FAMILY BREWER ARKELL’S CELEBRATES 180 YEARS IN BUSINESS

Even a pandemic couldn’t call time on their brewery – now directors George and Alex Arkell are full of optimism as they celebrate the brewery’s 180th birthday

By Nicky Godding, Editor

On March 23, 2020, at the height of the Covid pandemic, prime minister Boris Johnson told us all to stay at home.

In pubs, restaurants and hotels across the land (and probably in every landlord’s heart), the lights went out.

For 178-year-old family brewery Arkell’s, with almost 100 pubs across Gloucestershire and the Thames Valley, and responsible for hundreds of livelihoods, it was a looming disaster.

Managing Director George Arkell, 44, said: “The First or Second World Wars couldn’t close our pubs, but Covid did.”

George’s brother Alex, 37, added: “The brewery’s priorities were how long the business could survive with no income, and looking after our staff and landlords.”

George, Alex (Head Brewer), their father James (now Chairman), and cousin Nick are the current family custodians of the brewery.

“For our 178-year-old business, to go from being profitable to discussing the prospect of just months before we might have to close was intimidating,” Alex added.

The furlough scheme announced 10 days later was probably the reason that the brewery is able to celebrate 180 years in business this year.

Sitting with them in the biggest pub they’ve ever built, The Strawberry Thief in North Swindon which opened last year, they don’t particularly want to look back, preferring to celebrate 180 years of brewing beer and running pubs.

As George says: “Having survived almost the worst, we now feel we’ve got a bit of body armour on.”

The first few frightening weeks of lockdown

Before we talk more about one of Britain’s most historic steam breweries, which owes its existence to the great engineer Isambard Kingdom Brunel, we chat more about those first few weeks of Covid lockdown.

“Having furloughed practically all staff, we needed to make sure our tenants understood the government’s guidance, which was changing almost daily,” said George.

Alex added: “We collected all unsold beer and gave our landlords full credit. It was expensive, but the right decision. Most suppliers also took back their unopened beer, wines and spirits too.”

“I hitched a flatbed trailer to my car,” said George. “Alex and our operations director Craig Titchener took the brewery vans. By visiting our landlords, even socially distanced, we could say ‘don’t worry, we’re here, you’re not alone’.”

The brewery didn’t charge rent while the pubs were closed. “Our landlords had no income,” said George. “I’ve blocked out how much rent we wrote off, but it was the responsible thing to do because we had the deeper pockets.”

For years, there has been much discussion about tied tenancies which many family breweries, including Arkell’s, operate. In the tied tenancy model, a tenant leases their pub from a brewery for a lower rent in return for buying its beer, sometimes at a higher price. However, for many landlords the tied model was a lifesaver during lockdown. Arkell’s tied tenancy agreements also usually include building maintenance, another weight off tenants’ shoulders.

“It proved that the long-controversial tied model works,” said Alex. “We took the hit rather than our tenants.”

With no pub income, the brewery switched to home deliveries, which kept George and Alex busy – even James pitched in.

“We had so little cash,” said Alex. “But George led with optimism. We had to make everyone feel this wasn’t the end. We had to come in every day.”

George added: “Alex and I ate lunch sitting on pallets in the empty brewery yard –sandwiches, crisps and a pint of beer.”

Planning the future with a pint in their hands

It was during their lonely brewery lunches that the brothers talked about the future.

“Just before lockdown we had been about to press the red button on our first newbuild pub .for more than 15 years,” said George.

Covid had put everything on hold, but by the second or third lockdown, George wanted to get on with the project.

“It was a huge risk. Everything could have gone wrong.”

It didn’t, although their financial director Barry Russell had a few sleepless nights.

Arkell’s Strawberry Thief in Swindon, named in celebration of 19th century textile designer William Morris who lived at Kelmscott Manor a few miles away, opened in time for last year’s Queen’s Jubilee and is the biggest pub Arkell’s has ever built.

“You’ve got to build something pretty large to make the numbers add up,” said George.

The pub, built like an old barn, is beautiful. There’s a proper bar, high tables for drinkers, booths for dining and squashy sofas. There’s also a garden big enough for 500 people.

“Customers want to see what’s going on and feel the action, but the Strawberry Thief doesn’t feel like a big open space, it’s as cosy as our traditional pubs,” said Alex.

The brewery recruited young couple Tom and Mairead Titcombe as the pub’s first landlords.

“They’ve got a great sense of community,” said George “At other pubs they’ve run for us they’ve put on markets, booked local bands and raised money for good causes. We give them lots of support to create a community pub where everyone feels comfortable.”

What about the rest of the Arkell’s pub estate, which ranges from small one-bar pubs to larger pubs and town centre hotels?

George acknowledges that costs have risen sharply, but customers are going back to the pub.

“Yes, they’re being more prudent and go where the beer, atmosphere, food and staff are good, but we all want that social network, whether it’s the church, local football club, or a pub.”

Alex added: “Trade has changed, but our beer sales are good.”

Using the best tools for the job

It’s helped that Alex has invested in new brewing equipment over the last few years.

“Brewing consistently good real ale is difficult for any brewery, but we use the best equipment,” said Alex. “We also brew more keg beer than cask now, because it’s what the market wants.”

George added: “Our brewhouse has still got the old copper mash tun which chuffs away with steam leaking out all over the shop, but it’s now sitting alongside our shiny, stainless steel mash mixer.”

But the traditional method of brewing beer at Arkell’s won’t change, says Alex.

“We are much more manual than most other breweries. The brewhouse investment has been more in downstream pipework, tanks that are easier to clean, new casks and kegs.”

The lucky number for Arkell’s is 100

Arkell’s owns 95 pubs, and that number won’t change much either, says George.

“About 100 pubs is right for the size of our brewery. We visit them regularly and I know all the tenants.

“We’d rather invest in our pubs and help our landlords maximise opportunities.

“For the landlord who knows what they’re doing it can still be a profitable business,” he continues. “Don’t get me wrong, for the turnover our pubs are achieving, we should all be making more profit, but we just have to adjust to the new normal.”

And 2023 is a year of celebration. The brewery is hosting regular brewery tours for the first time in its history and running an anniversary pub trail. Later this year it’s holding a big 180th birthday party.

“There aren’t many breweries left doing what we do,” said Alex. “Our brewery is beautiful and we want to share it.”

What’s next for this brewing gem?

“We have pubs across Gloucestershire and down the Thames Valley but Swindon is our heartland. It’s growing and we want to grow with it,” said George.

“While demographics and what people want from their pubs change – we adapt to meet that need. Dad often reminds me that in the 1980s not all pubs did food or wine. And if you wanted to take children into a pub, the landlord needed a special children’s licence.”

“And smoking was everywhere,” adds Alex.

If James, George and Alex have their way, Arkell’s Brewery won’t look much different in 100 years, and George is a true optimist.

“If energy and food prices come down, we will be back to where we were before Covid.”

That’s something to which we can all raise a glass.

Pint-sized history of Arkell’s Brewery

Arkell’s brewery was established as an offshoot to the family farm in 1843 when Brunel was building his Great Western Railway locomotive works in Swindon.

John Arkell started putting his barley to better use brewing beer to satisfy Brunel’s workers in the hot engine sheds.

Over the years John built a brewery, now considered one of the finest examples of a Victorian steam brewery anywhere in the world, and opened pubs across the town. While Swindon’s historic railway works closed in the 1980s, Arkell’s has survived and thrived.

The Arkell family still work at the brewery including chairman James, his sons George (managing director) and Alex (head brewer) and their cousin Nick Arkell who heads up the brewery’s thriving wines and spirits department. They work alongside generations of other local families brewing real ale and looking after pubs across Gloucestershire and the Thames Valley.