was bought by the Irish government for £23 million. 24 hour opening for pubs A movement to allow pubs to remain

open around the clock has been made. The first 24-hour pub in Britain came a step closer when council leaders in Edinburgh said they were ready to support the idea. Bars have enjoyed extended licensing hours especially during the festive fringe. The police chiefs say there are benefits from the extended opening hours. 1. People are making their own choices when to stop drinking and leave. 2. No problem of having hundreds of people on the street when pubs close at a precise time. There are some fears of course. 1. People might drink themselves under the table. 2. People in such a state could create violence. 3. Local residents are wary of such a change. Submitted by Jim Bowen-Smith

News from the Pub and Bar Show Olympia 25 to 27 September

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A few exhibits were of direct interest to Stock Auditors and brief assessments of some are included below. No doubt more detailed information will be available in future issues of Stock Auditor. Brulines, whose EDIS system is featured in this issue announced their “Smart Door”. Previously Brulines would download dispense data and prepare exception reports for the licensee and pub operator. With “Smart Door” licensees can now directly access and print out real time dispense information. Tel: 01642 358800 Linburn Technology demonstrated a prototype instrument for gauging the contents of partly filled bottles. The contents of bottles either upright or in optics can be measured. The instrument reads the bar code on the bottle to identify the product and bottle shape and then measures the exact quantity and sends the information to a laptop by radio technology. Tel: 01383 820880 Dine-o-Quick (UK) Ltd revealed among several products a revolutionary epos system which uses a bar code reading “gun” which reads the product code, the price code and reduces serving times by up to 40%. They are claiming comprehensive information and increased security. Tel 01702 344401 SDI based in Northern Ireland introduced a new beer line cleaning system which it is claimed can reduce cleaning times and losses. Tel: 028 94429442 Not related to stocktaking but this writer could not resist trying the Boru vodka which is distilled in the west of Ireland. not a traditional centre for vodka production, but surprisingly smooth. Tel: 01799 506624

Letters SIR - Your two articles from our Chairman and Secretary in the September issue of Stock Auditor amaze me. “A warning to all stock auditors” is presumptuous in the extreme or does Steve Berry assume that most stock auditors and their clients are stupid. Gross profit and cash profit are different and it should be seen that by increasing vodka, bacardi and gin measures, which are products in growth at this time, then turnover could well increase at the sacrifice of gross margin. It follows and makes perfect sense as well as being a legal requirement that if you adopt 35ml as the dispense size then the whole range should be dispensed in the same manner. His reference to “All professional stock auditors” assumes to me that those who disagree are not professional. Sorry, Steve I disagree with your article, and I am a trade consultant, who has been involved with stocktaking since 1972 and I think I know my industry and my business. Gross profit is important but not everything to a successful businessman. I am reminded of “give and you shall receive”, from my Sunday school days and it is still very true. Very true that customers will only drink what they can a. afford and b. what they consider is within their capacity. However suppose they could attract a few more customers. Bruce refers in his article to “the small pub more likely going out of business.” In my opinion the small pub where the tenant goes out of business and the brewer is obliged to sell the premises to a freeholder will always survive – some modern multiple groups have grown from this very base. Working with a brewer and paying him a rent is no different from taking a mortgage (bank loan) and repaying this to the bank. A tenancy or lease should in the majority of cases be a better option than an ex tenancy freehold, it will often be better located. Bruce, didn’t you promote the work of a particular buying group recently? I regret that I can’t find the article now, and through this very method the single tenant with freedom to purchase some of his products can improve his profitability. Nobody is too small to attract a decent discount – sorry to take issue with you. It doesn’t end there for they can get deals on food, gas and electricity, toilet services, waste disposal. Insurance, rating arbitration and I could find many others. Finally, J.D.Wetherspoon – Tim Martin has done many publicans a favour, the dirty old soak brigade once so common with their cider quarts seem to have found a pleasant environment to get cheap drinks. Their behaviour was detrimental to many other town centre pubs and now they have gone thanks to J.D.W. In summary, all licensees need to review carefully and constantly what is best for them. They need to grow their business from the opportunity they have. They need to invest time and money into the décor and the fabric of their premises. They need to train their staff in product knowledge and selling skills, and above all else they should be good to their customers for without them they have nothing. Thanks for waking me up by 2 stimulating articles. David Ganney MILSA FBII

By Eric Woolley

The system will need to “know” for each location what has been received in terms of goods and what has been sold. An ongoing calculation for each location will maintain calculated quantities and values of stock in hand, adding goods inwards and deducting items sold as transactions are recorded. Good software will also provide for items being transferred between locations if the business has more than one operational unit. Ordering and Receiving procedures in a wellwritten software package will be extremely time effective, probably employing retained lists for ordering purposes and/or various top-up possibilities. It is interesting to consider the proposition that the efficiency of computer based systems has actually transformed the cost-benefit situation in respect of stock control.. What used to be an expensive procedure in relation to possible benefits is now a demonstrably viable option because of reductions in staff time taken. The stock audit procedure in essence has three phases: collect data; process data and report results. EPoS systems contribute greatly to the first phase in that they will record individual sales by item, often with date and time of sale. The associated back office component will do the same job for purchases, collecting a comprehensive and very detailed record of stock movements by item and by date. The process of Stocktaking can benefit significantly from the use of handheld devices with built-in barcode readers. Given barcode labels in the cellar and a suitable set up in the software, the recording of stock in hand can be speeded up considerably. Data collected on the handheld can be transferred electronically to the main computer system without the need to rekey. Even without barcodes, the use of handheld units can still be very effective – you can identify items by their stock codes, key in the quantities on the handheld and do the

transfer to the main system in exactly the same way. The quality of data processing will depend entirely upon the standard of the software in use. Most certainly, the software will need to relate purchase units to sales units (barrels to pints, for example). Recipes for cocktails, shandies etc. will need to be exploded into ingredients so that calculated stocks can be decremented. Invoice prices will need to have been entered and account taken of any Goods Received Not Invoiced. The data from the last stocktake will need to have been retained within the system and the data for the current stocktake accepted – possibly by importing from a handheld unit. Computer based systems in general are good at collecting data, excellent at processing the data (doing the calculations etc.) and absolutely phenomenal, if properly programmed, at presenting the final information. The standard reports which we used to do with calculator and typewriter and nowadays produce from our spreadsheets will be output from a well written back office package in a couple of minutes. Relevant data will be saved for next time and any special requirements (the client may want year to date figures, for example) can be accommodated. Surplus/deficit and gross profits, both theoretical and actual, will appear without effort. In essence, the system can produce any information in any preferred format just so long as it has the base data on which to work. The point about the EPoS link and the back office software is that all of the relevant data has been efficiently and effectively captured and so becomes available for efficient and effective processing and reporting. Eric Woolley is Managing Director of Datasym (UK) Ltd. His company produce the Stockade software which operates in conjunction with the TEC range of Point of Sale equipment.

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lectronic Point of Sale (EPoS) equipment has been around for some time now with the licensed trades being well in the forefront of its development and use. Strictly speaking, EPoS is usually taken to refer to the situation where the point of sale device is actually a computer terminal; part of a computer network. For practical purposes in the present context, however, we may include electronic cash registers (ECRs) which perform many of the same functions including the ability to be linked to a network. The most important difference between the two is that the EPoS system is “on line.” This enables the user to look at point of sale activity in real time, perhaps via another terminal on the network and to make changes to prices, messages etc. on an on-line basis. For the ECR, these possibilities are more limited. Both approaches have the overriding advantage from the stock audit point of view that sales data becomes available for computer analysis either as part of the process (where the computer is host to the EPoS network) or via an upload procedure. The two important points here are firstly that detailed sales data is collected and secondly that “back office “ software is brought to bear. Some larger companies have their own in-house software for this purpose. The independent practitioner has access to a range of commercial products of which the author’s own company offers an eminent example. In a true EPoS situation, the back office software would simply be installed on the network along with the “front end” – the routines which handle the displays and processes at the point of sale. Where ECRs are in use, the system would need to include direct cable or modem links for the periodic uploading of data. The computer end of the system will need to be set up with items and their unit of purchase and sale; VAT levels identified and locations configured.

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EPoS Systems and the Stock Auditor

The Magazine of the Institute of Licensed Trade Stock Auditors

AGM 2001 The 48th Annual General Meeting 11th and 12th May 2001

t the AGM, in Folkstone the membership decided to visit the English Lakes. We had to find a hotel that was big enough but at the right price. As the Lakes are busy throughout the year it was very difficult to obtain discounts and to keep within the budget as set for the last few years. We have therefore had to accept a small increase - around £140. This increase is entirely justifiable as the rooms are decorated to a high standard and the restaurant enjoys an excellent reputation in the locality. The hotel overlooks the picturesque Derwent Water and the first people to book will be allocated rooms overlooking the lake. In another departure from the ‘norm’ the actual AGM will be held in the nearby village hall. Put a note in your diary today , do not miss this weekend. The hotel itself is in a picturesque and unspoilt part of Lakeland which is complemented by the hotel’s ground - 16 acres of gardens and water meadows, most of which is dedicated to the preservation of local wildlife. For some years now, the owners of the Derwentwater Hotel have worked alongside English Nature towards enhancing an extensive area of wetland into a natural but protected habitat for birds, mammals and deer. By laying stepping stones, planting trees and introducing special feeders for different species of wildlife, the area has become a safe and natural haven for hundreds of different

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creatures. It is delightful to sit in the comfort of the hotel’s large conservatory and watch red squirrels, mallards, hedgehogs and pheasants foraging for food. Cross the well tended lawns to a footpath which skirts an avenue of rhododendron bushes and leads you down towards the lake. Here you’ll pass a pond which is home to numerous breeds of noisy water fowl, frogs and insects and if you are vigilant, you may see a family of timid roe deer hiding in the undergrowth. The quest rooms, each of which is en-suite with a bath and shower, have a high specification of furnishings including a television, hairdryer, trouser press, direct dial telephone and hospitality trays. Most rooms enjoy stunning views of the lake and those rooms that don’t face onto the lake overlook a quiet lane with woodland and mountains beyond. It sounds idyllic so do not miss the chance to attend next years AGM in one of the most beautiful parts of the UK.

Two views of the front of the hotel

The Conservatory

The well stocked bar

A typical bedroom

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The Garden

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The Derwentwater Hotel

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EDIS PROVES ITS WORTH I

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system which they initially took on trial.” not only of use by the company, but also by the n 1995, North East company Brulines Ltd. tenants who used it to prove trade levels and introduced to the licensing trade the Electronic Leslie Gledhill, Operations Director of Pennant identify staff theft and product loss through cellar Draught Information System (EDIS). The system, Inns said: “Brulines offered a competitive service technical problems. which is designed to accurately monitor volumes and a package to Pennant Inns which satisfied of products dispensed through, fonts in pubs and our requirements for accurate and speedy Armed with the information, Heritage was able clubs, was bought by many of the larger pub information on volume dispense. The information to begin to use EDIS as a management tool, chains and widely installed throughout the UK. has been invaluable in assisting us to determine particularly in order to identify quiet times and a fair rent policy and to help our tenants to focus trading patterns. Both the company and tenants Brulines recognised that many smaller operators their promotional events by providing product and were then able to take action to improve trade preferred initially to rent the system in order to sales information in a format they can something that is of benefit to both parties. After trial it. The company decided to instigate a rental understand”. determining the full value of the system, Heritage package for clients that will allow them to test elected to install EDIS across the entire estate to the system and have its value proven to them. Both John Finney, Managing Director and David provide full dispense information to use primarily For less than £500 an operator can evaluate EDIS Harrison, Financial Director at Heritage were as a management tool to assist in maximising the over three months and then choose to continue keen to commit to acquiring EDIS. David trade across the estate. renting, to purchase or to have EDIS removed. commented: “At Heritage we recognised the The management team at Brulines is confident value of EDIS when we initially rented the Rather than rent the systems, Heritage decided that once an operator installs EDIS on a rental system. We decided to go ahead and buy the to buy over 40 units to cover all their pubs. In basis for minimal system, placing it in our capital expenditure and entire estate. We intend to has the value of the use the system as a key system demonstrated in element of our management situ, the majority will information system. Our choose the purchase business development option. managers are able to access up to the minute data quickly This confidence has and easily the benefits of proved to be well having that kind of founded - to date no information at your rental customer has ever fingertips are enormous. It returned a system, and helps to address the many have bought opportunities rather than EDIS. Recently two focus on the negatives - this more pub operators helps develop the have announced the relationships with our move from rental into tenants.” purchase. Pennant Inns, a London based How EDIS works operator and the EDIS works by monitoring Heritage Pub Company every half-pint being in Derby have both dispensed from each font. made the move, but for The heart of the very different reasons. sophisticated computer Pennant Inns was Left to Right - Simon Collin, Customer Services Director, Derrick Collin, Managing Director system is a motherboard formed in 1998 with an and Stephen Mather, Sales and Marketing director with the Brulines EDIS system on-site that can be accessed initial estate of 120 pubs from anywhere - even via a laptop computer and addition the units will be installed into all newly and in 1999 this increased to approximately 400. mobile phone. Detailed reports can be produced acquired pubs as a matter of course. Heritage is The company was aware of problems relating to in-house, or by Brulines on: only the second of Brulines’ customers to use inaccurate barrelage information and, to find out • Volumes dispensed against volumes delivered EDIS in 100% of their estate. the extent of the possible problems, installed 20 • Line cleaning status Stephen Mather, Sales and Marketing Director EDIS systems on a rental basis at Brulines is delighted with the two new orders. • Volumes through each font and bar location The EDIS installations in the Pennant Estate He said: “The decision of both these operators, showed that barrelage had previously not been • Cumulative sales by hour, day, week, month or for very different reasons, to change from renting captured and there was uplift in recorded year EDIS to buying it on a large scale proves that the volumes. Now the company has seen the value • Promotional activity - as it happens industry is seeing the benefits the system can of EDIS, they have decided to buy 150 systems. EDIS gives operators a level of control that in bring. The value of the system is not only as a Pennant is now using the system to produce turn improves unit profitability through more `policing tool’ but more importantly as a information on trading patterns which helps them efficient estate management. The ultimate result management information tool that allows to set fair rents and assist tenants to monitor their is increased overall profitability and estate worth. operators to develop their estates. business. Through support from the Brulines data The key attribute in the success of EDIS is that it “Pennant Inns used EDIS to provide accurate management team, Pennant is now using EDIS has been designed by pub operators for pub information as a management tool. Heritage as an essential business tool. operators. adopted the system as an integral part of their The Heritage Pub Company took three systems In December 1999 Brulines entered into a management information process together with on rental last April. The company was keen to reverse take-over of Comprehensive Business eliminating the suspicion of buying out. test the system to ensure any temptation to break Services plc, a company listed on the Alternative “EDIS is proving invaluable to operators and I purchasing agreements was minimised, and to Investment Market (AIM). The move is a think that this is clearly demonstrated by the determine trading patterns in the pubs. The green-light for expansion - the aim is to treble commitment of both Pennant and Heritage to the systems generated dispense information that was the workforce within 18 months.

Finally Chris realised I had not answered his questions so you now have my mixture of factual and tongue in cheek answers. Your first job was? Laboratory Assistant. How much was your first pay packet? Less than £5 per week. You’re best subject at school? Science. If you weren’t a stock auditor what would you like to do? I don’t know how to answer this as I am not a stock auditor. But how about the Queen’s second son? No training to be King but all the advantages of royalty! What is your favourite time of day and why? When I am in good company. What was your worst mistake (be honest)? Thinking about 25 years ago I could play golf. Name one person you would most like to have dinner with and why? Mike Murdoch if he will choose the wine (and pay for it!). Your favourite place is? See the ideal day below.. What is your biggest fear? Heights. Who in the licensed trade do you admire most? George, the landlord of the Dolphin in Betchworth is pretty impressive. If you have to admit to having a fault what would it be? Impatience. What is your favourite book? One that stays open at the page I was reading. Your favourite film? Usually the next one until I’ve seen it. What is your top time saving tip? Procrastination. What makes you really angry? People who don’t agree with me. What or who could you not live without? A sense of humour . What do you spend most money on? The Inland Revenue. What is the best devise or gadget that you have ever bought? A Swiss Army knife. What would be the ideal day away from the office? Anywhere with good friends, good food and a decent bottle of wine. What is the most overrated virtue? Patience. What advise would you give anyone starting out as a stock auditor today? The same as any other job – be determined to succeed. As Prime Minister what would be your first task? Keep government out of business. What attributes do you think make a good stock auditor? Numeracy and tenacity. What is the highest compliment you have been paid? Won’t you come and sit next to me. Finally what would you like your epitaph to be? He was alright in spite of the silly jokes.

CROSSWORD

A bottle of Scotch to the first correct answer pulled on 26th October from among those sent to:-

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Rosemary Cottage Green Leas Chestfield Kent CT5 3JY

Across 1. A kind of crossword clue. 4. Muddled sober clothes. 8. Not an American soldier confused the bar. 9. This dancing with direction gives Stock Auditors tools. 10. TLA is a three letter one! 11. This letter contains a key. 12. Stock auditors visit this obstacle. 14. Is doubling for a Goddess. 15. A headless twin was rapt. 18. Glue reverses the face. 21. Bay note included tot. 23. A detective inspector put some fatty tissue. 25. A prohibition fellow leave. 26. A muddles ethos them there. 27. Did the muddled conjunction and the church lead a merry one? 28. To the point and a point for fried potatoes. Down 1. A new mail distorted the beast. Answers to September Crossword 2. Respects greetings. 3. Amass tin aligned for ungodly worship. 4. Ready matured. 5. Arranges the paperbacks. 6. Quarter year stalk for organisation. 7. A product with bare head probe. 13. Or a triad dispersed a discharger. 16. Ore duos made fragrant. 17. A table to be on a ship? 19. Against the heart compensations. 20. The merest change to measures. 22. It’s second rate precipitation mind. 24. Border end.

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An Audience with Alec Crighton

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FLYING STOCKTAKER UPDATE Dinard for lunch

reetings again from sunny Wales and where does the time go? Probably like many of you, I manage to get a break about as often as the Government keeps an election pledge. Anyway, promises or not, I recently took a holiday in Jersey to visit my daughter Louise who has been working there since spring last year and loves the island. I was well overdue an entry in the logbook so hoping for good weather booked a Piper Warrior from Jersey Aero Club for midweek to take Louise flying. I need not have worried, it was hot, sunny and clear every single day, perfect for flying. We popped in to the club the day before to check the booking and met instructor, James. I explained I was a bit rusty and if James did the nav and radio, lunch at Dinard in France was on me which seemed to clinch it. We departed Jersey as 12.55 and settled down – or should that be up – to 1000ft and aimed for France. Unlike some older aircraft I have flown, hotel bravo was relatively new with a reassuring ‘firm’feel to the controls which I think contributed to my maintaining our height as if the altimeter needle was painted on the dial as they say. Approaching the French coast, I was a bit surprised to hear the Dinard controller communicating with French pilots in their own tongue, although he did of course respond to us in English, which I had believed to be the international language for all aviation. You can learn something new every day. After a 40 minute scenic flight we landed at Dinard, on final approach I kept 70 knots landing speed and right on centre line but did flare a bit early so James blipped the throttle helping me to land smoothly, well alright then, smoothly-ish. (Remember the rust?) The tower directed us to parking then we made our way over to pay our dues and what do you know? I guess it could only happen in France. We go to the office and Hello where is everyone. Yes, the laid back froggies had all buggered off to lunch!! Customs, as well. Now how can you pay your landing fee if there’s no one there to take your dosh and was I complaining? Next through flight crew entrance, three of us clutching passports, that was also deserted so we just went through the airport concourse up to the new restaurant for a bite to eat. The service seemed so slow I thought of asking for a table near a waitress. We eventually settled for baguettes and drinks.

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Looking out at the Warrior the big decision is shall we depart now or have another coffee? Unlike all the non-flyers who were now being summoned to board a Ryan Air jet we could make up our own timetable as we went which is one of the privileges of private aviation. There we were after lunch, refuelled, (us, not the plane) and still no sign of customs so we got

Gorey Castle - Jersey takeoff clearance and departed for Jersey, this time at 2000ft. My landing back at Jersey – unassisted this time – was an improvement on the one at Dinard I am pleased to say, and thanks to James it was a very enjoyable and safe trip. Now I know this channel-hop hardly compares with last years 700 mile Florida sortie to Key West, but after not flying for so long that old familiar smile-on-your-face full throttle feeling as you rotate and take off makes a trip anywhere worth waiting for. I can quite see how Louise has taken to the lifestyle in Jersey. It grows on you very rapidly and I don’t know anywhere else quite like it, except perhaps Florida, but then we are not comparing apples with apples are we. And to think some of our members actually live and work in the Channel Islands all the time … I wish.

time for the nightly prayer meeting at the Red Dragon. Ta ta for now. Dave Barnett. P.S. The day before dispatching this small contribution to Chris I had travelled to do a job in North Wales and due to the very current fuel crisis did not see a single garage with lead free fuel on offer. Most of them were closed anyway. With a view to conserving what remained in the tank, I drove to my first job this morning at under 50 m.p.h. Not intentionally keeping to the speed but rather keeping a very, very light foot on the gas. O.K. it did take a bit longer but upon returning I swear the needle had not moved on the fuel gauge!! Makes you think doesn’t it? Flyingstocktaker@callnetuk.com

Did you know? …….. Scientists have discovered that beer contains minute traces of female hormones. Tests were carried out on 50 men who were each given 14 pints of beer. The result was that 100% of them talked excessively without making sense, gained weight, became emotional and couldn’t drive. Just for balance:

chauvinistic

When God made man ………She was only joking! Well it’s almost 10 now and

BROKERS! DO YOU FIND DIFFICULTY IN PLACING LOANS FOR SHORT LEASEHOLD RETAIL BUSINESSES? We lend money excusively on Leasehold Businesses including Pubs, Restaurants, Cafes, Wine Bars, Fish & Chip Shops, Take-Aways, Post Office Stores etc. For Purchase or Refinance Call us today Fir st Mer chant Finance Plc First Merc 74 W igmor e St., London W1H 9DL igmore TEL: 020 7935 1602 FAX: 020 7487 4750

WEB SIGHT OF THE MONTH

You read about Scotch in the September issue of Stock Auditor. This month go to www.jackdaniels.com to learn about this famous bourbon at an excellent, comprehensive and informative web site

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Clockwise from above Prior to landing at Jersey The control tower at Dinard Hotel Bravo parked at Dinard

Unique Business Opportunity Franchise Area for Sale in South Yorkshire

Interested parties must be able to demonstrate an extensive career background in, and understanding of, the control aspects of the Hotel, Restaurant and Licensed industries. They should have stocktaking experience and preferably specialist professional stocktaking qualifications. The Franchise could be split to advantage. For further details, business profile etc. - Contact in writing, with full C.V. to: Mr. R. WEBSDELL Stockcheck Ltd, 3-4 Slaid Hill Court, Wike Ridge Lane, Shadwell, Leeds LS17 8TJ

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One of our most prestigious and profitable Franchises is offered for Sale as an ongoing concern, with a solid blue chip client base in a healthy growth situation. The business is ripe for further development in line with the demand for our services in the area.

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The Breweries of Britain A Series by Trevor Knight Part Nineteen

OKELLS - ISLE OF MAN T

he beautiful and tranquil Isle of Man, set in the Irish Sea, measures just 33 miles by 13. There are many miles of secluded beaches and in the south, between Douglas and Castletown, there are hidden coves between towering cliffs. Inland, the countryside is gentle on the eye but further north and west it is more rugged. From the island’s highest point, Snaefell, which is over 2,000 feet high, it is said that seven kingdoms can be seen. The Isle of Man, England, Wales, Scotland, Ireland, the sea, and, on a clear day, the ‘Kingdom of Heaven’.

gifted the island with the legacy of their lifetime. The evidence of these earlier settlers can be seen in the Celtic crosses, medieval fortresses and Viking burial grounds all over the island.

in Victorian times was common practice. It was not long before the capacity of Dr. Okell’s first brewery was insufficient to supply all his outlets, so he set about building a new brewery.

Many centuries later the Victorians discovered the island and they too left their mark for all to enjoy. Impressive architecture, electric and steam railways, the world’s largest operational waterwheel and a magnificently restored theatre in the island’s capital, Douglas.

The new brewery was built in 1874, at a place called Glen Falcon, which in those days was a green field site on the edge of Douglas. Dr. Okell was a scientific gentleman and his model brewery was very advanced for its time. He actually wrote a book on the brewing process, the original hand-written edition of which is still in the possession of Okell’s Brewery.

Douglas, the most popular of the island’s resorts, has The Isle of Man is a unique a continental atmosphere. place with over 10,000 years There are fine hotels on the of history. It has its own laws, promenade of the spacious taxes, stamps and native two-mile sea front. Police tongue. The Manx language; in white helmets direct the a form of Celtic; is traffic, and old fashioned experiencing a resurgence of horse-drawn trams trundle interest as can be seen all over gently along. On Prospect the island in road signs and Hill stands the House of place names. Keys, home of Tynwald Parliament. The The Isle of Man is one of the Scandinavian origins of smallest independent The Manx National Emblem the parliament are sovereign countries under the contained in the Manx Crown. It was annexed by National Museum along with many relics of the England in the 13th. century and is ruled by a island’s heritage. In Noble’s Park, the tail-less Lieutenant Governor appointed by the Crown, Manx cat is bred to preserve the species. but has its own parliament, Tynwald. Tynwald which is the longest continuous parliament in the world, first met in the year 979 AD. The flag and national emblem of the island shows the three legs of Mann and the adage that goes with this is; QUOCUNQUE JECERIS STABIT, or in English, ‘whichever way you throw me I will stand’. The ancient Celts, Vikings and Christians have

Dr. William Okell - ‘a scientific gentleman’ In 1850, Dr. William Okell, a surgeon from Cheshire, opened the first Okell’s Brewery at Castle Hill in Douglas. During the next few years, Dr. Okell bought many of the pubs around the Isle of Man. Most of the pubs were brewing their own beer, which

The Manx Beer Purity Law Dr. Okell’s brewing process had to conform to the strict requirements of the Manx Beer Purity Law which was passed by Tynwald, the Government of the Isle of Man, in 1874. This stated that no other ingredients shall be used as a substitute for malt sugar or hops. The exact wording of the 1874 Act was:No brewer shall use in the brewing, making, mixing with, recovering or colouring, any beer, or any liquid made to resemble beer or have in his possession any copperas, Coculus Indicus, nux vomica, grains of paradise, Guinea pepper or opium, or any article, ingredient, or preparation whatever, for, or as a substitute for, malt or sugar or hops. The Falcon Steam Brewery Dr. Okell’s new brewery, which was called the Falcon Steam Brewery, was built to the specifications laid down in his book. Steam was used to boil the brewery coppers instead of the usual direct coal fire to prevent the charring and caramelisation of the sugars during the boiling process. This resulted in a cleaner tasting beer with no burnt flavours in the final beer.

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The Falcon Steam Brewery continued in production until 1994 when a brand new complex was designed and built at Kewaigue on the outskirts of Douglas. The dual-capacity, highly automated brewery has a capacity of 20,000 barrels, split equally between ale and lager. The core production consists of Okells Bitter, Okells Mild, Cooil Lager and Harp Irish Lager. In 1996, Okells Bitter won a bronze medal at the International Brewing Awards at Burton-on-Trent. Okells Bitter - ABV 3.7% A golden beer, malty and superbly hoppy in aroma, with a hint of honey. Rich and malty on the tongue, it has a wonderful, dry, malt and hop finish. A complex but rewarding beer.

Okells Mild - ABV 3.4% A genuine, well brewed mild ale, with a fine aroma of hops and crystal malt. Reddish brown in colour, this beer has a full malt flavour with surprising bitter hop notes and a hint of blackcurrants and oranges. Full, malty finish.

All the company’s 55 pubs an the Isle of Man sell traditional ale and more than 70 free trade outlets are also supplied direct.

ISSN 1471-0471

Number 19

November 2000

INTERBREW’S TAKEOVER OF BASS HITS PROBLEMS

he proposed takeover of Bass Brewing by the Belgian company, Interbrew has hit opposition from many quarters. The deal was first mentioned in the Stock Auditor in July 2000 but the matter is far from being cut and dried. The matter was referred to the EU but they appear to have passed the hot potato back to our Trade and Industry Secretary, Stephen Byers. Opposition has come from many unexpected sources. The ramifications of such a change are vast and are often not immediately obvious. For example Martyn Jones M.P. for Clywd South, which includes the former Wrexham brewery is calling for the bid to be thrown out. He explains that he sees a small chance for the brewery to be re-opened if Carlsberg Tetley is able to pick up one or two of the former Bass Brands. Wrexham lager is currently brewed under licence by Thwaites Brewery in Lancashire. A spokesman for Carlsberg Tetley said that it was extremely unlikely that the plant would be re-opened as it is considered too large a site. However there were tentative plans for a much smaller ‘heritage’ brewery to be built somewhere in North Wales.

If the purchase of Bass does go

Belgian beer drinkers are also against the purchase of Bass as they fear that Interbrew will put profit and mass production before local traditions. Interbrew has already bought up many small breweries in Belgium and has shut them down – Lamot is one such brewery for instance. De Kluis, the brewer of Hoegaarden was bought for its brands but

The Leuven brewery, flagship of Interbrew , was founded way back in the fourteenth century. This is where Stella Artois is brewed by just twenty four people in eight hour shifts – a computerised factory might be a better description. Interbrew itself was formed as recently as 1987. However the two breweries concerned, Piedboeuf dates back to 1853 and was based at Jupile whilst Artois had been brewed since 1717. More details of these and other Belgian Breweries can be found in the Stocktaker January 1997 and March 1997. Stella Artois is the company’s most well know product and is the leading premium lager in the UK

N o n brewing chains have always been able to use their purchasing power to secure good discounts but they have not abused this power by undercutting other licensees. If Bass, through Interbrew reduce discounts it would be interesting to see how long it was before CarlsbergTetley and Scottish Courage follow suite. It is surely no coincidence that no company wants to brew beer – they cannot make sufficient profit because of the high discounts being demanded. The chief executive of Punch Taverns, Hugh Osmond has referred the matter to the Office of Fair Trading. Bass and Whitbread between them would have 53% of beer distribution in the United Kingdom. As Scottish Courage have already declined to give the discounts demanded by Punch this only leaves Carlsberg Tetley as a supplier. Osmond has already indicated that he would deal directly with foreign suppliers if he found it necessary.

critics s a y t h a t Hoegaarden has lost its unique taste and has become just an ordinary beer. The Belgian equivalent of CAMRA, de odjectieve Bierproevers (O.B.P.) is an organisation fighting to maintain traditional beer styles in Belgium. Interbrew Facts

Interbrew globally owns more than one hundred and eighty brands and operates breweries in fourteen countries exporting to a further eighty countries. If the Bass purchase is successful Interbrew will have moved into second place behind the gigantic American brewer, Anheuser Busch, in volume terms. Stella Artois was first brewed in 1926 as a special Christmas drink and as many of you know Stella is Latin for star. Continued on page 5

Page

Interbrew is also accused of running an illegal cartel with another Belgian Company Alkein Maes in which Scottish and Newcastle have a significant interest. Scottish and Newcastle state that the alleged misdemeanours occurred between 1993 and 1998, which was before they purchased an interest. The two companies, if found guilty of illegal price fixing, face a fine of up to ten per cent of their turnover, a not altogether insignificant figure. Interbrew has stated that they will cooperate fully with any investigation.

ahead there may be one major effect. Large pub operating companies such as Punch and Wetherspoons would perhaps see a reduction in the discounts that they currently enjoy. This can only help to create a level playing field which in the long term will be to the Industry’s advantage.

Editor’s View

Chris Swift

he subject of Interbrew and the proposed takeover of Bass Brewing seems to be dominating the pages of the trade press these days. I must admit that I am fascinated as to how a company, formed as little as thirteen years ago, can have become the second largest brewery throughout the world, beaten only by the mighty Anheuser Busch. How’s that for growth? What is beyond doubt is that Interbrew will have a decisive impact on the British brewing industry – it can only be hoped that that influence will be for the better. Our leading article in the September issue certainly provoked a response. Frank McCartney put pen to paper and showed, what he considered, a more balanced response whilst I am pleased to say that UDV have agreed to put forward their case for the introduction of the larger 35ml. To conclude this particular discussion Steve Berry has replied to the letter that appeared in our last issue. It perhaps goes to show that there are many ways of looking at a certain situation. Jim Hughes continues his series of articles on VAT with an article on what to expect from a VAT visit and perhaps more importantly how to advise your clients to reduce the chances of such a visit. Remember that his expertise is available to you and your clients should the need arise. At a time when legislation and litigation is becoming more commonplace Poppleston Allen give advice to our membership on contentious subjects. Trevor Knight, this month, visits the Gales Brewery near Portsmouth in the latest in his ‘crawl’ around the breweries of Britain. No issue of the ‘Stock Auditor’ would be complete without these brewery visits. Another regular feature was the twenty questions but I have not received any contributions for the last two issues – I know Anton was a hard act to follow but please do let us have some completed questions. For those of you who are not members of the Institutes’ AA scheme details are given by George Giles on page 11. This year, sadly, we seem to have lost a lot of stalwart members of the Institute and unfortunately we have yet another obituary in this issue. Simon Askew who many of you saw at this year’s AGM in May sadly passed away in August. He will be sorely missed by those you knew him. Finally will someone please correctly complete one of Alec’s crosswords, at this rate the bottle of Scotch will be a 25 year old Malt.n

CHAIRMAN Steve Berry FILSA 15 Deanburn Walk Bo’ness West Lothian EH51 0NB Tel: 0131 477 2895 (Business) Tel: 01506 825227 (Home) Secretary & Treasurer Bruce Thompson FILSA MHCIMA BII 7 Comely Bank Place Edinburgh EH4 1DT Tel: 0131 315 2600 Fax: 0131 315 4346 ADMINISTRATION Gina Pugalis

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All Subscriptions payable in advance. Published 12 times per year post free: Annual subscription £24 ISSN 1471-0471 © Institute of Licensed Trade Stock Auditors, 2000

This magazine is published by the Institute of Licensed Trade Stock Auditors. Whilst welcoming any contributions, the editor reserves the right to alter or amend them if necessary. Any opinions expressed are not necessarily those of the Council and are accepted only on that understanding. No part of this magazine may be reproduced or transmitted without written permission of the publishers.

SECRETARY’S CORNER

by Bruce Thompson

s I sit in our old haunt, the Craiglands Hotel in Ilkley, Yorkshire, having conducted yet another training seminar, an independent one for a small company, our own and two sets of examinations, I have been pondering over the future of this Institute and trying to establish the way forward. We are of course successful and have well and truly set our work within the licensed Trade, but we must move forward, continue to satisfy the demands of our membership and give real purpose behind their remaining members. We have to appeal to every stock auditor in the country and make them want to be members. We must look at the examinations, change them if necessary to suit the growing tide towards computerisation. We must force ourselves on Customs & Excise, make them understand what we are all about and encourage The Inland Revenue, who already consider us as experts, to use the advice of Institute members when conducting enquiries within the Licensed trade. Our members have a huge volume of expertise and knowledge, and this should be utilised by the authoritative bodies. Our biggest restraints are time and money. We have the skills and acumen to create a hugely successful organisation, one which will get total recognition from the licensed trade, obtain numerous enquiries for work, one which any practising stocktaker could not find work without, one representing the trade at government level and sought by journalists for its views. There is so much that we could do both for our own members and for licensees in general and we want to surge forward and achieve these ambitions. We will, and had I written this feature some years ago, I would not then have dreamt of our having achieved as much as we have over a few years.

Council are very conscious that this is no longer the case. This is very much the way forward and everything is being done to progress our page as quickly as possible. The delay is caused by our having been let down by a third party, but alternative action is now being taken. Once on line all our qualified members will be linked and the various services available displayed. Training courses will feature, as will the merits of using qualified stock auditors. I am optimistic that it will be beneficial to all. The delay in producing it is unacceptable and we are now applying pressure to complete this very important part of our advancement. We are bringing considerable expertise into the Institute and as well as having Alec Crighton as our marketing man, we are delighted that Jim Hughes has joined the fold. He is an expert on VAT, a subject very close to our hearts these days. Jim has kindly offered to help members free of charge who phone him with queries, but any further work naturally will be chargeable. Having these experts available to us is of invaluable help to members and a side we will build on as and when the opportunities arise. With Pat Simmons and John Tandy, I am just finishing what can only be regarded as another very successful training seminar. Not running to capacity, but very interactive, the delegates are all complimentary and enthusiastic about their future. Some only want more knowledge to run their own pubs, but others do intend setting up their own businesses. These courses, run each March and October are very comprehensive, they run for five days and include four nights accommodation, giving delegates a thorough grounding of the profession. Naturally we can’t make them into qualified stocktakers in that time, but at least it teaches them how to take stock properly right from the beginning and also acts as a good learning basis prior to taking the exam. Long may these courses continue as they are an integral part of our future, that future which we are all working to achieve and which will give our members, one day, exclusivity in the stock auditing profession.n

The next Training course will take place from 15th to 19th March 2001 at Ilkley Contact the Secretary for details

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Modern technology has spiralled in the final decade of the last century. We have endeavoured to keep up with it, not always successfully, but at least we have tried and achieved a lot. With E-Mail, modems and Web sites there has been a lot to progress and indeed monitor on a regular basis. The

curse of modern life ‘The Computer’ is moving so fast that it is hard to keep up with. Whereas DOS used to, windows now dominate the market with the former being gradually pushed out because modern printers will not accommodate it. Our clients now expect computerised results, but buying equipment, maintaining and updating programs is expensive. Our expertise has been used to develop such programs and considerable time and effort has been spent on giving input to programmers. The Institute’s own office program has been radically updated over recent years and is now in my opinion excellent. The secretaries office is inundated with enquiries, but we have lost out on advertising. For a decent sized ad in the Licensee we used to pay just £45, but on new ownership this escalated to over £200 – a figure we just cannot afford. The thinking tank is already in motion and we hope to have solid representation in the trade press very soon. It does make a difference and we must do something to portray ourselves, but sadly we can only do what we can afford. I am very optimistic that this year is going to be a good one for the Institute. We are on line to make a reasonable profit, but this must be sustained so that we have funds to develop ourselves throughout the coming years. An adequate amount of money must be set aside each year purely for marketing. Through doing this we can increase our membership which gives us a better income and subsequently a better cash flow with which to project ourselves into this millennium. The Institute has some excellent strengths which are under utilised and we cannot always proceed in projects that we want due to cash restraints. We are coming out of this rut which has curtailed us for several years and I am optimistic of a bright, rigorous and beneficial future. The Institute will go well and will progress as the start of this century passes. We have already commenced work on the various projects mentioned in the first paragraph and have a lot more in hand. Most of our members are now on E-Mail and having been represented on the Web, the

NEWS ROUND UP Many employers who do not provide their staff with a written contract of employment within two months are now breaking the law. Since July the law covers all employees no matter how few hours they work. Their contract of employment should clearly lay down all the terms and conditions of employment including any specific rules that the employer wishes to introduce. It should however be remembered that such conditions must be reasonable and of course lawful. If there is any dispute that eventually ends up at an industrial tribunal there is little chance of an employer winning if no such contract exists.

The new Human Rights Law may cause problems to small businesses and licensees in the following ways. Licensees who use CCTV to monitor tills, customers and staff may find that they are breaking the new law. Employers who read employees private Email or letters may be breaking the privacy laws. Employers who insist on uniforms will have to be extremely careful. As the law is new it will be some time as to what operating changes employers will have to make but clients should be warned to check before making any changes.

Pub companies are getting tough on their tenants or lessees buying out of tie. Punch Taverns has issued a strongly worded letter to its lessees stating that ‘a line has been drawn in the sand’ and reiterating their rules on the tie. Many companies are installing line-monitoring systems to ensure that buying out is kept to a minimum. Punch, again, have arranged with Holsten Pils to use special red tops in their units thus enabling BDM’s to quickly spot the usual green tops. Unique, Enterprise and Whitbread have all been getting tough on tenants caught buying out.

New Products Metz has been joined by two variants Black Metz Contains a measure and a half of chill filtered black schnapps to give it a refreshing taste. Still Metz Again based around chill filtered schnapps with the addition of citrus essence and still spring water. Metz 40 Bacardi-Martini has further extended the Metz range by the introduction of Metz 40. This is a triple filtered premium schnapps and is targeted at the lucrative 18 – 24 year old market. It comes in acid etched bottles. A special promotional back bar display is available on the purchase of two or more bottles. – further details from the Judderman.

A new beer launched in Canada recently is said to increase levels of testerone in the male body. Rethink Beer is the result of a merger between Tree Brewery and Rethink Advertising. It is a lager infused with various herbs including ginseng, gingko and tribulus. The ‘viagra from Niagra’ should increase testerone levels and so raise sexual appetite.

Jim Beam has recently launched a range

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of four super premium American whiskies. They are collectively known as ‘The Small Batch Bourbon Range’. Knob Creek Nine years old, 50% abv, matured in charred white oak barrels. It has a maple sugar aroma, sweet and rich full-bodied flavour. Basil Hayden’s The lightest bodied bourbon with a 40% abv with a spicy overtone. Bakers 53% abv, a silky smooth textured bourbon with

a warm mellow flavour. Booker’s Top of the range connoisseur’s bourbon straight from the barrel with an abv of 62.5%

Theakston’s Cool Cask Theakstons have developed a new cask beer after listening to comments from the Cask Marque scheme. Whilst the beer is kept at cellar temperature it is flash cooled at the point of

dispense through a specially designed cooler known as a ‘Motown’. This equipment cost around £1100 but delivers a pint at a constant ten degrees which is much more acceptable to the modern palate without any loss of aroma or taste. Hopefully it will lead to a resurgence in cask conditioned beers.

Continued from page one Although Interbrew was only formed in 1987 they quickly took over breweries in the newly emerging Eastern Europe, in Hungary in 1991, Croatia and Romania in 1994 then Bulgaria and the Ukraine in 1996. The most important step was the takeover in 1995 of the Canadian Brewery, Labbatts. This gave it an interest in the extremely lucrative American market. Further acquisitions have recently been made in China and Korea which have been identified as growing markets. The Man behind Interbrew Hugo Powell was born in 1945 of British parents in India. Although educated at Charterhouse and Oxford he has spent most of his working life outside Britain. His first job was with Unilever but he eventually ended up as Chief Executive of the Canadian Brewery Labatts. When Interbrew took over the company in 1985 he stayed on and eventually became chief executive of the parent company. His only interest in the British Brewing Industry at that time was how well Stella Artois was doing.

It soon became obvious that Heinekin wanted to leave Whitbread and so plans were drawn up for the purchase of Whitbread initially, but it soon became obvious that Bass was going to be put for sale. Plans were quickly drawn up enabling Interbrew to steal the march on potential competitors such as Carlsberg, Heinekin and South African Breweries. In the event negotiations turned into a form of an auction and the price paid was in fact higher than that initially placed on the sale. However the vast price paid was more for the brands than the actual breweries and Hugo Powell is confident that long term the purchase is good value. One hurdle to the sale is the clearance required by Trade and Industry Secretary, Stephen Byers. Hugo Powell is confident that there is no problem with market share as unlike the proposed Carlsberg-Tetley/Bass merger there are no pubs involved. Far from seeing a reduction in cask conditioned beers, Hugo Powell actually sees an increase in brands such as Boddingtons and Draught Bass under his control. Beer has declined in Britain

by at least one per cent per year over the last ten years. Powell sees growth in two areas in the coming years – lager and speciality beers. These areas are the areas that Interbrew recognise as their strengths. Look at the advertising slogan for Stella –‘reassuringly expensive’ , this has undoubtedly worked for Stella so why should the skill necessary in keeping good cask conditioned beer not be recognised and warrant a premium price. He has made it plain that he wishes to review the policy of large discounts available to the licensed trade. It is only the largest of the brewery concerns that can afford to discount beers to the level that has been demanded. This has resulted in many small regional breweries being closed down over the past few years. Because the profits have not been available less resources have been spent on marketing and research and development. Most importantly Powell sees Interbrew as a brewer and not a retailer. He is also an extremely astute businessman who sees the short term results of the discounts being offered.n

Are we really one big happy family in Europe? Yes or No - asks George Giles A sprinkling of imagination, a generous helping of conviction and a great deal of talk have strengthened the European Union and helped to keep the much desired peace. But the E.U. is a family and like all families it needs to grow ..... The Germans are the greatest fans of? GARDEN GNOMES (35 Million) and sausages of which there are some 1,456 different types. They also have chip distributors and a CONDOM home delivery service. The Dutch hold the record for? SIESTAS 42.3% of the population partake. The Greeks are the heaviest Smokers with 9.3 cigarettes per day per inhabitant. The British are the most generous (£3million Donated to charity each year) and hard working (an average working life of 56,918 hours, compared to 49,506 hours in France, The Belgians are the most welcoming towards immigrants (5.4% of the population) but they do have the highest divorce rate, The Spanish have the best medical back up (the highest doctor/patient ratio) and are the biggest cinema goers (two films per year per inhabitant. The Swedish are the most sporting and energetic (80% of the population practice a sport and 4.7% are over 80) wonder what sport is the most popular? The Italians are the biggest water drinkers (consuming 139 litres a year per inhabitant) and the most elegant dressers (14% of their income is spent on their wardrobe) The French are the best lovers? (or so they think) and the biggest slipper wearers (1.4 pairs per year) obviously in the bedroom a lot. The Finnish are the biggest users of Mobile phones and their schools have the best Internet access The Portuguese are nice people and make lots of Port and decent wines. The Austrians yodel a lot but apart from that are quite boring. One of the reasons for founding the union was the wish, shared by all, to avoid new conflicts, such a set up would make it very difficult for two nations who had been enemies for years but had been induced to live under the same roof to manage a conflict. The European constitution doesn’t have the answer to every thing and the adventure has only just begun... while Europe is still being built.

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SIMON MONTGOMERY ASKEW FILSA 2.3.1949 - 24.8.2000 (AN APPRECIATION BY LESLIE KERR FILSA) It is with deep regret that we record the passing of Simon Askew, a fellow of this institute. Simon was born in Stockton upon Tees and went to Kings Bruton public school. He went on to be a room steward at Chartwell and Churchill was a hero of his. He was a monarchist and passionately fond of this country with all its pomp and ceremony. Linda recalls him being very upset at the fire at Windsor castle. He was a religious man and devoted a lot of time to his church - St Mary’s - where he will be greatly missed I knew Simon as a colleague. He was full of integrity and I respected his comments often laced with humour. He never failed to get in those ‘last minute’ jobs that so often happen to us. Simon became ill with a brain tumour and was operated on, after which his fate was ordained. With true grit and against doctors orders he and Linda went for a short break to Gibraltar - his British Raj and had a good time. On return he made an attempt to work again but alas could not and passed away on the 25th. August. I am most grateful to Linda for taking time to talk to me at this difficult time. Our deepest sympathy in their great loss goes to his mother Sheila, sister Jane, two daughters and three grandchildren and to his great love Linda.

25ml to 35ml – Raising Your Spirits! A contribution by Tim Downes of UDV

urrently, spirits in the on trade are considered poor value with the measure size seen as miserly. This is hardly surprising. The UK has one of

Fig 1 the smallest shots in the world: in Spain and Greece you’ll get 70ml, in the USA 40ml and even in Ireland it’s 35.5ml. Furthermore, how many people pour themselves a 25ml measure at home – yet this continues to be the choice of the majority of pubs and bars! - see Fig 1. In blind taste testing of mixed spirit drinks, 35ml came out ahead of 50ml with 25ml clear bottom! Furthermore, research shows that even with a 20% price increase, 9 out of 10 spirit drinkers would prefer a 35ml measure and this is supported by findings from outlets that have made the switch to the larger measure.The combination of a better quality & improved value perception has led to increased sales. But it’s a bigger measure, customers will just drink less? A survey of over 400 spirits drinkers found that switching to

Fig 2

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35ml measures would have a positive impact on both frequency of spirit drinking and the number of spirit drinks they would tend to consume over the course of an evening. Results to date back this up. Without exception the number of drinks sold has remained the

same or increased. Unlike most upsizing initiatives which purely aim to offer increased volume (e.g. the two pint glass) and can lead to a decline in drinks, changing the measure size is really about delivering a better drink and better value. There is very little change in the size of the drink and as evaluation of converted pubs shows, any impact on unit sales tends to be positive. Results from an extensive testing programme (across more than a dozen managed chains and numerous independent bars) show an average uplift in profit of around 15%. This combined with great customer feedback has encouraged a number of pub chains such as Eldridge Pope and Tom Cobleigh and many more independent outlets to switch - see Fig 2. Research & testing suggests a price increase of around 20% is optimum to

1) A 20% increase in price delivers on average 14p additional cash profit per shot 2) % G.P. delivered by spirits will often be higher than other drinks categories particularly when you take into account associated mixer sales 3) The change in sales mix in favour of higher margin spirits has, in a number of examples, led to an increase in wet sales % GP. Obviously, one of the key challenges is to communicate the change - otherwise, customers may only pick up on the price increase. However, through good communication of the increased measure & better value, outlets have encountered few (if any) queries around pricing. UDV have developed a wide range of POS from posters through to stirrers. This not only communicates the increase in measure size (40% bigger spirits) but also

Fig 3 deliver improved value for the customer & enhanced profitability for the publican. This is in line with upsizing initiatives in other categories & has been supported by the findings from 35ml activity to date where unit sales have increased and consumer feedback has been universally positive. This will obviously impact on % GP of spirits (up to 4%). Whilst this is important, happy customers driving profitable sales is the ultimate objective of most pubs. Attempts to increase prices by the full 40% have led to greater resistance from customers, decline in units sold and ultimately lower sales and profit. For 35ml, it is the combination of improved value and quality which motivates customers driving publican’s sales and profit. Other factors to bear in mind when considering this drop in G.P.

the improved value and drink quality. Finally, there is the question of strength and drink driving. Most people are surprised by the strength of spirits. A couple of 35ml based Gin & tonics still represents less alcohol than a pint of premium larger, two PPLs or large (250ml) glass of wine. Communication materials include information in relative strength and results from ‘drive-to’ food pubs (broadly in line with other types of pub) suggest that this doesn’t impact on the number of drinks see Fig 3. In summary, almost without exception, where 35ml has been introduced, sales and profit have increased, feedback from customers has been positive and publicans have been more than satisfied with results.n

THE ‘VATMAN’ COMETH...! Part 2 - By Jim Hughes As a follow up to his previous article on the reasons for receiving a VAT inspection visit Jim Hughes of Appleby VAT Consultants now specifically deals with the main aspects of what. the ‘Vatman’ is likely to look for when visiting a public house establishment. As you will see, one of the key ‘tools’ that Customs & Excise use is a mark up exercise and it is this area that Jim concentrates on. It is therefore vital that you properly record all factors which may ultimately affect your gross profit margin.

ustoms & Excise often routinely send out Business Questionnaires to traders so that they can use the information emanating from the completion of the questionnaire to help them decide whether to visit particular businesses. You may therefore at some time receive a Customs & Excise Business and/or Pub Questionnaire out of the blue. Customs & Excise will request that you answer various questions about your business and submit your last three available sets of annual accounts. Questionnaires vary between VAT offices. The following information will however likely be sought from you about your business: •

Prior to visiting you Customs & Excise will have calculated your overall mark up for the business from your previous VAT return declarations. They will have compared your mark up to the mark-up achieved by other businesses within the same trade classification. This is very much a rule of thumb calculation but it will give Customs & Excise an indication of how the business is performing. They will also have compared the sales shown in your annual accounts to the corresponding sales reflected through your VAT returns. Soon into the visit the VAT Inspector will carry out his/her basic checks on the business. This will probably involve asking you at length about all trading activities, sources of supplies and income, cashing up procedures etc. During the visit the VAT Inspector will at some stage concentrate on the mark ups that you achieve on your main selling lines It is therefore vitally important that the Inspector is made fully aware of all factors which may affect the mark ups actually achieved. These include: • ‘Happy Hours’, promotions, discounts, off sales etc. Make sure that the prices charged during any such period of trading are properly disclosed to the Inspector. Your stocktaker will also need to be aware of all such schemes so that appropriate allowances can be made on your stock report to reflect the reduced selling prices that will be realised from these types of schemes. • Pipe cleaning. Where an accurate record has not been kept the allowance for this will be calculated by your stocktaker and should reflect the length of draw, frequency of cleaning etc. •

Comprehensive records should also be maintained for free of charge stock, writeoffs, wastage, gratuities, stock used as prizes for quizzes etc. Prizes arc deemed to be business gifts so there is no VAT due on goods which cost you £15 or less.

•

Drinks provided free of charge. Ideally all

drinks should be paid for as this lets staff and customers see that no free gratis drinks are given out which could deter theft, complacency etc. Where true drinks arc given out to staff, draymen and customers a comprehensive record of such should be kept. Free drinks, where no VAT is due, can be supplied to staff if it can be shown that this is part of a staff member’s contract of employment i.e. there is specifically an entitlement to a certain number of free drinks per week. Where this is not the case and free drinks are given to staff on an ad hoc basis then input tax is not recoverable as the supply is deemed to be business entertainment. Similarly complimentary drinks given to customers, salesmen etc. are classed as business entertainment and therefore no input tax can be recovered. As already stated Customs & Excise tend to use a ‘mark up’ calculation when arriving at expected sales figures on selling lines not gross profit margins (GP’s). Mark up is the selling price less the purchase price divided by the purchase price. The gross profit is the selling price (SP) less the purchase price (PP) divided by selling price. 100% mark up therefore equals 50% GP. For example: A 35ml nip of malt whisky is sold at £1.50 A 70cl bottle of the whisky costs £16.00 excluding VAT. The purchase price of the nip is therefore £0.94 i.e. £18.80 divided by 20 (no of nips in a bottle) SP=£1.50 PP=£0.94 Mark Up therefore (1.50-0.94)/0.94 = 59 57% GP therefore (1.50-0.94)/1.50 = 37.33% The VAT inspector will probably attempt some form of basic weighted mark up exercise over a given period as a basic credibility check on your declared sales. The weighted mark up at this stage will not be an exact science as stock variations and other relevant factors will not have been taken into account. Prior to undertaking this exercise the Inspector will

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Details of all your business activities and business premises • The legal status of the business plus any associated VAT registrations that you are involved in • Make and model of all tills you have with details on the taking of ‘Z’ readings (Remember that till reports can provide the Vatman with a lot of information) • Whether income is received from pool tables, phones, machines etc. Be prepared to give details of any gaming machine licences that you have • Where applicable, details of food sales and purchases relating to submittal annual accounts • Confirmation of size of spirit and wine measures used • Details of discounts, offers, happy hours etc and an indication of the overall mark up you consider that you achieve on bar and food sales. Once you have completed and returned the questionnaire, along with your annual accounts, Customs & Excise may advise you that they have decided not to visit you after all. If they however arrange for a visit to be carried out it does not necessarily mean that they consider that there may be a problem with your VAT declarations. You will probably seek to advise your accountant of the impending visit. Hopefully you will have a good working relationship with your accountant. It is important that you have in place reliable and accurate accounting procedures and that your accountant has a good working knowledge of

the pub trade. You can decide with your accountant whether he/she need attend the VAT visit but often it is not necessary unless potential problems arise.

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naturally have to identify aspects of your trading activities, such as the examples given above, which may affect the actual mark ups achieved. The Inspector will then work out the mark up on your must popular selling lines and apply the mark ups found accordingly to your purchases of the selected products during the

period used. An estimate of the mark up on the ‘other’ products included in the calculation will be used. A basic example of a weighted mark up is shown in the table. The weighted mark up which would then be applied to the value of all your goods for resale over a given period would be 105% i.e. (26750 – 13050)/13050. Should a significant discrepancy between your expected sales and declared sales be apparent the inspector will then probably carry out a more in depth mark up exercise and may well take the books and records away to do this as it is a very time consuming task. If your books and records are taken away then it is likely that the Inspector feels that he/she has cause for concern about your VAT declarations. Should the Inspector consider that there is evidence to support that

there has been an underdeclaration of VAT then he/she will raise a VAT assessment for the alleged VAT arrears. VAT assessments, based on mark up exercises, are usually open to challenge. It is important that your representative approaches any disagreement constructively by properly collating clear and concise evidence as the basis for any appeal. Where agreement with the VAT Inspector cannot be reached then a local reconsideration can be sought. A local reconsideration is undertaken by an independent officer based within the VAT Office from where the assessment was raised. Appeals and reconsiderations are subject to time limits so ensure that these are adhered to throughout the course of correspondence with the VAT Office. Where a local reconsideration has been requested and is subsequently dismissed then you have recourse to have your appeal heard at a VAT Tribunal hearing.n Anyone wishing more information on VAT appeals and reconsiderations can contact Jim Hughes of Appleby VAT Consultants on 01620 829195.

News from Poppleston Allen Two articles from Johnathan Phillips

he prevention of disorder and protection of premises is a major concern for licensees and licensees often ask what steps they can take if trouble breaks out at their premises. Licensees do of course have a general power to refuse to admit, or to order to leave, anyone who is drunk or disorderly, and indeed any other patron, at their discretion. This power may also be delegated to their staff. In exercising this discretion licensees must be careful not to fall foul of discrimination law - this will be discussed in more detail in a later issue. Licensees should also bear in mind that if they permit violent, quarrelsome or riotous conduct on their premises, they are liable to prosecution. A licensee is legally obliged to request anyone behaving in such a way to leave, and may eject them physically, using no more force than necessary, if they refuse to leave. It is, of course,

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here have been some significant changes to the appeals system introduced for all planning appeals lodged on or after 1st August 2000. In a bid to speed up the appeals system, written statements of case for written reps appeals, informal hearings or local inquiries must be submitted to the Secretary of State (SoS) within six weeks of the SoS’s confirmation that the appeal can go ahead. A further three weeks will be allowed for each party to submit a written response to another party’s statement. The six week and nine week deadlines will be mandatory. Statements received after this period will “normally” not be admissible. For local inquiries, parties are required to submit proofs of evidence and a

possible to request the assistance of the police if the circumstances demand it and the police have a duty to assist. Licensees should also be aware that their responsibilities do not end at the door of the premises. Cases show that disorderly behaviour of customers on the pavement outside licensed premises can be the responsibility of the licensee, although neither they, nor their staff, have any power beyond that of the ordinary citizen to deal with it. It is therefore of little use to simply eject people and take no further action - under such circumstances the police should be called. Many licensees worry that call outs to their premises will be black marks against them so far as the police are concerned but active cooperation with the police is usually very beneficial to the licensee. statement of common ground no later than four weeks before the start of the inquiry. The speaking order for local inquiries has also been reversed. Local planning authorities will now have to present their cases first and their advocates will consequently have the last word. This could be advantageous for experienced local authority advocates. At the current time, the procedure for advertisement appeals remains unchanged, but is currently under review. Chances of success Government statistics demonstrate that the likelihood of obtaining success at appeal is increased significantly by pursuing an appeal

Worrying incidents at, or outside the premises, should be discussed with them but it is advisable for licensees to keep their own records of such incidents just in case any of the incidents are raised on the next renewal of the licence, or upon revocation.n

by local inquiry, rather than by the simpler procedure of exchange of written statements. In the year 1999/2000, provisional figures show that only a third (34%) of written representation appeals were allowed, compared with approximately half (50%) of local inquiry appeals. Appeals by informal hearing fell between the two (40%). Due to the adversarial nature of local inquiries and requisite escalating costs for good representation, the more money spent on pursing planning appeals appears to be a decisive factor on the likelihood of securing a successful outcome.n

ollowing my lead article in the September 2000 edition of Stock Auditor regarding U.D.V Brands promotional literature it was pleasing to note the discussions and comments my opinion had stimulated. It was not intended to be controversial but more of a reaction to the misleading advertising and advice that the licensed trade is often subjected to. In my defence to the response from David Ganney in the last issue of Stock Auditor, I certainly do not assume that most stock auditors and their clients are stupid, as I did not select the banner headline of ‘A Warning to all Stock Auditors’ but merely wrote the feature on a subject I have strong feelings about. Licensees who utilise the services of a Stock Auditor are generally well advised and a function of the ILTSA is to ensure that its members are kept well informed of changes within the trade that may be relevant to our profession. There are however a large number of licensees who do not take advantage of the services we have to offer and are not familiar with the workings of gross profit, cash profit, mark-ups, and percentages. I am well aware of this fact from the number of Institute Training Courses and other trade seminars on which I have lectured. I am well aware that gross profit and cash profits are different and spend much of my time explaining the difference to clients and student members. It has always amazed me however since commencing stocktaking in 1964 of how many times when breweries have increased cost prices, and with government budget increases, they have tended to mislead the drinking public and publicans. The increases have generally been advertised in the media and press, and in many

A Right to Reply

by Steve Berry

cases the breweries own proposals without any suggestion of ‘mark-up’ - because - after all the licensee would still be retaining their ‘cash profit’. If these suggestions had been listened to over the years the publican would still probably be making the same 5p profit per pint they were in making 1964. I am sorry David but I can find little substance in your criticism of my opinion. You say “that by increasing vodka, bacardi, and gin measures, which are products in growth at this time, that turnover could well increase at the sacrifice of gross margins”. Yet you also agree that customers will only drink what they can afford and what is within their capacity. Then it has to follow that on this basis the only opportunity for an increase in cash profit is to attract more customers. I am not convinced that the above mentioned spirits are growth products at the present time unless you include the inclusion of these products in alcopops which seems to be the growth market at the moment. I am sure that this is probably the reason for the 35ml promotions - compete against these ready mixed drinks. You state that ‘it follows and makes perfect sense as well as being a legal requirement that if you adopt 35ml as the dispense size then the whole range should be dispensed in the same manner’. I did not say anything contrary to this in my article but I would add that even if the four main spirits of whisky, gin, vodka and rum are sold in 35ml measures there is no legislation that other items such as liqueurs must follow suit and can still be sold legally in other sizes of measure. I would admit that gross profit is important but

More on 25ml versus 35ml A contribution by Frank McCartney day and can be maintained at the larger measure (40%) with the 20% selling price increase the following figures can be achieved:

not everything to a successful businessman, however I have always worked on the principle that if you maximise gross profitability the net profits will look after themselves. In the 35 years that I have been business through two extremely hard recessions in the trade I am pleased to say that no single operator with whom I have been personally involved, and who has listened to and acted on my advice has ever gone out of business. So I also feel that I know my industry and my business, especially having been involved in many aspects of the licensed trade. While I fervently agree with your Sunday School teachings of give and you will receive, I unfortunately have been giving to Littlewoods for the last 30 years but have still yet to receive! On a more serious note U.D.V. became aware of my article and requested a meeting so they could explain the reasons for their new marketing exercise. I had an informative discussions with Paul Linthwaite who is the Director of Category Development, and Morven Berry the Category Manager for Scotland. They provided a very good presentation regarding the research they had done prior to embarking on the proposed 35ml change. I will not enlarge on their presentation as they were offered the opportunity to do this through our magazine, which I believe has been accepted and will appear in this issue. I would however like to comment on the following points:They did admit that the percentages in my own example were more in line rather than their own projections That the new measure were only suitable for certain operations, such as hotels, nightclubs and young peoples drinking establishments That in pubs customers wouldn’t necessarily change just for different measures. That anyone changing should consult their Stock Auditors for the new prices to charge. As an example of this an Institute member contacted me recently to say that a club client had recently changed from 25ml to 35ml following the U.D.V. circular without his advice. They had however changed their prices from 85p (25ml) per nip to 90p (35ml) because they ‘thought that was about right’. Following his advice they have now increased the price to £1.25 per 35ml and have maintained the same level of spirit drinkers.

The table above highlights that although GP% does reduce by 4%, the actual monetary gross profit increases by £13.13 per day, which equals £4,792 per year.

Having worked in Scotland where so many different measures are available, I have to agree that the 35ml is probably a more acceptable measure for drinking with an entire bottle of mixer. The outcome is that, we all agree, myself, David Ganney, and U.D.V. that every individual business should be advised accordingly and in conjunction with their Stock Auditor.n

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From the above figures it would appear to be in the Publicans interest to continue to sell at 24ml measuresto maintain a higher gross profit % and a greater profit per 1.5 litre. In order to offer the publican a balanced view of the debate the following information must be offered. If average spirit sales are 100 measures per

T Continued from back page completely against the trend of falling national output, increasing their output from 10,000 barrels to 18,000 barrels. A quarter of the output was in bottled beer - astonishing, bearing in mind that this trend did not happen in the rest of the brewing industry until 1939! Gales bucks the trend The First World War was a disaster for the brewing industry but Gales came out of it a stronger company. In the inter-war years beer consumption continued to fall nationally, especially as workers now had such a large consumer market in which to spend their money but Gales continued to buck the trend. Whilst the British brewing industry was losing almost half its output, the trend at Gales was entirely in the opposite direction. At the time they were producing five cask-conditioned ales and eight bottled beers. During the inter-war years the Company policy of modernisation and acquisition of pubs was maintained with the asset value of the Company rising by an impressive 77%. When Herbert Bowyer died in 1938, his son, Frederick Hugh inherited a very successful and expanding company. A reversal of fortunes After the Second World War, the story of decline in the British beer industry continued and for the first time Gales failed to buck the trend. By the end of the 1950’s, output had fallen spectacularly by some 58%. It was thought that one of the reasons for the complete reversal of fortunes was, for the first time, the quality of the beer. This and other problems were tackled and the establishment of a microbiological

laboratory saw a greater stability in quality control. In 1972, Gales became one of the first breweries to install its own pure yeast propagation plant. Great beers - outstanding growth The emergence of CAMRA endorsed Gales new ales and along with other factors contributed to the record breaking performances to come. By the 1980’s Gales had achieved quite outstanding growth, particularly in traditional draught beers whose output rose by a staggering 225%. When Hugh Bowyer died in 1982, Gales was once more in a strong position. The Chairmanship of the company was for a short while in the hands of Noel Chambers who had been on the board for a number of years but in 1987 it was back in the Bowyer family when George Bowyer took over. Growth in the free trade and a policy of expanding the number of managed houses has resulted in phenomenal performances during the 1990’s and its beers continue to win major awards. In 1991, Nigel Atkinson joined Gales from Courage and was made Managing Director and in 1993 Richard E. Gale, great grandson of Richard Rogers Gale, who was George Gale’s nephew, retired as the last member of the Gale family to be involved with the Brewery after nearly 150 years. The George Gale estate comprises over 100 tied houses, all of which serve cask conditioned ales. The Company also supplies over 600 free trade outlets. Gales comprehensive range of bottled beers is still as popular as ever.n

CROSSWORD

A bottle of Scotch to the first correct answer pulled on 23rd November from among those sent to:-

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Rosemary Cottage Green Leas Chestfield Kent CT5 3JY

Don’t Forget AGM 2001

11th and 12th May at the Derwentwater Hotel

Answers to October Crossword Across 1 Payer about to do it again. 4 Love in the hairdresser’s made room 9 Analgesic one sprain required. 10 Painter little Edward evaluated. 11 He left hoarse paddles. 12 Goat sleeps for abductions. 13 Across or down left out tip. 14 Fancy view. 16 Mae West found sheep inside. 18 Bunk found in adobe den. 20 Have ice mixture to accomplish. 21 Came about the top. 24 The king died within to remove the water. 25 In charge with muddled slice for cold sticks. 26 It’s about style this holiday place. 27 Truthful without junction sharpens. Down 1 First left betrayal for justification. 2 Don’t do it again for the journal. 3 This with a member can be found on a sailing ship. 5 A seaman wrinkled short. 6 Cereal bun food. 7 Revolutionary stud in the altogether. 8 Slipper in the grass? 13 The French canard arranged the almanac. 15 Has dial around for blooms. 17 Artist with dire confusion is a looter. 18 Exist with alcoholic drink to start. 19 As bets around the animals. 22 Stop above another punctuation. 23 Sumptuous grand.

AA Fleetwide Service Over the past nine years the AA fleetwide operation we have run for all our members has been very successful, but we would like it to be more successful and get up to or over 250 vehicles on our list. For a mere £51.00 you can have your car covered on our fleetwide operation. The car is the member not the person I would require your registration number of each vehicle you want to be covered. A private member would pay £ 140.00 for what we receive for £51.00 or put another way £0.98 pence per week. This is what we get. 1. Home start - Assistance when your vehicle lets you down at home. 2. Relay - This national recovery service takes the driver, passengers and vehicle to the destination of your choice on the U.K. mainland. 3. Relay Plus - This service extends relay to include alternative travel arrangements. These are follows. (A) The AA will pay all hire charges for a replacement vehicle up to a maximum of 48 hours beginning at the time of issue of the vehicle, immediately following the incident. (B) The AA will pay for one nights accommodation and breakfast only, for a maximum of five people, including the driver. (C) A refund of reasonable transport costs to enable the driver and up to four passengers to complete their journey. You should be aware that you must have been recovered by the AA and not any other agency to acquire this. You should also be aware that you must choose one of the above options. We can also cover our cars, at an extra charge, if we take them abroad on holiday. This can be done by asking me for a form that you will fill in and get your cover sorted out for the period you require. I believe that the current charge is £52.20 for a two week period with 10% discount when quote your fleetwide membership number which you will find on your membership cards. If you have not yet filled in and returned your renewal form for the 1st December 2000, please complete it now and send it to me. George Giles

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This month point your browser at www.intowine.com. This web sight includes much information on wine, wine regions and the production of wine with much more including famous toasts, vintage selection. Well worth a visit.

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The Breweries of Britain A Series by Trevor Knight Part Twenty

Gales - Horndean, Near Portsmouth, Hampshire Hampshire is the most diverse of southern England’s counties with its sharp town and country divisions. Like all the south, it is largely chalk country but the county is also rich in trees. For many people the New Forest is synonymous with Hampshire. Planted over 1,000 years ago, it became a royal hunting ground for William the Conqueror. The forest covers 145 square miles and besides the forest with its variety of trees, there are great heaths of gorse and heather, stretches of bog, grazing land and thatched cottages. By the 17th. century, the forest had taken on a new importance as a source of timber for England’s growing navy. The south-east of Hampshire is dominated by the mighty naval base of Portsmouth which has been inseparably connected with Britain’s days of naval greatness. For over 500 years it has been the home of the Royal Navy and that legacy still lives on in an array of majestic historic ships, castles and museums. Today the warships are more thinly scattered in Portsmouth’s 300 acre dockyard and the area is now a unique museum of the proud ships of Britain’s maritime heritage. Featured is Henry VIII’s warship Mary Rose, Lord Nelson’s HMS Victory and the pride of Queen Victoria’s fleet, HMS Warrior 1860. The city of Portsmouth was badly damaged by bombing in the Second World War, though the cathedral preserves its 12th. century transepts and chancel. In the old town there are some 15th. and 16th. century houses including the house where Charles Dickens was born in 1812. Other literary connections with the city include Sir Arthur Conan Doyle, H. G. Wells and Rudyard Kipling. A few miles north of bustling Portsmouth, the

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HSB Premium Bitter ABV 4.8% A mid-brown beer with a fruity aroma. the full-bodied sweet and fruity taste, with some maltiness, follows through to the aftertaste.

village of Horndean nestles in the rolling hillsides of the much diminished Forest of Bere. The area is crossed by main roads but preserves patches of woodland and is bordered to the north by the green pastures of the Meon valley.

the most significant in both the families and Horndean’s history, they bought the largest of the village’s four licensed premises, the Ship and Bell and its associated brewery facilities.

The River Meon flows south to join the Solent west of Portsmouth. Its green valley, rich in villages and churches dating back to Saxon times and sturdily square farmhouses in flint and brick, seems a world apart from the mighty naval base near its mouth.

However, tragedy was to strike the Gale family over the coming years. Two of Richard’s sons soon died, including Henry, so it was left for the youngest son, George, who was living and working in Portsmouth, to return to Horndean to run the family business.

In the middle of the 1800’s, the village of Horndean was very much part of rural England. Its location on the London Road, which had been improved by turnpikes as early as 1711, brought a steady stream of travellers through the village. more than anything this accounted for the existence of the four inns, especially as it frequently became the place for the final change of horses for the London to Portsmouth carriages. As traffic increased with the emergence of Portsmouth as England’s premier naval port, so the village began to benefit.

Just as George’s business was expanding in the 1860’s there was a further setback when a considerable portion of the brewery was destroyed by fire, but within a year, a new modern building was completed.

The centre of Horndean has changed little over the last 150 years. Gales brewery, the Red Lion and the Ship and Bell pubs dominate the village and the Victorian shops around the memorial square are much as they were. The Gale family steps into history One of those Victorian general shopkeepers was widowed Ann Gale. Her son Richard was a successful baker with an established bakery attached to his own house in the centre of Horndean. In 1847, Richard and his eldest son Henry took the step which was to prove one of

Festival Mild ABV 4.8% Black in colour, with a red tinge. The aroma is fruity. A sweet, fruity and malty taste, with some caramel, carries through to the aftertaste, but with some bitterness.

But tragedy strikes

Herbert Bowyer buys the business By the end of the century, Gales Brewery had expanded and prospered, avoiding becoming prey to the larger breweries who were contracting the industry. In forty years George Gale had taken a village inn and transformed it into a business worth millions by today’s values. Although a family man, George had no surviving sons to inherit the prosperous business so in 1896 he sold the entire interest to Herbert Frederick Bowyer, a miller from Surrey. Herbert Bowyer was a shrewd businessman and at a time when the brewing industry was contracting and beer consumption was falling, he was determined to make a success of Gales. One of the ways he did this was to introduce a commission system for payment of wages with the result that between 1897 and 1914, Gales went

GB ABV 4.0% A medium-bodied, deep golden brown brew that is initially malty sweet, has a fruity middle period with a hint of burnt orange and a dry hop flower tasting bitter finish.

Continued on page 10

Butser Bitter ABV 3.4% Named after the dominant hill of the local downs this is a mid-brown chestnut beer. A slightly malty and fruity aroma precludes a sweet taste with some fruit and malt. The aftertaste is sweet and fruity with a little bitterness.

Number 20

ISSN 1471-0471

December 2000

We wish all our readers a Happy Christmas and a prosperous New Year

Licensing Reform N

o doubt you are aware of the proposals for major changes in respect of the licensing laws. There has been a lot of publicity about the proposed changes much of which has centred around the potential for 24 hour opening for public houses. There is certainly a need for change since the current system for licensing sales of alcohol dates from the 19th century. It is a confused mixture of legislation intended to suppress drunkenness, disorder and ensure that workers returned to work in munitions factories during the First World War. There are around 40 separate licenses under the overall umbrella of liquor licensing. The varying requirements for each licence is complex, bureaucratic and burdensome, whilst at the same time, according to some, providing effective control of ‘problem’ premises.

A summary of the key proposals contained in the White Paper are as follows:-

A single integrated scheme for licensing premises that sell alcohol, provide public entertainment or provide refreshment at night. ♦ A new system of personal licences that allow holders to sell or serve alcohol for consumption on or off any premises possessing a premises licence. (Places providing public entertainment or refreshment at night which does not involve alcohol would require a premises licence only). ♦ The legal age for drinking alcohol on licensed premises and for buying it there, whether as off or on-sales, both to be 18. ♦ New measures to back up restrictions on underage drinking including: ♦ A new offence of buying alcohol on behalf of a person under 18 ♦ A new offence of knowingly permitting a sale to a person under 18 years ♦ Test purchasing to be placed on a statutory footing ♦ A new duty on people selling alcohol to satisfy themselves about customers’ ages (where any of these measures

have not been secured through a Private Members’ Bill presently before Parliament). ♦ Personal licences to be issued for ten years to those aged 18 or over without a relevant criminal record following a test of knowledge of licensing laws and social responsibilities, with provision for endorsement or withdrawal of licences within that period and abolition of the vague “fit and proper person” test in respect of licences to sell alcohol.. ♦ Premises licences to incorporate operating conditions (e.g. hours, noise, fire exits,

capacity) limited to crime and disorder/public safety/nuisance factors, and set locally on the basis of the balance of operator ’s requirements/resident views/police and fire authority assessments. ♦ To minimise public disorder resulting from fixed closing times, flexible opening hours with the potential for up to 24 hour opening 7 days a week, subject to consideration of the impact on local residents. ♦ Tough new powers for police to deal instantly with violent and disorderly behaviour by

Continued on page 5

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The Home Office White Paper “Time for reform: Modernisation of our Licensing Laws” contains radical proposals to rationalise and modernise the licensing regime.

♦

The Magazine of the Institute of Licensed Trade Stock Auditors

STOCK AUDITOR

The Magazine of the Institute of Licensed Trade Stock Auditors

Editor’s View

Chris Swift

nce again that time of year is upon us yet again. It never ceases to amaze me how two or three days holiday can cause so much disruption and distortion of trade. The number of clients who expect to make a fortune over the festive season never seems to reduce. As we all know taking into account November and January the festive quarter averages out more or less with any other quarter. Why is it, then that we probably all have clients who are hanging on until after Christmas to put their business on the market. If I was thinking of selling I would be trying to have it all signed over by the end of summer, looking forward to a relaxing Christmas in front of the fire. I find it difficult getting jobs booked in to the week prior to the break as everyone seems to be too busy ‘ to have the inconvenience of a stocktake’ but then those same clients always want a visit early in January to ‘see how they have done’. This year is already shaping up that way but I have learnt to make the most of the holiday, have a Christmas with the family and then head North to see in the New Year. My year-end clients have, over the years, been educated into the process of year-end adjustments and everyone seems happy. I remember turning up one New Year’s Day, meeting a client and his accountant and attempting to reconcile the count. As we all were hungover it was perhaps not the best start to New Year. The next Year the same client suggested that we did the count on the 3rd – a much more sensible idea. As my birthday is on the 31st December it is now accepted practice that I am not available on New Years Day. Anyway back to the matter in hand, the ‘Stock Auditor’. A lot of business is on a back burner at the moment although some decisions are to be made prior to Christmas- I refer, of course to the decision on the proposed takeover of Bass. , The changes to the Licensing Laws etc. As the news breaks I hope to bring news through these pages. The magazine has a distinctly Scottish feel about it this issue. Trevor Knight, continuing his series ‘ Breweries of Britain’ visits the Belhaven Brewery at Dunbar. A few years ago we visited this excellent brewery at the AGM held in Edinburgh. I think I can speak for those that attended and say it rates as one of the friendliest Brewery trips in the country – even if the guide did hail from West Yorkshire. The Scottish thread continues with an article from newly qualified member John Shield about a local whisky festival. Congratulation to John not only on qualifying but also on his first contribution to the magazine. Finally may I take this opportunity to wish all readers the very best for the festive season – please do not overdo it and lets all look forward to a happy and prosperous New Year.!

John Tandy FILSA 32 Jasmine Close The Richmonds Gloucester GL4 9FJ Tel: 01452 410349 George Giles FILSA 16 Mere Drive Fallowfield Pity Me Durham DH1 5DD Tel: 0191 386 7699 Chris Swift FILSA 13 Moor Top Road Norton Tower Halifax HX2 0NP Tel: 01422 363034 Trevor Perrott FILSA Stockwell House Kingfield Road Kingfield Woking GU22 9AB Tel: 01483 770102 Ron Foster FILSA 2 The Close Lydiard Millicent Swindon SN5 9NJ Tel: 01793 771959 Patrick Simmons FILSA 95 Norwich Road Tacolston Norwich NR16 1BP Tel: 01508 489628 Alec Crighton Rosemary Cottage Green Leas Chestfield Kent CT5 3JY Tel: 01227 794714 Fax: 0870 063 2925

White Horse Press Ltd 65-67 John Wilson Business Park Chestfield Whitstable Kent CT5 3QT

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All Subscriptions payable in advance. Published 12 times per year post free: Annual subscription £24 ISSN 1471-0471 © Institute of Licensed Trade Stock Auditors, 2000

This magazine is published by the Institute of Licensed Trade Stock Auditors. Whilst welcoming any contributions, the editor reserves the right to alter or amend them if necessary. Any opinions expressed are not necessarily those of the Council and are accepted only on that understanding. No part of this magazine may be reproduced or transmitted without written permission of the publishers.

by Bruce Thompson

write this feature while on the lovely Island of Islay on the West Coast of Scotland. Alas I am working, but find a little spare time whilst waiting for my flight home. I am pondering over the issues of the world, and contemplate over all the things happening this week – we are in the grip of weather – floods, winds and rain. The like we haven’t seen for centuries and the sort of stuff which prevents our getting to work and even worse getting home again. We await the results of The American elections and whether it be Bush or Gore it will affect all of us. Another petrol shortage looms and our own government is in disarray. In Edinburgh we have a civil servants strike and not far away in parts of Glasgow a postal dispute. We await the chancellor’s pre budget speech and news of those tragic little girls, one who has to die to save the other. Our railway system is chaotic and repairs cannot be carried out because of the floodings. Most services are delayed and many cancelled. I don’t remember such disarray all at once, and only hope that things settle down sooner rather than later. The weather is outside our control – or is it? Has man changed too much so as to cause these extremes? Have we knocked down too much of the rain forest or by penetrating the atmosphere have we upset whatever it is that controls our climatic structure? I don’t know. But perhaps one day we will find out. Strikes and disputes are all too commonplace and I will not support those who hold the country to ransom, at the same time disrupting the work and lives of those trying to carry on legitimate business. British beer drinkers pay nearly seven times more in duty than the French. Gordon Brown, the chancellor, charges 34 pence duty on a pint whereas the French pay 5 pence. This is more than double the 12 pence on petrol and a fifth more than the 24 pence difference in diesel duty, so lets hope that British beer drinkers don’t protest and cause disruption to the entire country. They have more reason to than the lorry drivers and farmers. News comes that all those energy drinks could

cut the number of road deaths caused by drivers falling asleep at the wheel. Professor Jim Horne of the Sleep Research Centre at Loughborough University used a car simulator to test the driving ability of volunteers before and after an energy drink. He found that one can of Red Bull which contains 75mg of caffeine, equal to a medium strength coffee, markedly reduced afternoon sleepiness for about an hour. Two cans almost eliminated the effects of sleepiness among the sleepdeprived participants for two hours. Fatigue among drivers is responsible for one in ten of all road accidents and one in five incidents on motorways and trunk roads. I received an E-mail this week from one of our members asking for clarification on charging for draught beer at changeovers if marginally out of date. The label reads ‘Best Before’ and technically a purchaser need not buy anything beyond that date, but generally common sense prevails. On cask ales the date is important and it is unlikely that I would sell to my client anything out of date. As far as keg beer is concerned, providing the cellar is cool and properly maintained, the beer will keep and remain in good condition for several days or even weeks after the date shown. If there were several kegs of say lager left, but I knew that it would all sell within the week after the best before date, I would advise my client to purchase it, but if I had any doubt about that amount of beer being consumed within that time span, I would negotiate a discount between the two parties so that the purchaser was able to sell the beer cheap so as to use it up. Attitudes are slightly different, depending whom the stocktaker is acting for, but at the end of the day both parties must agree and the valuer has a duty to arbitrate sensibly and positively so as to handle the sale in a satisfactory and efficient manner. Obviously if beer is well out of date or totally excessive in quantity, it should be excluded from any valuation. The vendor should always be given the opportunity to remove it from the premises though.

I had a blow out the other day on the front rear side wheel of my car, and since I had a bad arm (that’s my excuse anyway) I had to call the A.A. to change the wheel. What a wonderful service this is and how reasonable price wise. The Institute membership of the Automobile Association, which is about to be renewed, covers members for home start, relay, car hire and if necessary hotel accommodation. I have used it several times and have always found it excellent. On this occasion the patrol arrived well within the time given to me and prepared to change the wheel only to find the spare (on a comparatively new car) did not fit. I was taken six miles to the nearest Kwik Fit where I was able to buy a new tyre and then returned to my vehicle where this wheel was fitted for me. The A.A. man was always polite and even ran because he knew I was in a hurry. He was a credit to that organisation and I have written to tell them so. The argument still goes on over New Year opening. Licensees seem to have lost their battle for 36 hour opening, but the government has promised to relax their stand for next year’s celebrations. There has been a considerable amount of lobbying over the last few months, but though sympathetic, legal advisers have stressed concern that a deregulation order would have to be pushed through without a full consultation which is technically against regulations and therefore open to legal challenge. Home office officials have denied leaving it too late and blame the lords committee for not approving an extension fort this New Year. Whatever happens individual licensees will have to apply for their own extensions and they are advised to go for as late as they want and are able to control. The government clearly wants extended laws over this period and it is likely that such requests will be granted.

The Magazine of the Institute of Licensed Trade Stock Auditors

SECRETARY’S CORNER

As we approach the festive period might I pass on, on behalf of myself and the Council, good wishes to all our members and friends and good fortune in 2001.!

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The next Training course will take place from 15th to 19th March 2001 at Ilkley Contact the Secretary for details

The Magazine of the Institute of Licensed Trade Stock Auditors

NEWS ROUND UP The ILTSA Web Site is back By the time you read this the Institute will have a new web site at http:// www.iltsa.org.uk. We want it to be as useful as possible to members and anyone else who is interested. The site contains inormation on Members and Fellows. Please check your information and if there are amendments required or if you wish not to be included or if you would like a link to your own web site please contact Alec Crighton at alec@iltsa.org.uk CD Training Pack from Bass Bass has produced a CD training pack for licencees to help them develop expertise in all areas of a pub operation. Bass believe they are the first with a CD such as this. A Clean Up Act A pub in Liverpool has installed a lauderette in the bar so that customer can have a drink while they do their washing. Well I never! Caesars Forum in Streatham created a first with male lap dancers performing for women clients!!!

Crossword Winner Quite a number of correct solutions to the November crossword puzzle were received and the lucky winner whose name was first removed from the hat was Simon Haywood FILSA of Bristol. Abottle of Scotch is on its way to him. Seeing Things You may be seeing things at the bottom of your beer glass next year. Several big names have expressed an interest in a product from PintAds. Advertisements aimed directly at beer drinkers will be stencilled onto the bottom of beer glasses. Contamination Fears Stocks of Chiltern Hills Natural Mineral Water and Ashridge Spring Water should be returned immediately because of fears of contamination. Be Vigilant The Metropolitan Police are warning licensees to be particularly vigilant during the run-up to Christmas as they believe dissident terrrorist groups may be planning to sabotage the Northern Irish peace process.

New Products Two Dogs Back Pernod Ricard Brands UK is to re-launch the alcoholic lemonade Two Dogs back onto the UK market. Winter Ales Greene King has reintroduced two winter ales - Strong Suffolk Winter Ale at 6%abv and Captain Christmas at 4.6%abv

8 Ball Layman Brands has announced the launch of 8 Ball a bottled lager with an ABV of 8%. Said to be the world’s first “premium super” lager. Brewed by Shepherd Neame 8 Ball will be aimed at 18 to 25 year old males.

Congratulation to the following who have recently passed the Institute’s examination And are now qualified members

Frank E Abbot Gloucestershire Jackie Barber Leeds Adrian Barber Leeds Vanessa Bevan South Wirral Paul Bourbridge Hampshire Mark Cooper-Haime Torquay Gary Cox Essex Tracy Egan Birmingham Pio Fenech County Durham John Flint Derbyshire Ian Gare Gloucestershire John Howard Brighton Duncan McColl Glasgow John Maynard Hertfordshire Frank McCartney Stirlingshire John Shields Morayshire Louis Smith Ireland David Tindle Tyne & Wear Duncan Williams Caldicot Mathew Goulden London Also the undernoted who have been elevated to fellowship :Peter Barron Oldham Jonathan Parrett Bournemouth Barry Ross Bedford Geoffrey Sellars Bristol Patricia Walden London The following are no longer members of the Institute. If they continue to use letters after their name or suggest in any way that they are members, then the secretary should be informed immediately. Neil Acocks Bridgenorth David Cliff Kent Stephen Hart Maidenhead M.J.Norbury Manchester Neil Ventham Lincolnshire Associates names removed from the register :-

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James Armstrong West Yorkshire Keith Blowes High Wycombe David Breech Hampshire Catherine Burnside Glasgow Gary Elwell Birmingham Gary Gleeson Middlesex Nigel Morrison Lincolnshire Alan Myers North Yorkshire Keith Owen Bridgend Stephen Williams London

closing premises that rogue licence holders have allowed to become the focus of such behaviour. ♦ Children to be allowed access to any part of licensed premises at the personal licence holders’ discretion; but licensing authorities to have the discretion to restrict (e.g. by requiring adult supervision) or deny access for children to unsuitable licensed premises. ♦ Personal and premises licences to be issued by local authorities. ♦ An avenue of appeal for parties (including the police and local residents) to the Crown Court. ♦ Licences to be supported by a flexible range of sanctions (including temporary reduction in opening hours) instead of present all or nothing sanction of loss of licence. ♦ New requirements in the wake of the Thames Safety Enquiry for licensing the sale of alcohol on boats travelling within England and Wales. ♦ New arrangements for non-profit making registered clubs supplying alcohol to their members which preserves their special status. ♦ An exception will allow 16 and 17 year olds supervised by an adult to consume alcohol of less than spirits strength with a table meal on licensed premises. It must be pointed out that the White Paper in

addition to dealing with the control and sale of alcohol also addresses the provisions of all forms of public entertainments and the provision of refreshments late at night where alcohol may not be involved. In this area it suggests that take-away restaurants, which are not currently part of the licensing regime outside London, should become a premise for which a licence is required. So far as personal licences are concerned the main proposals are:-

♦ The licence will be issued by the local authority. ♦ Issued to an individual for ten years.

♦ Certain unspent convictions could cause refusal or revocation. ♦ Accredited qualification, similar to National Licensee’s Certificate, would be required. ♦ Absence from the trade for five years would invalidate the licence. ♦ Endorsement on licence for breach of licensing laws. ♦ Third endorsement leads to revocation, after hearing. ♦ Incoming licensee to register with Police and Council by letter (with copy of licence). ♦ In certain circumstances police have the right to challenge the incoming licensee. So far as the premises licence is concerned the

Surplus !

Deficit !

Sky Tv – Not only are they facing an investigation by the Office of Fair Trading into their dominance of coverage in public houses, they have been given their marching orders by many of the large pub companies. Others are said to be closely monitoring the situation. ! The Oxfordshire licensee who recently renamed his pub the ‘Moody Cow’. This has resulted in complaints that the name is insulting to women. He id facing increasing pressure to revert to the original name. ! Harvey’s brewery in Lewes, Sussex who have had a hard time during the recent floods. The repair bill is said to be likely to be in the region of £ 500,000. Hopefully they did not water the beer down. In fact a special brew called Ouse Booze has been developed with an a.b.v. of 6.5%. Eight hundred casks of beer had to be destroyed after been contaminated by flood water.

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Four Wadworths pubs that have been awarded their Casque marks. The Avon Causeway, Christchurch, Goat and Tricycle, Bournemouth Red Shoot, Ringwood and the Wig and Quill, Salisbury have all reached the strict standards for keeping and serving real ales. ! British beer drinkers hopefully will see a cut in the price of beer.The European Commission has ordered a detailed investigation into the British Beer Duty. Hopefully this will cause a cut in the duty in the next budget. The distortion of beer duty has led to bootlegging on a massive scale which is now said to be damaging the social fabric of the community. ! Ian Napier , who is in line to take over the top job in the Interbrew UK operation. This is of course subject to clearance by the regulatory body. ! The record number of associate members who recently passed their recent examinations and are now qualified members of the Institute of Licensed Trade Stock Auditors ! John McNally , manager of the Fisherman’s Tavern at Broughty Ferry near Dundee was celebrating an award for selling a range of wines. At a glitzy ceremony at Glasgow’s Hilton Hotel he was awarded the Scottish Licensed Trade News award for wine service. This was for best service, best range of wines, value for money and the range provided.

main proposals are:♦ The licence will be issued by the local authority. ♦ One premises licence required for alcohol sales, public entertainment, music and dancing, film or theatre and night refreshment. ♦ Applicant may opt out of provisions not needed. ♦ One-off fee for licence which lasts for the lifetime of the business and a further annual charge to cover inspection and enforcement. ♦ Applications must have an operating plan, indicating type of operation, opt outs, crime and disorder measures (door supervisors, CCTV), capacity, fire exits and soundproofing. The plan may indicate provisional licenses (up to 25 a year) which may be operated with five days notice to the police. ♦ Crime and disorder, public safety or nuisance considerations may allow licensing authorities to add conditions. ♦ Licensing authority may not refuse on grounds of need or commercial viability. ♦ Presumption in favour of granting unopposed applications, a hearing should take place only if there is a reasonable, relevant objection. ♦ Prosecution for breach of licence conditions. ♦ Capacity to review licence and conditions on application by authorities and, if relevant, local residents.!

The Magazine of the Institute of Licensed Trade Stock Auditors

Continued from front page

The Magazine of the Institute of Licensed Trade Stock Auditors

AUTUMN SPEYSIDE WHISKY FESTIVAL John Shields

thought the readers might be interested to hear from an ex-Associate Member (just - see the list of examination passes Ed.) from the North of Scotland.

fireworks exploding over the town’s famous clock tower. A ceilidh, an evening of Scottish music, song and dance followed the opening party, was packed to capacity with locals and visitors. Friday also saw the start of a four-day marathon of whisky talk and taste sessions

to sample before, during and after an impressive four-course dinner with a strong Scottish flavour.

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In Dufftown, the Taste of Speys Restaurant My name is John Shields, and twice a year I was packed with dinners enjoying a fiveassist with the Whisky Festival at the Whisky course meal that included tasting a variety of Shop in Dufftown, owned by Fiona Murdoch, Glenfiddich and Balvenie products, while at many thanks for her help the town’s new in compiling this wee Restaurant La story - she is a true Faisanderie the whiskyconnoisseur of whisky. flavored six-course menu was The best ever - that’s accompanied by an inhow the recent Autumn depth wine tasting. As Speyside Whisky an alternative, other Festival is being whisky fans attended a described after four days special Aberlour malt of whisky-filled fun, whisky tasting and which ran for a long video at the Mash Tun weekend over the end of pub in Aberlour. September and beginning of October. Sunday saw a chance to try some alternative Special tours of tasting with the annual distilleries not normally tasting competition at open to the public, the Highlander Inn in plenty of tasting sessions, a ceilidh, David Stirk (right) receiving a bottle of The Macallan and a quaich* from Gordon Craigellachie, and a music, special whisky Haughton of Dufftown 2000, the festival organisers. David won 1st place in the beer tasting party at the meals, a craft fair and International Whisky Nosing Competition by correctly identifying 7 out of the 12 Whisky Shop in the exhibitions of miniatures whiskies by nose alone. David, who works for Whisky Magazine, was one of the evening. Monday’s and a rare private guest speakers at the festival. *For the Sassenachs a quaich is a two handled drinking programme saw a rare Open Day at The collection of model vessel. Macallan Distillery, whisky trucks were which invited people to just turn up for a very among a host of activities laid on. at the town’s Whisky Shop, a morning of special tour of one of Speyside’s best-loved Most popular of all were the bus tours that kiltmaking demonstrations by local kiltmaker distilleries. took visitors to distilleries not normally open Ann Higgins, and the first round of the to the public. Conducted by lan Miller, Speyside Whisky International Malt Whisky Prizes for the winners in the Nosing Competition were awarded on Monday manager of Glenfiddich Distillery, and Nosing Competition. lunchtime with David Stirk of Whisky Gordon Haughton, Dufftown 2000’s Saturday’s programme included the start of Magazine, who came to the festival as a guest treasurer, the tours took in Dailuaine, a two-day craft fair in Dufflown’s Memorial speaker at various talks, walking away in Benrinnes, Macallan and Speyburn on the Hall that featured for the first time an triumph as the individual winner, while a Friday, the many distilleries in Dufflown on exhibition of model trucks, many of them in team known as the Hairy Highlanders from Saturday, and three J&B distilleries, whisky company liveries. Down the road at the Highlander Inn took the team prize. Knockando, Auchroisk, Strathmill on the Royal Oak pub the Mini Bottle Club laid Entrants in the nosing competition were Monday. on a magnificent exhibition of minature The tours were popular not only because of bottles which proved very popular throughout asked to identify 12 different single malts by the rare chance to visit these distilleries and the weekend and which will be increased in nose only - a feat which is both difficult and fun to take part in. enjoy a dram at each but also for the size for next year’s festival. Everyone who came has been enthusiastic in entertainment value of the tour guides. Those There was also a two-day golf competition their praise of the festival and the good time who participated in the last tour on Monday at Dufftown Golf Club, a walking tour of the they had visiting Speyside. were having such a good time that they town’s heritage sites and special tours on the refused to get off the bus at the end of the newly reopened section of the Keith to If you don’t want to miss out on the fun, mark journey! Dufftown Railway, which included a dram the dates Friday 28 September to Monday 1 October 2001 in your diaries ... and keep an The festival, which has now taken place for or two to keep the whisky theme going. eye on the Dufftown 2000 website at four consecutive years, was officially Saturday evening was a big meal night with www.dufftown.co.uk from the middle of next launched at a street party in Dufftown’s three different festival dinners. One at Innes summer, or contact Fiona Murdoch at: square on the Friday evemng. Everyone House near Elgin was sponsored by present was given a free dram of either whiskyshop.Dufftown@virgin.net! scotchwhisky.com and included guest Glenfiddich or Balvenie, the Dufftown Pipe speakers and a huge variety of single malts Band played in the street and there were

by Jeremy Allen of Poppleston Allen

e have reported previously 7th November on the Government’s reported intention to bring forward certain restrictive measures from the White Paper and put them in this year’s Queen’s Speech. They will then form part of a Crime & Disorder Bill likely to become law before the next election. Where does this leave Licensing Reform? The licensed trade is likely to be outraged if the widespread consultation on the White Paper simply produces a more restrictive regime for the leisure industry. The Government is therefore likely to reinforce its commitment to the wider licensing reform. Mike O’Brien told the Business in Sport in Leisure conference in London that the Government remained wholly committed to reform and it was likely that a draft bill would be prepared early next year. The biggest area of controversy in the responses to the White Paper had been over who should control the system, local authorities or the magistrates. The Home Office had not seen any arguments that would change its mind that any one other than local authorities should run the licensing process. Whilst politically this is probably true, it is unlikely that the proposal will survive without magistrates being given more powers. At the very least this is likely to extend to hearing appeals from decisions by the local authority. It is also possible that

Magistrates will be given powers in certain cases, e.g, where people’s livelihoods are at risk because of allegations under the Personal Licence.

the necessary enforcement later.

The reasons for giving licensing administration to local authorities are stated to be democratic accountability on local issues. This statement is very difficult to square with the Government’s expressed intention to restrict the powers of local authorities so as not to impede the leisure trade. Westminster City Council is currently proposing that licenses in particular areas should not be granted beyond 1:00 a.m. Existing premises may find their hours cut back. This is local democratic accountability. Will the Government interfere?

What is quite clear from the responses is that the Government is going to have to consult again on the detail of Law Reform. It has been a steep learning curve for Civil Servants. The more the Home Office goes into this subject the more it realises that this is a complicated area where policy decisions are going to be required on some very sensitive issues that may impact on crime and disorder as well as the leisure trade. A delicate balance will have to be achieved from freeing up the leisure trade on the one hand and yet at the same time regulating issues that are likely to cause public disorder, noise and nuisance. The great British public’s attitude to licensing reform varies according to whether they are customers of the venues or neighbours! And meanwhile ...

Licensing Fees. The figures in the Appendices to the White Paper were widely criticised and do not stand up to any sort of examination. The Government feels that the local tax payer should not have to pick up the bill for the new licensing system so logically it must fall upon the trade. The Government is however committed to ensuring that local authorities do not use liquor licensing as a revenue earner. Unless fees rise substantially it seems unlikely that local authorities will be prepared to take the work on in the first place or provide officers to deal with

The Justices’ Clerks’ Society with the Magistrates’ Association are in the process of revising the Good Practice Guide. This document has had a huge impact on sorting out many of the inconsistencies that have existed between Magistrates’ Committees in different parts of the country. I am sure that further refinements will make it even more acceptable. We are almost getting to the state where, subject to certain small amendments, one has to wonder whether it’s worth going to all the trouble to reform the Licensing Act!!

The Government has two other problems in relation to local authorities:-

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Don’t Forget AGM 2001 11th and 12th May at the Derwentwater Hotel

The Magazine of the Institute of Licensed Trade Stock Auditors

Licensing Reform

The Magazine of the Institute of Licensed Trade Stock Auditors

October 2000 Exam Questions Questions 1-10 are compulsory 1.

A client informs you that he has been offered Britvic Post Mix Pepsi Cola at £29.50 per 10 litre box and R. Whites Lemonade at £27.50 per 10 litre box. At present he is paying £4.32 for a dozen litres of Pepsi and £2.60 for a dozen litres of lemonade. He asks you what is the difference in gross profit percentage between Post Mix and bottled Pepsi and lemonade. The selling price of both is 95p half pint. 2. Sales for the year at a clients premises are as below. With the aim of obtaining better purchase prices, he asks you to work out the actual barrelage of each item. Calculate each and show your workings Lager 5885 gallons Bitter 5643 gallons Budweiser (330 ml) 2671 dozens Becks (275 ml) 2499 dozens Newcastle Brown (550 ml) 498 dozens St. Peters (500 ml) 293 dozens 3. A client who wishes to achieve a Gross Profit of 48% on draught beers and 63% on wines asks you for the formulae he should use for converting cost prices (excluding VAT) to selling prices (including VAT) for these two categories. Show the formula for each and indicate how you arrived at it. 4. Having completed a physical count in a food stocktaking exercise, you have the following information: Opening Stock 2899.70 Closing Stock 3160.14 Purchases (excl. VAT) 9514.18 Income (inc. VAT) 24302.16 Allowances at retail (inc. VAT) 1711.56 Produce: (a) the trading account excluding allowances (b) the trading account including allowances at retail (c) the trading account including allowances at cost 5. Explain briefly the difference between:(a) Meniscus and Obscuration (b) Out of Date and Short dates (c) Input VAT and Output VAT (d) Mark up and Gross Profit (e) Sales Mix Ratio and Section Percentage (f) Extended Report and Trading Account. 6. Explain when and why you would carry out a reconciliation on casks, kegs, bottles and cases. Show a sample report, using the following figures, and list any problems which you might encounter. Produce a valuation. Item Opening Purchases Returns Closing Cost Stock Stock Price Bottles (Small) 262 170 143 285 52p Bottles (Pints) 36 16 16 36 73p Cases 124 61 53 130 £1.00 Casks (Kilderkin) 19 15 18 14 Kegs (11 gallons) 27 19 20 26 7. (a)

(b) (c)

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Give the answer to each of the following: During a happy hour, an hotel bar gives a 33% discount on every drink. If takings for the cheaper drink periods amount to £842.00 what allowance would you make. The sales of Bells Whisky are 23 3/10ths during a 28 day stock period and there are 8 6/10ths left in stock. What is the days stock holding figure. You purchase a 1.5 litre whisky at £21.18 plus VAT. If you use a 25 ml measure, what selling price would you have to charge per nip to achieve a 57% gross profit? You are taking both liquor and food stocks at the same premises. Records show that, during the stock period, the retail value of liquor transferred to the kitchen was £418.16 and the cost value of lemons, olives etc., transferred from the kitchen operation to the bar was £92.81. Show with examples, how you would deal with both these transfers. Liquor GP% is usually 61%. What is meant by food costing. Explain, with examples, what advice you would give to a client who is not achieving satisfactory margins. Using the quantities and cost prices listed below, show how to achieve a 60% GP on the dish specified Quantity Ingredient per dish Cost price from invoice Sirloin 8 oz £11.26 per kilo Peas 3 oz £1.87 per lb. Carrots 4 oz £1.00 per lb Broccoli 3 oz £1.97 per lb.

Garnishes.sauces portion .25p per portion Condiments portion .08p per portion 10. Explain how you would react to the following situations, on a regular stocktake:(a) Beer has been returned during the stock period, but the amount has not been recorded. (b) Your client has received 2 kegs of lager free of charge which have been sold at half the normal price. (c) Two kegs of lager in the cellar have also been received free of charge and will be sold at the full price (d) Selling prices have been increased halfway through the stock period (e) Beer has been returned for which no credit has been given (f) You are given a credit note for beer returned three months previously, but not then recorded

Answer 8 out the following 10 questions 11.

12.

13.

You have been requested to carry out a changeover valuation of stock at a newsagents shop which includes an off-licence; you are working for both parties. The Vendor informs you that the previous years accounts show a gross profit of 18.5% and asks you to apply this figure to your calculations. (a) Would you comply with this request? If not explain how you would calculate the value of stock. (b) Give an example of how you would present your valuation, using the following figures (which include VAT where appropriate) Retail Value Gross Profit Percentage Tobacco 2244.25 8% Newspapers 1385.00 20% Magazines 950.00 35% Wines/Spirits 2491.00 18% Toys 799.00 40% Cards 975.25 50% Household 470.00 20% Groceries 1080.00 20% Confectionary 1034.00 21% Your client’s brewery informs him that cost prices are to increase by 2p on beer and 3p on Lager (excl. VAT.) per pint. He is advised, in order to maintain cash margin retail prices, to increase beer by 3p and lager by 4p per pint. Would you agree with this recommendation? If not, what would your advice be? The normal overall gross profit is 47%. A client asks you for advice on what profit margin would be achieved if cigarettes were sold from machines rather than from behind the bar. Using the current report, as detailed below, calculate what the margin would be. Sales at Cost £

Draught beer Bottled/Canned beers Minerals Spirits Liqueurs Cigarettes Allowances

Sales at Retail £

4768.72 1450.17 623.37 1466.19 315.15 1197.81 9821.41

10123.72 3582.30 2940.72 5178.75 1080.22 1506.24 24411.96 (720.27) 23691.69

Revenue 23423.07 Surplus/Deficit (268.62)(1.15%) Estimated GP - 51.3% Actual GP - 50.7% 14. Your valuation as at 26th September 2000 is £7544.62. Purchases for the five days up until the end of the month are £2714.80 and takings (exclusive of VAT) £5349.88. Assuming a normal gross profit of 54.7% prepare a valuation as at 1st October 2000. 15. What is a cash reconciliation? Prepare an example, using the following information. If you found differences, what action would you take? Use the following figures as a basis for your example £ Till floats 300.00 Bankings 4000.00 Petty cash 573.96

Answers to November Crossword

A Slightly BiggerCROSSWORD for Christmas Across 1 Some may have this with 17 across (10) 6 Poetless sheath for crust. (4) 9 Transporters about seaman with golf clubs. (10) 10 In Doctor Alan’s examination. (4) 13 Prohibiting blockaging. (7) 15 Favourite endless bread propellent. (6) 16 Canine mothers doctrines. (6) 17 Seasonal fare. (9,6) 18 Satins smears smudges. (6) 20 We hear the finish to associate. (6) 21 Sharing concoction to embellish. (7) 22 Zapped around diced. (4) 25 Match retainer looks after the birds. (10) 26 Hear needlework and again it’s mediocre. (2, 2) 27 Daisy sifts around to become let down. (10)

A bottle of Scotch to the first correct answer pulled on 29th December from among those sent to:Rosemary Cottage, Green Leas, Chestfield, Kent, CT5 3JY

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Down 1 Musician sounds like a dog. (4) 2 Pop both ways. (4) 3 Clear point mixture for breakfast. (6) 4 Arrival rollers is just not quite what you get before Christmas. (6.9) 5 Nudger around for a verb acting as an identifier. (6) 7 On the bill, cash for pageants. (10) 8 Small Alan in bus market for rail. (10) 11 Steps in vessels for far away voyages. (10) 12 These people do not necessarily need 11. (10) 13 In the act of overseeing. (7) 14 This big man hit goal perplexed. (7) 19 Little Sally before noon and I make Italian food. (6) 20 An aroma upwards. (6) 23 Votes stop about. (4) 24 Extra yield inside platter. (4)

The Magazine of the Institute of Licensed Trade Stock Auditors

Liquor and food takings (current week) 4795.27 Debtors Ledger paid (current week) 965.00 Added to Debtors Ledger (current week) 495.00 Cash in hand 538.47 16. At the end of the year, a client’s Profit and Loss Account shows a Gross Profit figure which differs from yours by 6%. What could have caused this, and what actions would you take? 17. A cigar cabinet has been delivered during the stock period which contains the following cigars at the stated retail prices:150 Hamlets selling at .58p each 50 Hamlets Specials selling at 1.15p each 100 Hamlet Miniatures selling at 3.00p per packet of 10 50 Castellas selling at 1.15p each 96 Panamas selling at .48p each The total cost of the cabinet is £204.86 plus VAT. Indicate how you would calculate the cost price of each cigar. 18. (a) What are the two most popular wine measures used and what yields would you use for each of the following using these measures. 75 cl bottle 3 litre box 10 litre box (b) Give Country of origin for the following wines, where French give region of France. 1. Margaux 2. Zinfandel 3. Casablanca 4. Rioja 19. At the premises where you normally carry out monthly stocktaking, and where the results are generally good, you suddenly and unexpectedly find a deficit of £800.00. List 10 methods you would use to identify the cause(s) of the deficit. 20. Explain the difference between invoices, delivery notes and statements. As a Stocktaker, how would you deal with each of these and for what purposes would you need them? Whatare credit notes, and how might they affect your stock result?

The Magazine of the Institute of Licensed Trade Stock Auditors

Continued from back page twin harbour and is a reminder of more violent times. The Castle’s place in history was recorded in 1214 when it was besieged by King John. Edward II sought refuge here after his ignominious defeat at Bannockburn and Mary, Queen of Scots stayed with Bothwell a few days before she surrendered to her rebellious nobles in 1567. Dunbar Castle was wrecked during Cromwell’s campaign to subdue the Scots in 1650, but the town has many beautifully preserved historic buildings including the 17th. century Town House and John Muir House, birthplace of the great 19th. century conservationist who established America’s first National Parks. Belhaven — Scotland’s oldest surviving brewery The Belhaven Brewery can lay claim to being the oldest surviving brewery in Scotland and one of the oldest in Britain. It can trace its direct history back to the year 1719, and it is probable that a brewery had existed on the site since at least the Middle Ages, as the two wells and some of the vaults in the brewery are known to date from before the 16th. century. Benedictine Monks — noted brewers of ale King David I of Scotland had gifted the Isle of May in the Firth of Forth to Benedictine Monks as early as 1150, and over the next few centuries they colonised Fife and the Lothians. In the vicinity of Dunbar, they were granted lands at the nearby harbour of Bele, later known as Belhaven. The monks worked the land, planted crops, dug wells and brewed fine ale. The land

on which Belhaven Brewery now stands became known as the Monk’s Croft. By the 16th. century, the tradition of brewing was firmly established at the site, for records exist showing that Belhaven ale was supplied to the Franco-Scottish army which was bent on invading England in the 1550’s, and which at the time was garrisoned at Dunbar Castle. Belhaven ale was “..... the Burgundy of Scotland; and famed as Bavaria is for its strong beer, it cannot produce the like ....”. Dudgeon’s malting reputation Much of the success of Belhaven Brewery during the 1800’s was due to the reputation of the quality malt produced by Dudgeons. This production was a major part of the business and the main reason why the Brewery survived because, by the early 20th. century, most of the smaller Scottish ‘country’ brewers had succumbed to the competition from their larger urban counterparts. Ellis Dudgeon died in 1876 and was succeeded by his son-in-law, Alexander Hunter. Much innovative expansion took place under his direction until his tragic accidental death led to his young son, Ellis Hunter taking over. A century of struggle The production of Belhaven beers had declined at the turn of the century but the supply to local military establishments during, and after, the First World War had kept the Company going. The Second World War had brought production restrictions but in 1944, in anticipation of the coming peace, Dudgeon and Co. became a private limited company. The 1960’s were the years of brewery takeovers and closures throughout the country, and it is probable that only Belhaven’s small

Merchandise The following are available through the Institute Goods Received Pads - £7.00 Bar Requisition Books - £5.50 Dipsticks - £18.50 “Taking Stock” books - £18.00 Hydrometers - £70.50

All prices include VAT (where applicable) and postage 10% discount to Associates and Members 15% discount to Fellows Discount only applies to merchandise

size, in brewing terms, and the fact that they were primarily maltsters, saved them from the predators. In 1964, Ellis Hunter Dudgeon died, aged 87, after sixty years with the firm, to be succeeded by his son ‘Sandy’ Hunter. It should be noted that for a period of 245 years, the Belhaven Brewery had only six proprietors or Managing directors. Very few, if any, companies can boast such continuity of control and management over so many years. By the early 1970’s, competition from the larger automated maltings was putting pressure on Dudgeons but Belhaven beers had an excellent and growing reputation. the solution should have been to completely re-equip the brewing side of the business at the expense of malting but the potential financial cost of this was beyond the resources of a modestly sized family firm. The arrival on the scene of entrepreneur Gordon Currie had bought much needed financial investment but even though some modernisation had taken place, by the end of the 70’s the Brewery was barely braking even. A young management team under the Chairmanship of Sandy Hunter began to make its mark but the chequered recent history of Scotland’s oldest brewery was still to unfold when, in 1989, Belhaven was bought by London-based Control Securities. however, in 1993, its employees successfully engineered a management buy out of the Company. The century of struggle for Belhaven Brewery ended happily as it continues producing award-winning beers, supplying all its 100 managed houses and an extensive free trade, with cask beer throughout Scotland.!

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INSTITUTE EXAMINATIONS These will be held on March 15th 2001 in Ilkley Please contact the Secretary for details

We have two web sites this month. The first a seasonal site at www.north-pole.co.uk. with Christmas facts, jokes, cards, Advent Calendars,Christmas shopping and much more.

This month visit the web site of the Gin and Vodka Association which you find at http://www.ginvodka.org with manyinteresting facts about gin and vodka, the manufacturers and brands.

CLASSIFIED ADS.

Cost 50p per word - maximum 100 words. Members free of charge Call 01227 794714 to place an advertisement

LIQUOR STOCK AUDITORS WHERE ARE YOU? Young fast expanding Company needs you this company has vacancies for stock auditors experienced in any of these areas STOCK AUDITING with on-site result EPOS Crown management systems Food stock auditing We need people with good personalities and depth of relevant knowledge Good package with car Call us now on 01403 711541 or preferably email us on office@davijaq.com with you current experience

Have your Classified ad. here Here

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For marketing assistance, web site design, advertisement design etc. Call 01227 794714 Fax 0870 063 2925 email info@acmarketing.org

The Magazine of the Institute of Licensed Trade Stock Auditors

WEB SIGHTS OF THE MONTH

The Magazine of the Institute of Licensed Trade Stock Auditors

The Breweries of Britain A Series by Trevor Knight Part Twenty-One

Belhaven - Dunbar, East Lothian

he gentle countryside of East Lothian and Berwickshire is a richly productive corner of Scotland that is often referred to as the ‘Garden of Scotland’. Large farms cover this area between the Lammermuir Hills and the Firth of Forth and narrow high-hedged lanes thread through prosperous villages with broad greens. The A1 is the main east coast road from England to Scotland and links the two capital cities of London and Edinburgh. Between Edinburgh and the English border, the road passes through this scenic and historic countryside but the many ruined castles amid this tranquillity bear witness to a grimmer past. East Lothian is the sunniest and driest area of Scotland and has been a popular holiday centre for centuries. There are many sandy beaches along the Firth of Forth, with almost invariably, golf courses behind them; for East Lothian is the birthplace of golf with a tradition going back to the 16th. century.

The coastline begins gently in the west with grassy dunes near the estuary of the River Esk. Deriving its name from the mussel beds that still exist, the bustling town of Musselburgh is only six miles from Edinburgh. Further east the coastline is more rocky culminating in the 300 ft. St. Abbs Head. Just over a mile out at sea from the popular resort of North Berwick is

Bass Rock. This nature reserve is a breeding colony for thousands of gannets which wheel endlessly round the 350 ft. rock and its neighbouring islands. The ancient Burgh of Haddington is the county town of East Lothian. A Royal Burgh since the 12th. century, this bustling market town has a fine architectural and historical heritage. It still retains many of the 12th. century property boundaries together with many listed 17th. and 18th. century buildings which are interspersed with green spaces, courtyards and alleyways. Dunbar — a fortified town since the Middle Ages The history of Dunbar can be traced as far back as the pre-Roman period. It became a Royal Burgh in 1370 and was one of the most important fortified towns during the Middle Ages. The ruins of Dunbar Castle stand guard over the town’s

The range of cask conditioned ales available from Belhaven include:(Tasting notes courtesy of the Brewery)

Continued on page 10

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