Summary Why cask is a source of profit Top tips to profit from cask. Introduction by Bruce Dickinson. The Cask Ale Boom

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3 The Contents CONTENTS Summary Why cask is a source of profit Top tips to profit from cask Introduction by Bruce Dickinson The Cask Ale Boom Cask ale is in sustained volume growth Value growth also remains consistently healthy A remarkable success We expect this growth to continue Why is Growth Happening and Why Will it Continue? Macro Trends Sector Trends Market Trends How Cask Ale s Growth Boosts Pub Profits The affluent drinker The cask ale value chain How To Grab A Share of Cask s Growth Get your fair share (or more!) of existing cask drinkers Help create more cask drinkers Appendices The cask ale market at a glance The cask ale drinker at a glance Contacts and further information p4 p6 p8 p12 p18 p24 p38 3

4 Summary SUMMARY - WHY CASK IS A SOURCE OF PROFIT Cask ale is in sustained volume growth, significantly outperforming the On Trade Beer Market. Cask is forecast to hit 20% of on-trade beer by hugely significant when beer accounts for 64% of the average pub's wet sales. Cask ale cashes in on what people want from pubs today - a premium experience that can't be replicated at home. Cask drinkers visit the pub twice as often as the average person, and influence the choice of pub in mixed groups. The cask ale drinker spends 967 a year in pubs - almost double the average spend per person. Cellar management training improves yield by at least 7%. Staff training on how to keep and serve cask ale perfectly is now available free online via Cask Beer Uncovered. 967 average cask drinker's annual spend in pubs Cask ale is in sustained volume growth 20% cask's projected share of on-trade beer by

5 Summary SUMMARY - TOP TIPS TO PROFIT FROM CASK Promote Your Offer Cask drinkers use social media and expect their pubs to. If they like your pub, they ll tell their friends. Most people don t know much about cask ale. Encourage trial through education with tastings notes, Try Before You Buy etc. Invest in Staff and Beer Quality Staff training is the easiest way to improve returns from cask. Improve quality and therefore sales. Creates genuine enthusiasm, meaning they stay longer and sell more beer while they re there. Training on cask ale is available FREE via the Cask Beer Uncovered e-learning programme. Allow your staff to train you! They may well have skills that can promote the range and the pub more broadly. Apply for the Cask Marque Award. Hold a Beer Festival Encourages trial amongst non-cask-drinkers. Gets rare cask drinkers into the pub, encouraging them to see the pub as the best place for cask. Emphasises cask's diversity and range the key reasons people drink it. Gives occasional pub-goers a reason to visit more often. Invest in Glassware Cool, stylish glassware helps address the too masculine barrier for some female drinkers. Drinkers like a choice of measures - e.g. new beers in a half pint, strong beers such as IPAs in two-thirds measures. Branded glassware premiumises the drinking experience. Consider bespoke pubbranded glassware. Stock a Broad Range Flavour is a huge social trend as well as the main reason people drink cask ale. Most people drink cask occasionally. They ll drink it more often if it can satisfy their curiosity. Bitterness is a significant barrier for nondrinkers. A broad range of styles helps blow that perception away. 5

6 Introduction INTRODUCTION By Bruce Dickinson I ve always loved cask ale - and the ambience of drinking cask ale in a traditional British pub. I like a beer that punches above its weight in terms of flavour, a beer that you can enjoy a couple of pints of at lunchtime and still feel okay in the afternoon. 6

7 Introduction When we re on tour, cask ale is one of the main things I miss. That s one reason why I was delighted to work with Robinson s to create Trooper. Their heritage and Iron Maiden's global reach has enabled it to be one of the UK's premier ambassadors of British Ale it s now doing good business in 50 different countries. Maybe initially the band played a big part in introducing it to people, but Iron Maiden fans wouldn t drink a duff beer just because we asked them to. They have told us they like TROOPER s flavour and balance and it has now passed our wildest expectations. This proves to me, not that it needed proof, that British ale is a drink with global appeal. Maybe we forgot that a decade or so ago, when ale seemed a bit dog-eared and old-fashioned. But now, cask ale is regaining its rightful place on the bar, claiming back its birthright as the very DNA of a uniquely British tradition. It is great to read in the Cask Report that cask is on track to account for one in five beers in pubs by 2020, and it is interesting to see that cask ale drinkers proper pub regulars put almost twice as much money over the bar as other people. Maybe it s only when you spend so much time touring the world that you realise just how special the British pub is. This report shows that, by boosting pubs profits, cask ale is playing a vital role in helping this national institution not just survive, but also thrive. I'll drink to that - wherever I am! Cheers Bruce Dickinson Brewer and Iron Maiden Vocalist September

8 The Cask Ale Boom The CASK ALE Boom Cask ale is in sustained volume and value growth, with successful pubs stocking more brands. 8

9 The Cask Ale Boom CASK ALE IS IN SUSTAINED VOLUME GROWTH (YTD) Cask beer Total beer market On-trade beer Cask outperformed on-trade total beer by 1.3%. Cask grew by 0.2% in 2014, versus a decline in total on-trade beer of -1.1%. Cask therefore outperformed total beer by 1.3%. Cask outperformed on-trade beer by 3.4%. Cask grew by a further 0.5% in the first six months of 2015 versus an on-trade beer decline of -2.9%. Cask therefore is outperforming beer by 3.4% in 2015 to date was the third consecutive year of cask volume growth. Cask accounts for 17% of all on-trade beer. Cask accounts for 57% of all on-trade draught ale (versus 43% keg). 57% 3.4% cask's share of on-trade ale cask outperforming total on-trade beer 17% cask's share of on-trade beer 9

10 The Cask Ale Boom VALUE GROWTH ALSO REMAINS CONSISTENTLY HEALTHY Cask ale grew by 1.6% in value terms over the past year - well ahead of inflation. A REMARKABLE SUCCESS The value of the cask ale market is 1.8bn - a 29% increase from 1.4bn in 2010 and by 2020 it will be worth 2.3 bn. Cask ale is only available in the on-trade. With overall on-trade beer performance significantly lagging the resurgent off-trade, and up to 29 pubs a week closing, cask ale is bucking the trend. Pubs that stock cask ale are doing significantly better than equivalent pubs that don t. The number of UK pubs continues to fall but cask ale pubs fair better and the net distribution of cask ale is increasing. More pubs are stocking a greater number of cask ales How many different cask ales do you stock over a fourweek period? (% of pubs) Research using CAMRA s WhatPub database and CGA-CAMRA Pub Tracker shows that cask is now available in 70% of British pubs. Many cask pubs are not just surviving they re booming and in successful pubs, cask ale is an increasingly vital part of the offering. Among those pubs that stock cask ale, rate of sale of cask is steadily increasing as is the number of brands stocked. However: It s important to remember that stocking too many cask ales can have an adverse effect on quality and seriously damage sales and profitability. A useful rule of thumb is not to stock an additional handpump unless existing pumps are selling a firkin (nine gallons) in three days or less Source: CGA Strategy 10 Up to 3 3 to 6 7 or more

11 The Cask Ale Boom THIS SUCCESS IS SET TO CONTINUE Cask Share of Market Cask to achieve 20% of on-trade beer and 70% of on-trade ale by % on - trade beer 45% on - trade ale 17% on - trade beer 57% on - trade ale 20% on - trade beer 70% on - trade ale Source: British Beer and Pub Association If current trends continue we expect cask to account for one in five on-trade beers by This is based on two things: The continued growth in cask volume. A continued overall decline in total on-trade beer. As overall beer volumes in the on-trade decline, cask is set to grow its share by 25% over ten years.even in modest growth, it's increasingly important for the success of the pubs that survive. 20% of all pub beer by 2020 = an essential source of profit for publicans 11

12 Why is Growth Happening? Why is GROWTH Happening? AND WHY WILL IT CONTINUE? To understand why cask ale is more relevant and appealing than it has been for years, we only have to look at trends in society. Here s a quick analysis of three different levels of trends that interact and affect each other to create the perfect conditions for cask ale s growth. 12

13 Why is Growth Happening? MACRO TRENDS Some relevant political, economic, cultural or social forces influencing our behaviour. Macro Trends Macro Trends Political, Economic, Cultural, Social Sector Trends Eating, Drinking, Going Out Market Trends Beer, ale Some relevant political, economic, cultural or social forces influencing our behaviour. Premiumisation In times of austerity people look for premium versions of everyday treats you might not be able to afford that holiday, but you can afford to treat yourself to a Starbucks instead of a Nescafé. The growth of Aldi and Lidl at the same time as the growth in premium restaurants, delicatessens and farmers markets all at the expense of mainstream supermarkets demonstrates a flight from the middle, where people buy cheaper versions of commodities and use the money saved to indulge in premium versions of discretionary treats. Health We re becoming more health aware whether it s fat, carbs, sugar, the dangers of obesity, smoking or over-indulgence of alcohol, we are being educated about how to live longer and healthier. Younger beer drinkers increasingly balance their indulgence with an interest in sport and exercise. Bored of Big Brands Yes, we all shop in big supermarkets and buy big brands. But in increasing numbers we don t feel good about it. Many especially the affluent middle class audience that make up the majority of cask drinkers feel choosing small, independent brands is a way of fighting back, sticking up for the little guy, expressing individuality. Real world nostalgia Every trend comes with a counter-trend. The more time we spend online and in virtual worlds, the more we hanker after the real, the authentic, the local. This trend will continue to drive interest in local, traditional produce. 13

14 Why is Growth Happening? SECTOR TRENDS In response to macro trends, some broad trends in our eating, drinking and socialising behaviour Flavour Flavour is consistently cited as the main reason for the appeal of cask ale. But beyond that, if we look at sales of cookbooks, the success of celebrity chefs, shows like Masterchef and Great British Bake Off, and the rise in different ethnic cuisines and restaurants, we have permanently thrown off the old stereotype that the British are not interested in food as a sensory experience. Less But Better The combination of premiumisation and health is creating a culture of less but better in food and drink. We may not indulge as often as we did, but when we do, we want it to be a truly special experience. Localness and Authenticity Throwing off corporate brands and attempting to re-engage with the world immediately around us drives interest in small, artisanal producers using traditional methods. If we know where something comes from, and we see the person who makes it, it feels more real and meaningful. The Experience Economy The search for something truly different, premium and real means that brands in any economic sector now feel the need to offer not just a product, but a whole experience around it. Restaurants have an increasing sense of theatre, and festivals are where an increasing number of people explore their tastes be that food and drink, music or literary festivals. Macro trends Premiumisation Health Bored with big brands Real world nostalgia Sector trends Flavour Less but better Localness & authenticity The experience economy Market trends Growth of the micro brewries Premium pub experience Growth of craft beer Growth of beer festivals 14

15 Why is Growth Happening? MARKET TRENDS How broad trends and sector trends show themselves in the beer market and create the conditions for cask ale growth Growth of Microbreweries The most curious aspect of the British beer boom is that overall, beer volumes have fallen significantly over the last decade, while the number of brewers serving the market, and the variety and range of beers they produce, has boomed. Since Progressive Beer Duty introduced tax relief for small breweries in 2002, the number of breweries in the UK has trebled. There are many factors driving this shift from a few big brands to many small ones, including the preference for flavour, localness and authenticity, and the backlash against the homogeneity of global corporate brands. It shows no sign of slowing down. 1,700 number of breweries in the UK 4 number of new breweries opening every week 11,000 estimated number of different beers in production by UK breweries, including seasonals and limited editions 161 CAMRA beer festivals in % people who tried cask ale for the first time at a beer festival 41% UK alcohol drinkers who say a beer festival is the best place to drink cask ale Growth of Beer Festivals Once the preserve of die-hard real ale fans, the traditional beer festival has grown in popularity. At the same time, new formats of beer festival that stray from the established tradition are booming across the country, showcasing craft and international beers. Beer festivals have emerged as a key occasion for people trying cask ale for the first time, and therefore play a huge role in recruiting people to cask. 15

16 Why is Growth Happening? The Premium Pub Experience Most people now go to the pub much less than they once did there s a whole new range of leisure alternatives out of the home, while the home itself is becoming more popular as a place to spend leisure time. But there s a flipside to this when people do go to the pub, they re looking for something they can t get at home or from the supermarket. Cask ale can t be replicated at home, so along with cocktails, premium spirits and obscure craft beers, it s part of the less frequent, but much premiumised, pub experience for a growing number of people Average amount spent by the typical person on a pub visit 1 1: YouGov survey for the Cask Report 2: Visa Europe UK Expenditure Index 51% pub-goers who visit the pub once a month or less 1 9.2% growth in average consumer spend in hotels, pubs and restaurants in Growth of Craft Beer There s a widespread misconception in the beer and pub industry that craft beer is (a) confusing and (b) completely different from cask ale. Neither is true. A majority of the UK population say they have heard of craft beer, and of those, almost half are confident they know what the term means (figure 1). The Cask Report has always argued with support from prominent craft brewers in the Uk and US that cask beer is in fact a perfect example of craft beer. Cask and craft are not the same, but there is a significant overlap. CGA Strategy has defined craft beer not with a broad definition - which is always problematic - but by evaluating each brand individually and selecting beers from particular breweries and/or beer styles that are new and innovative, to create a segment of the beer market that is craft. These brands cross all dispense formats - cask, keg, bottle and can. Cask is by far the biggest format, accounting for almost two thirds of total craft beer volume (figure two). When added together, these craft beers account for 8.4% of all on-trade ale (figure 3) and have doubled their share in the last two years. Cask ale is the dominant format of craft beer. And the rapid growth of craft beer is making a huge contribution to the success of the broader cask ale market. 16

17 Why is Growth Happening? 1 2 Source: YouGov survey for CAMRA Have you heard of craft beer? Craft beer volume in pubs by pack format Source: CGA Strategy Yes, and I know what it is 28% Yes, but I don't know what it is 30% No, i hadn't heard of it 42% Bottle/can 13% Cask 64% Keg 23% 3 Craft beer's market share of beer and ale Share of total on-trade beer Share of total on-trade ale population 6.7% 8.4% Source: CGA Strategy 4.2% 1.3% 1.5% 0.6% 0.7% 0.9% 2.1% 1.6% 2.5% 3.2% % of on-trade craft beer is cask ale 8.4% craft beer's share of total on-trade ale across all formats 40% cask ale drinkers who also drink craft in keg format 17

18 How Cask Ale s Growth Boosts Pub Profits How CASK ALE'S Growth Boosts Pub Profits We ve always known that cask ale drinkers tend to be affluent and curious, and are important to pubs. But new research shows that they spend more in the pub than any other kind of drinker they are the drinkers keeping pubs profitable, and are too lucrative to be ignored. 18

19 How Cask Ale s Growth Boosts Pub Profits THE AFFLUENT DRINKER In the nine years of the Cask Report we ve consistently found that cask drinkers are affluent and upmarket. Our latest research confirms this yet again. 61% of cask drinkers are social grade ABC1 Age-wise, they re in line with the general population Geographically, they re in line with the general population But this alone doesn t guarantee they re valuable to pubs. It s their behaviour that makes them particularly interesting. THE CASK ALE VALUE CHAIN Cask ale drinkers VISIT MORE OFTEN ARE MORE LOYAL SPEND MORE MONEY BRING OTHER PEOPLE 19

20 How Cask Ale s Growth Boosts Pub Profits 1. Cask ale drinkers visit pubs far more often than other drinkers. Cask drinkers are more than twice as likely as pub goers to visit the pub once a week or more Percentage who visit the pub once a week or more 50% go once a week or more, compared with 29% of beer drinkers who don t drink cask, and just 23% of the adult population as a whole. Therefore, cask drinkers are more than twice as likely as the average person to visit the pub once a week or more. n.b. Only 9% of the population say they never go to pubs. For most people it s a rare treat. 35% say they go to the pub less than once a month. 2. Cask drinkers are more loyal to pubs Percentage of people who claim to go to the pub more often now compare to a year ago Would you say that you visit pubs for leisure purposes more or less often now compared to 3 years ago, or do you think it's about the same? 36% of cask drinkers say they are visiting the pub more often than they used to, versus only 12% average among the population as a whole. 50% Cask drinkers 29% Non-cask beer drinkers 36% Cask drinkers 23% Overall population 12% Overall poulation Source: YouGov survey for the Cask Report July 2015 Source: YouGov survey for the Cask Report July

21 How Cask Ale s Growth Boosts Pub Profits 3. They spend more money than anyone else Average Total Spend Per Year in Pubs cask drinker non-cask beer drinker wine drinker spirits drinker general population Source: YouGov survey for the Cask Report July 2015 Cask drinkers spend almost double the amount the average person spends in the pub each year. When asked how much they spend on a typical pub visit, cask ale drinkers cite a slightly lower figure than other drinkers. But because they visit the pub so much more often, they contribute a far higher amount to the pub s turnover than anyone else. While single purchases of wine or spirits may yield a higher margin than cask, which is priced lower, the weight of purchase makes the cask ale drinker more important overall. 1: Calculated by Cask Report by multiplying YouGov figures for mean number of days per year when pubs are visited by mean average total spend per visit (including food, drinks, snacks etc) 21

22 How Cask Ale s Growth Boosts Pub Profits 4. Cask drinkers in mixed drinking groups decide what pub to go to, bringing non-cask drinkers with them The cask ale offer varies from pub to pub more than other drink offers do and cask drinker are far more likely than other drinkers to say the choice of pub is theirs. Cask ale offers a more varied selection than other drinks, and cask drinkers see the quality and selection of cask ales as a shorthand of the overall quality of the pub. Cask drinkers are far more likely than other drinkers to say the choice of pub is theirs 74% say the person who does is always, often or sometimes a regular cask drinker 1 1: Calculated by adding all those who say cask drinker 'always', 'often' or 'sometimes' makes the decision Base: Cask ale drinkers who are unlikely to make the decision How likely is it that YOU make the final decision about which pub to go to rather than someone else in the group? 58% Cask drinkers General population 43% Source: YouGov survey for the Cask Report July 2015 Likely When a cask drinker says they do not make the final decision, 74% say the person who sometimes, often or always does make the decision is a cask drinker. 24% of non-cask drinkers say if there s a cask drinker in the group, they will make the decision about which pub to visit. 22

23 How Cask Ale s Growth Boosts Pub Profits Cask drinkers see the quality and selection of cask ales as a shorthand of the overall quality of the pub 23

24 How To Grab A Share of Cask s Growth How to Grab A Cask s SHARE OF Growth So cask ale is growing in volume, and cask ale drinkers spend more in pubs as well as bringing additional value. How can the typical pub get most benefit from the opportunities cask ale offers? 24

25 How To Grab A Share of Cask s Growth GET YOUR FAIR SHARE (OR MORE!) OF EXISTING CASK DRINKERS Cask ale drinkers are choosy about which pubs they go to. How do you get them to visit your pub rather than someone else s? 1. Look at why they choose the pubs they do Which of the following are important, in determining your pub choice? Atmosphere Price Food Décor Range of beers Range of cask ales Entertainment Cask drinkers General population Source: YouGov survey for the Cask Report July 2015 In every survey of what makes a pub special, atmosphere whatever that is comes out top above any tangible measure. Cask ale drinkers rate atmosphere even more highly. And they create atmosphere the regulars drinking real ale are a quintessential part of pubiness, helping differentiate the pub from other retail establishments. This proves that it s not enough to simply stock a good range of well-kept beers vital though that is there also has to be a feel to the pub that fits. 25

26 How To Grab A Share of Cask s Growth 2. Look at what they want from a cask ale range Cask drinkers want a mixed range of familiar and new When it comes specifically to cask ale, how important are each of the following in choosing a pub? Word of mouth Has my favorite brands Range of different beer styles Rotating guest ales Range of beers from small/regional Range of different beer strengths Ownership (e.g. branded, locally owned) Number of hand pumps on bar Source: YouGov survey for the Cask Report July 2015 Cask ale drinkers want a range that has various things going on. They want: Novelty AND old favourites. Permanent brands AND a rotating selection of guest ales. Tried and trusted brands AND beers from small local brewers. Their choice between these will depend on mood, time of day, and the last pint they had, among other things. But even if they don t try the latest guest or every brand on the bar, it s important to them that the choice is there. Ranging Strategy: Variety is about style as well as brands. A range of six cask ales that are all golden ales or pale ales between 3.8% and 4% from microbreweries may look diverse and eclectic from the pump clips on display, but it doesn t offer the drinker as much choice as it first appears. Cask ale drinkers enjoy a broad variety of different styles, including golden ale, IPA, stout, Mild and speciality beer. 92% of cask drinkers also drink craft keg ale. It s important to recognise how cask and craft keg work together, and how both represent quality and flavour in the drinker s eyes. The anti-keg real ale traditionalists may make a lot of noise in your pub, but they are an increasingly small minority. 26

27 How To Grab A Share of Cask s Growth Cask drinkers drink across a wide variety of styles and formats How often, if at all, would you say you ever drink the following beer styles? Stout 81 Standard bitter 79 Pale ale 72 Golden ale 76 Craft keg ale 76 Premium ale 75 Smoothflow 63 IPA 67 Lager 56 Mild 46 Porter 37 Speciality/Fruit Beer 36 Old ale/barley wine 24 Source: YouGov survey for the Cask Report July 2015 Base: All GB cask drinkers who have drunk beer in the last three months Score = Respondents who drink always, often or sometimes Pricing Strategy Drinkers are increasingly likely to accept a range of different price points for cask. While some cask drinkers are price sensitive, this has to be balanced against the search for novelty and flavour. A good range could offer options between 3 and 5 per pint, depending on style, ABV, scarcity and provenance. Our recommendation: Entry level brand priced equivalent to standard lager. Premium standard strength brand at a price premium to the above. Premium brand priced equivalent to super-premium lager. Craft brand that may be higher in ABV and/or unusual in style (possibly encouraged in smaller measures e.g. a two-thirds glass) to create affordability. Optimum presentation and serve Explore a range of different glassware options: People prefer smaller measures when trying a new beer for the first time. An attractive half-pint glass could increase rate of sale of new beers. Research among women who don t drink cask shows that presentation can be off-putting. Stylish glassware is essential in helping to win over new drinkers, regardless of gender. For example, using stemmed glasses when serving cask ale with food sends really positive cues about beer and food matching. Ensure every aspect of the serve is clean and professional - no one likes picking up a sticky, overflowing glass. 27

28 How To Grab A Share of Cask s Growth 3. Tell them about your offering Social media has been a key dynamic in driving the growth of interest in good beer. Another nail in the coffin of the idea of cask drinkers as old and fuddy duddy is the fact that they are more likely than average to use social media platforms. Cask ale drinkers and consumers are switched on to social media Percentage using social media platforms once a month or more Facebook Cask drinkers General population Twitter Linkedin Google+ Source: YouGov survey for the Cask Report July 2015 Base: All GB adults online 35% of cask drinkers use Twitter monthly or more Pubs NEED to have a Facebook page, and a presence on Twitter is encouraged. Ensure your pub is listed on the CaskFinder App which is used 70,000 times a month to find Cask Marque pubs. But it s not all about social media. Standard practice for marketing your cask ale range should include: In the Pub: Chalkboards displaying at least the name of the beer, style, price and ABV. Try Before You Buy preferably with small bespoke tasting glasses (shot glasses work for this). 28 Simple tasting notes, such as those provided by the Cyclops scheme. For larger ranges, a printed beer list with tasting notes and, if appropriate, food matching recommendations. Outside the Pub: Good relationships with your local CAMRA branch. Local press features and promotions. Events/relationships with other local food and drink producers, e.g. an event matching your beer range with pies made by a local baker. Clear signage outside the pub.

29 How To Grab A Share of Cask s Growth Social media has been a key dynamic on driving the growth of interest in good beer and drinkers expect pubs to be engaged with Facebook and Twitter. 29

30 Help Create More Cask Drinkers Help CREATE more cask drinkers 30

31 Help Create More Cask Drinkers HELP CREATE MORE CASK DRINKERS 1. Converting non - cask drinkers to cask drinkers You said you have never drunk real ale...which, if any, of the following are reasons for this? I just don't like the idea of real ale 33% It's a bitter drink Real ale is too masculine It's a flat drink (i.e. not carbonated) It's a warm drink It's fattening They do not serve it in my local bar/ pub There's too much choice of real ales, I don't know where to start It's unfashionable I need more information at the point of sale (e.g. how it's brewed, strength etc.) 7% 6% 4% 3% 3% 1% 1% 12% 17% Base: All those who have never tried real ale Source: YouGov Survey for CAMRA June 2015 It's old fashioned I don't know what brands of drinks are real ale Other Don't know 5% 7% 12% 24% 42% of the population have never tried real ale. Of those who have tried it, 88% say they still drink it. Most drinkers may only have it occasionally, but it seems clear that whatever barriers exist for those who have never tried it, they appear to be mainly unfounded when people take the plunge. Every time we research non-trialists, there are few specific hard barriers to trial. People simply don t think it s relevant to them, or have never been given a good reason to try it. Where specific reasons are cited, we can see ways to overcome them: It s too bitter it s one thing to try a hoppy pale ale and find it too bitter, but if you ve never tried it, how do you know? Cask ale isn t helped by bitter being a generic name. But we can: Refer to it as ale rather than bitter which previous research suggests is seen as an increasingly old-fashioned term anyway. Use the breadth of styles available to overcome perceptions of bitterness. Encourage trial via Try Before You Buy, tasting and sampling events. 31

32 Help Create More Cask Drinkers It s too masculine while this only scores 12% in the list of barriers to trial, if we assume that most people saying this are women, it becomes quite significant. While the number of women drinking cask ale has grown substantially in recent years, females still only account for 17% of all cask drinkers. To overcome this we can: Avoid retrograde ale brands with sexist pump clip imagery and names. Avoid patronising women by warning them about the strength or intensity of flavour of a beer, or asking if they re sure they want a whole pint, unless we would also say these things to men. Hold women-orientated beer tasting events, perhaps with one of the growing number of female beer sommeliers. 'Try Before You Buy' and sampling can overcome perceptions of bitterness etc. But the main task is to push against the soft barriers, where there is no specific reason why people have not tried cask ale. 20% of cask ale drinkers tried it for the first time in the last three years and that percentage is increasing. If we look at what made those people try cask for the first time, we can do more of it. Which, if any, of the following were the reasons why you first drank real ale? A friend introduced me to it 28% I'd heard a lot about it and decided to try it 20% I attended a beer festival and tried it there 16% I was given a sample in a pub 10% I tried 'craft' keg beer and then discovered real ale 4% My local pub started offering real ale 12% My local pub was promoting real ale 9% Other Don't know/ can't recall 12% 14% Base: All UK adults who ever drink real ale Source: YouGov Survey for CAMRA June

33 Help Create More Cask Drinkers Reasons for trial are a lot more specific than excuses for non-trial. We can see that: Word of mouth is the most important driver try rewards for people who encourage friends to try real ale for the first time? Beer festivals - hold one in the pub, or collaborate with other pubs to create an event. As ever, promotions and samples are also significant. 4% of all cask drinkers tried it for the first time after drinking craft keg a small number but, given the relatively small size of craft keg at the moment, still very significant. This proves that craft beer is recruiting people into cask. How often, if at all, would you say you drink real ale? 36 % 27 % 19 % 6 % 12 % 0 % Always Often Sometimes Rarely Never i.e. I've only ever tried it Base: All UK adults who ever drink real ale Source: YouGov Survey for CAMRA June 2015 once Don't know 2. Converting rare cask drinkers to regular drinkers Only 25% of cask ale drinkers claim to drink it always or often. For most, it s an occasional treat, probably something for real ale festivals, or occasions they visit the pub with other cask ale drinkers, or visit particular kinds of pubs. There s a huge opportunity to make cask ale more relevant to the majority of people who drink it. Getting the mass of cask ale drinkers to drink it just once or twice more often would yield huge volume growth. 33

34 Help Create More Cask Drinkers Cask ale overlaps with many other drinks Which of the following have you drunk in the last three months? Cask drinkers Wine Spirits Lager Cider Stout Smoothflow FABs 9 General population Source: YouGov survey for the Cask Report July 2015 People try cask ale because they are curious, and because they enjoy seeking out new flavours. So it s no surprise that they enjoy lots of other drinks too. For example, cask ale drinkers are almost twice as likely to also be wine drinkers. Cask ale can be positioned as a lower ABV alternative to wine. It is also (and sometimes more so): Diverse in terms of flavour and style. Complex and rewarding. Natural and has a sense of place. Complements a wide variety of foods. 34

35 Help Create More Cask Drinkers Which, if any, of the following are reasons why you have ever drunk real ale? It offers more flavour than other beer(s) I like to drink real ale that is brewed locally It's not as gassy as other beer(s) The range of beer styles available It has more natural ingredients It offers more choice than other beer(s) It's better value for money than other beer(s) It's a habit/ I always have It has less calories compared to other drinks The diversity makes it fun to drink real ale Other Don't know 2% 6% 8% 11% 13% 23% 20% 39% 35% 30% 32% 51% Base: All UK adults who ever drink real ale Source: YouGov Survey for CAMRA June % say a beer festival is the best place to try cask ale 51% say cask has more flavour than other beers Learn what appeals about the festival experience and bring that into the pub We could also learn from the experience of beer festivals. 41% say a festival is the best place to try cask ale, versus only 37% for a pub. Hold more cask ale festivals in pubs. Educate people as to why the pub experience of cask ale is, in many ways, even better than the outide festival experience (e.g. better cellaring environment). Learn what appeals about the festival experience and bring that into the pub: e.g. broad range, trying something new, active promotion of styles via chalkboards, beer lists and tasting notes. We could also look at the reason why people enjoy drinking cask ale, and amplify those: Flavour is top 51% say it has more flavour than other beers. 39% drink it because it is local the second highest answer. Diversity is also key it makes trying cask ale more fun than other drinks. These people like to explore! Not gassy, natural ingredients, range of styles and choice are the other significant factors. 35

36 Help Create More Cask Drinkers HELPING YOUR STAFF DELIVER MORE FROM CASK ALE Bar staff are the front line between the publican and the drinker. They are the face and tone of voice of the pub and can make the difference between loyal customers and people who drink somewhere else. The oft-repeated view in the trade is that it s not worth training bar staff because they just move on anyway. Sometimes this might be true, but it s also a self-fulfilling prophecy don t look after them and they ll definitely move on. Those pubs and companies that invest in training staff see them stay longer as a result because their jobs are more rewarding. Also, research has shown that cellar management training reduces wastage and increases yields from cask by at least 7%, creating a significant impact on the bottom line. That s why Cask Marque has launched Cask Beer Uncovered, a free online training service for handling and selling cask ale. Close to 3,000 licensees and team members from 20 operators registered from its launch in March 2015 until the start of August. The programme comprises five short online films which staff can watch at any time, followed by a multiple choice test. Staff who score at least 75% across all five modules can print off a personalised Cask Beer Uncovered certificate. Delegates can complete the modules either via their operator s training platform with CPL Online, or through the Cask Matters website ( Apart from basic training there are many other ways that successful operators get the most out of staff: Actively encourage or even mandate the tasting of each new beer that goes on sale. Take staff on visits to local breweries. Makes sure there is always someone qualified in cellarmanship on duty at any time. Use the skills young bar staff bring. For example: If someone is always on their smartphone, incentivise them to run the pub s Facebook or Twitter feed. They could even make short promotional films. If you have one member of staff who is very keen on cask ale, invest in their training and make them a cask champion, then use them to train up their colleagues. 36

37 Help Create More Cask Drinkers Cask Beer Uncovered is a great way of engaging team members with cask beer, telling them everything they need to know in bite-sized modules that are fun to watch and can be fitted into their working day. We ve had a good response from all the team members who have started the programme, and the licensees tell us they can see an immediate improvement in the customer s cask beer experience. Michael Lees-Jones, head brewer, J W Lees 37

38 Top Tips to Profit From Cask APPENDICES 1. The Cask Ale Market At A Glance Volume 2.23m barrels, or 642 million pints Volume grew 0.2% in 2014 Volume grew 0.5% in first six months of 2015 Value Cask ale is worth 1.8 billion Grew by 1.6% in 2014 Has grown by 29% since 2010 Distribution Cask is in 70% of UK on trade outlets Distribution is relatively steady in a shrinking universe of outlets Rate of Sale May 2015 average per pub per week, up from in June 2011 May 2015 average 24 gallons per pub per week, up from 22.8 gallons per pub per week in June The Cask Ale Drinker At A Glance Male 83% Female 17% % % % % % Social Grade ABC1 61% Social Grade C2DE 39% North 24% Midlands 18% East 8% London 14% South 23% Total England 88% Wales 3% Scotland 9% Facebook 73% Twitter 37% Linked In 26% Google+ 12% 3. Contacts and Further Information The Cask Report is supported by: The Cask Marque Trust Non-profit organization championing cask beer quality The Campaign for Real Ale (CAMRA) Europe s most successful consumer pressure group The Independent Family Brewers of Britain (IFBB) Body representing 29 of the UK s family-owned brewers The Society of Independent Brewers (SIBA) Representing over 825 small, local and independent brewers Adnams Suffolk-based regional brewer Caledonian Edinburgh-based regional brewer, now owned by Heineken 38

39 Top Tips to Profit From Cask CarlsbergUK Brewers of Tetley Bitter Charles Wells Bedfordshire-based regional brewer Fuller s London based regional brewer Greene King East Anglia-based regional brewer Marston s Operates five breweries and an estate of managed and tenanted pubs across the country. Punch Operator of around 3,500 pubs Robinsons Family brewers based in Stockport St Austell Cornish family brewery Wadworth Family brewery based in Devizes, Wiltshire The Cask Report is compiled each year by beer writer Pete Brown. In addition to the valuable help provided by the partners above, thank you to the British Beer and Pub Association, YouGov and CGA Strategy for their invaluable help in compiling this report. Copy-edited by: Frances Brace For press enquiries please contact: Frances Brace Red Flame Communications frances@redflamecommunications.co.uk Design by: Riley Communications & Eamonn Foy Tel: Photography: Photography by Frances Brace With additional material by Bill Bradshaw Tel: Data Sources YouGov Survey of 2,056 adults carried out on behalf of the Cask Report. Fieldwork was undertaken between 20th - 21st July The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+). Survey of 2,129 adults carried out on behalf of CAMRA (the Campaign for Real Ale). Fieldwork was undertaken between 20th - 21st July The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+). CGA Strategy CGA s Brand Index is the most comprehensive brand performance measure in the UK on-trade. The British Beer and Pub Association The BBPA has a long-established and authoritative reputation for the publication of statistics on the UK s brewing and pub sector. Data is sourced from members and from HMRC and accounts for 100% of all beer sold in UK. 39

40 CASK MATTERS To download copies of the Cask Report, or find out more about the issues it explores, visit the new Cask Matters website from Cask Marque at This is the one-stop shop for the cask ale publican, offering free online staff training, information, insight and news. You can also find out more about the many breweries and industry bodies that support the Cask Report.