BeersManchester

Jesus Wept.

I thought I’d heard it all. But obviously not. Not yet. Not by a long chalk.

Communication tip. If you want to sound sincere, don’t deploy the “cut & paste email”.

Progressive Beer Duty. Launched by Gordon Brown in 2002 to support Micro Brewers and to give them the financial wherewithal to compete. Big Beer UK hates it. They think they’re “The Squeezed Middle”, between the international behemoths of Heineken, ABInbev, Molson Coors & Diageo.

And the little guys. Making the beer I love.

They are obviously struggling to make ends meet, whilst Micros deliver beer from the boots of Bentleys. You think?

Whilst Micros are working out what this Treasury review of Progressive (remember that word) Beer Duty actually means, Big Beer UK has not been resting on its arse.

Oh no. They’ve been mobilising.

And Micros – be it via SIBA or some other entity or grouping – need to do the same.

Enter the IFBB.

Who???

The Independent Family Brewers of Britain. That’s who. Check that membership list! (click the hyperlink) And they are gunning for Progressive Beer Duty. Alongside the SBDRC and BBPA

BBPA? Who???

The British Beer & Pub Association. AKA Big. Beer. Business. UK. That’s who. Check that membership list! (click the hyperlink)

More then. You may (and I encourage you vigorously to do so) have checked each membership list. It’s certainly worth while. There are certain discrete similarities.

Bollocks. They’re a lift and shift. With exceptions of the multinationals and the Pubcos, they’re virtually identical.

Then, THEN compare with the list from last year for the SBDRC…… Oh, go on. Please. It would be amusing if it wasn’t so sinister.

Noticed any similarities yet?

OK. We’re at base camp now.

So. You have 3 “industry bodies”, jointly and severally lobbying The Treasury, to review / reform Progressive Beer Duty.

In their favour. And their memberships are practically identical.

Collaboration is ace innit!

Now then, where was I? (Even I’M getting muddled here!)

Let’s look at the IFBB in more detail.

Richard Fuller. Secretary of The Independent Family Brewers of Britain.

Hang on. Fuller. As in that brewery that is no longer “Independent”? Hmmm

And…..

Yup. That’s him. A director of a pub and hotel company having sold the brewery business. Acting as the Company Secretary of an organisation representing “family breweries”. I trust he’ll relinquish that role soon.

The company as a whole (Fullers) is doing alright. And was only declaring 8 months ago that they had “solid plans in place” for the brewing business…..

Sounds like a sales prospectus…..

However you cut it, £43M Profit isn’t shabby.

Another member of the IFBB, BBPA & (last I saw) the SBDRC is J W Lees

Later results for 2017 & 2018 dip slightly on profits with the dip between 2017 & 2018 attributable to higher investments expenditure.

If I’ve got the figures wrong, please advise, I’m a bit thick at the moment.

Now. Like a lot of the family brewers, they’ll say – with some justification, no doubt – that a sizeable proportion of this profit is due to the tied and managed estates. Sales, rather than simply brewing. But this is still profit.

The tied estates of the family brewers have been acquired over hundreds of years. The Micros of this current period won’t get the chance to gain ANY tied estates – however small – if these 3 (almost identically comprised) pressure groups get their way.

I could go on. I’m told that I do. But this whole Independent breweries sector feels like “family” to me. These people have helped me through some ******g dark times.

If – in whatever small way – I can have an input into fighting off these vampires (don’t forget that comment on SBDRC website about Mergers & Acquisitions), I could hold my head high.

And – to The Small Brewers Duty Reform Coalition – if you want a proper debate, come out into the light. Where we can see you.

As I’ve said, I’m no writer, this is emotive to me. I give a toss. Others can – and will – put it better, more eloquently. I can’t wait to read them.

And one more question. There are a lot of professional journalists writing about beer, for a living.

Where are their voices on this?

Big beer is mobilising its troops. Little beer (and those of us who care) ought to do the same.

Before it’s too late.

“Just when you thought it was safe…….” Here go the Small Brewers Duty Reform Coagulation. Again.

Forget the ABInbevs, Molson Coors of the world. In a UK context THIS is Big Beer. Big Beer with all of the PR and spin merchants that it can throw money at. All with the aim of increasing market share. In a declining market.

And using their access to the ear of Government to state their “case”.

If I hear the phrase “level playing field” one more ******g time I might just howl.

You have to admire “Big Beer 2019”. With its pretty websites and finely “crafted” phraseology. All with the ultimate aim – openly stated or otherwise – of closing down the competition. The small guys. The Micros that you and I know and love.

In the name of shareholder dividends and balance sheets.

This is about Progressive Beer Duty. And Big Beer UK’s simultaneously shadowy yet naked attempt to grab a bigger piece of the pie. At the expense of – what I regard as – the golden age of choice and beer diversity.

So. Let’s look at the Small Brewers Duty Reform Coalition

You’ve got to admire their transparency….. Oh. Hang on a minute……

When this all kicked off last year, there was a list of breweries that signed up. Very quickly, some of the breweries who signed up – not knowing the full agenda – quickly withdrew. Recognising the effect that “pulling up the ladder” would have on others (including many friends) who were on the rung that THEY were on not too long before.

Then I saw a list. A copy of which is in this post.

Having been privy to the letter at the top from H M Treasury (received by brewers this week), I thought I’d have a look on the SBDRC website, just to see who the members were now. Now that their true colours are revealed.

Nothing.

So. Being a cheeky wee scamp, I followed the trail of breadcrumbs to a contact email address….

As you can imagine, I can count the number of replies on 0 fingers. That’s almost 3 weeks later.

(Just double checked – to avoid embarrassment. Still zero)

Some of their PR /Propaganda is quite shameless and – to put not too fine a point on it – so far from the truth to be actually l… (am I allowed to say “lies”?)

“Its unfair to ALL small brewers…..” (I left the apostrophe out)

EH? WHAT???

SIBA published a study in 2017 (sponsored by them but independently researched and written) by CEBR

I don’t mind saying that this is a right dry bastard of a read. (If you – like me – are an insomniac, type “Small Brewers Duty reform report” into Google, you’ll find it. Sleep well!) But my inner stats geek loved an hour staring at pretty graphs and tables….

In essence, this table demonstrates the cost of making beer relative to the size of brewery. And demonstrates the economies of scale that larger brewers have. That it still costs more – even including the reduced duty rate – for small brewers to produce beer.

But no. Our friends in the “Coalition” won’t, can’t, say that. That would demonstrate a levelling of the playing field. Precisely their argument, but thrown back.

Last year, the “Coalition” were talking about reducing or removing the relief from duty for brewers above 1k hectolitres – a hectolitre being 100 litres. Or 2 1/2 9 gallon casks.

Do the maths with me here.

If an average (let’s say 6 or 7bbl) brewer brewed 3 times a week at full cap. Giving a 4 week break (yes brewers, I know that it’s dreamland in terms of hols, but…) that equates to just over 1612hl. If that brewery brewed 4 x per week that is near 2200hl.

Under those terms, that brewery would be paying 50% more duty on those 1200hl above the original SBDRC level.

Take a 10bbl brewery. 3 brews per week… Christ! That’s 2304hl…..

Now they talk about the differences between 500hl and 5000hl. 500hl!

Let’s be clear. Some breweries that YOU know, will be at THIS moment, clinging on. Getting beer into pubs is NOT easy, especially in a market dominated by big pubcos that demand beer at the lowest possible prices. Prices that “Big Beer” can (and do) supply at. Just look at any Wetherspoons bar….

This relief was introduced by Gordon Brown (as Chancellor) in 2002 in order to provide a boost to growth in the Micro Brewing sector. The stats don’t lie. And we have all seen the explosion in numbers of breweries in the last 6 or 7 years. This growth of numbers would not have been possible without SBDR. I quote the CEBR report again….

But that net growth has slowed massively.

I must confess that I worry about new market entries in brewing. It’s very difficult to make a “splash” in this market. For every standout opening like Pomona Island, there are many who don’t make that reputational impact.

And making a reputational impact is all well and good. You still have to sell beer. And compete at the bar, with those very breweries that are seeking to “do your legs” with their ability to sell beer cheaper into the chains and into wholesalers.

And I’ll never forget looking at a young enthusiastic and ambitious brewer in Manchester a few years back – one that was seeking to expand – and asking “Why would you do this?”

I hated not being more positive. I truly did.

I’m not a writer. “I’ve never took a paper or a learning degree” I’ve got no stake in any brewery, other than emotional. The only self interest I have (if any) is the ability to source fabulous beer from the best available independent breweries in the UK for #ISBF6….. #ISBF7…… But be under no illusion, by their own words (re “mergers and acquisitions….”) the Vultures of “Big Beer UK” are Circling.

If the Vultures of the SBDRC get their way – and the Treasury reduce or remove the level of relief for those breweries below that magic 5000hl – the brewery landscape that YOU now love and treasure, those breweries whose excellence allows me to put on #ISBF, will be picked clean to the bone.

What I, WE, love, this “Golden Age” of beer, is under threat.

Them Damn Vultures. Circling. Again.

Take a look at that brewery, of a typical size for a Micro being 5bbl (or approx 8 Hl).

Because if the Small Brewers Duty Relief Coagulation (sic) get their way, breweries like this are likely to be priced out of the business.

I’ve learned quite a bit about duty relief this last week – much of which was down to a quite forensic post from Steve Dunkley of Beer Nouveau (read that post here) and feel much the better for it. I like numbers, I like graphs. They are my friends, I understand them.

The members of the SBDRC are quite large (in a brewing sense) businesses. And they spend quite large amounts of money – employing smart and talented people – on PR. Smaller breweries (Let’s say up to 5000 Hl in annual output – THE pertinent figure in this “debate”) can’t afford that. They have to let their product do the talking. Via the tried and tested media of flavour. And design.

The SBDRC have started to respond to the “outcry” sparked by their proposals. About which I feel sure they are unsurprised.

They respond most effectively by the twisting of language. Reaching for the black Thesaurus of PR. Taking a word and finding a shady verbal alternative to paint something in a negative light. It is actually a very simple and effective technique, beloved of politicians everywhere.

A recent article in the trade publication “The Morning Advertiser” provides some wonderful examples from the unnamed “spokesperson for the coalition”. Read that here.

An example : “For brewers brewing under 5000hl of beer per year, the Government provides a 50% discount on beer tax….”

The word used in taxation IS actually “relief”. This relief technique is not unique to breweries. There are all kinds of relief mechanisms across the entire spectrum of taxation.

But then “discount” is a much dirtier word in the business world when compared to “relief”

Another example of PR verbal weaselling :

“…… proposals that will ensure that the vast majority of small brewers are better off and will allow the creation of much closer to a level playing field“

Let’s take two elements of this….

Proposals…… vast majority of small brewers are better off

HOW? HOW???

They are proposing to reduce the lower volume level for the 50% relief from 5000hl to 1000hl. So HOW does that make those tiny outfits brewing less that 1000hl better off if they are getting the same relief?

“…. will allow the creation of much closer to a level playing field”

Ah. That beautiful egalitarian phrase. “Level playing field”

How can there be a “level playing field” when a small micro brewery doesn’t have the economies of scale of breweries up to 80 times the size of production?

How can there be a “level playing field” when some of these breweries have substantial tied estates with generations of customers that take that product?

How are these Micros ever going to be able to compete against such resources?

“Progressive Beer Duty – or SBDR – (being) a misnomer because once a certain level is reached it is anything but “progressive”. “

Actually, that is PRECISELY what it is. Progressive. In that it increases gradually and in stages.

“The spokesperson stated that the 50% discount offered to breweries producing under 5000hl was an enormous disincentive for growth…. “

Tell that to Cloudwater. Whose founder Paul Jones in his own figures believes they will increase production to approximately 7500hl in 2018. So you can be progressive, make fabulous beer AND grow past that magic 5000hl figure.

I could go on. Some say that I frequently do. But I’ll be damned if I sit back and just watch whilst the big boys deploy PR verbal weaselling to defend their proposals.

We would lose too many tremendous breweries should they succeed. Breweries and businesses that – let’s not forget – sustain thousands of jobs.

Yes. Not even I will argue that there isn’t overcapacity in brewing. How could there not be with the never ending story of pub closures. There will be a reckoning.

Many Micros are one or two person operations. In the long term, the “rewards” at the smaller end of the production scale simply aren’t worth the enormous effort. Breweries will close. And I will lose some talented friends from the business.

But I’ll be similarly damned if I sit by and watch them close due to the manipulation of taxation relief and government lobbying.

Defend your businesses by all means. But don’t pretend you have the interests of the Micro Breweries of the UK at heart.

You don’t.

The end of March. It’s chilly. It’s Easter weekend.

I was on “a mission”.  To New Mills. And Torrside. One of the undoubted success stories of the breweries launched in the last 3 or 4 years.

My Beer Buddies never miss a Torrside Brewtap and with the launch of #ISBF5 fresh, I needed to chat over a few beers.

The place was heaving. Not a bench seat to be had with lengthy queues at the bar and the trio of brewing owners racing to keep up.

With smiles on their faces. As is right. The beer was flying out.

That Centennial Porter may be just about the best Porter I’ve had in a long time.

The place was busy with happy drinkers. Wearing coats. It was distinctly chilly. It’s on a canal basin. In the Peak District. It was cold. Yet it was still rammed.

Why? Because Torrside are bloody good at what they do.

Many attendees would have been local. But I came from Bolton, Steve from Sheffield, Chris from Wolverhampton, Jock from Middleton.

A thriving Brewtap can be the difference between going under and surviving. Or surviving and thriving in a very competitive market. The making of exceptionally good beer sometimes isn’t enough.

Being a Micro Brewery isn’t easy. Sometimes it’s a Sisyphean effort just to keep heads above water. And some people seem to want to keep the boot on those heads.

Warning : Rant incoming

For me, this was the start. A motion to the CAMRA 2018 Conference. From a man with – let’s say – a poor opinion of Micro Breweries and an avowed affinity with the Family and regional brewers of the UK.

I was told by trusted friends and comrades that this motion has ZERO chance of becoming CAMRA policy. People who know the internal workings of the organisation far better than I.

But that kind of missed a rather important point in my opinion. Even if this was a freestanding assault on SBDR (Small Brewers Duty Relief), it would still be a seed sewn – I’ve seen this all too many times in Trade Unionism. And in other political arenas.

Sew the seed of an unpalatable idea. Let roots grow. And some time later, with enough propaganda as fertiliser, that seed can bloom.

(Let’s not talk about the deliberate juxtaposition of these two poisonous written pills. Simply appallingly biased editing.)

But this isn’t a freestanding assault. And the more I think about this, Mr Sheridan increasingly looks like a cipher. For the Regional and family brewers he so adores.

Say “Hello” to The Small Brewers Duty Relief Coalition

Or – to give them another name – The Big Guys.

Read some of their weasel words here….

And then look at the list of members

Small Brewers? MARSTONS (Ringwood, Jennings etc)??? Fullers (now with a belly full of Dark Star)? Charles Wells (prior to bailing from brewing)?

And as for Beavertown…..

Taking the piss…..

OK. These Horsemen Of The Micros Apocalypse coalesced over a year ago. I’d heard nothing recently, until some of my small brewing friends started to panic.

The reduction (and – as advocated – possible removal) of SBDR would sound the death knell for many Micros. And that is precisely the aim of these Reapers.

To close down competition.

The big guys are panicking. Shareholders getting twitchy, they strike out. The formation of this “coalition” (I prefer “cartel”) was one of those seeds. And that Motion 8 – unsuccessful though it may eventually be – have no doubt, is merely the start of the roots taking hold.

I like the diversity of beer that we have right now. Especially in Manchester. I’ve said it before, this is a golden age for drinkers. We have more choice than ever before.

These big brewers want to kill that. Stone dead.

And that’s precisely what the reduction or removal of Small Brewers Duty Relief would do.

Some breweries have started to close. Yes, the market is “competitive”. It’s also not helped by some shocking “discounts” being offered. In the import / export arena, that would be almost be called “dumping”.

And let’s not talk about Wetherspoons.

I’m not worried about the likes of Torrside. They have built a fine reputation for flavour and have a growing and increasingly loyal following. The Brewtap last Friday being testament to that.

But these beer bullies want to increase their own profits by removing the competition. Not by the tried and tested method of takeover, acquisition and closure. But by encouraging the Government to do their dirty work.

If you value choice and diversity of offer in beer, we can’t let that happen.

“I wish that I could push a button and talk in the past and not the present tense.
And watch this hurting feeling disappear like it was common sense . . . . . “

(“Brilliant Mistake” – Elvis Costello : clip courtesy “Carlos Augusto” on You Tube)

This may be the hardest piece that I’ve ever had to write. But I did have to write it.

The Independent Salford Beer Festival was a huge success. We owe tens, maybe hundreds of people our (and my) enormous gratitude. Read that post here (if you haven’t already)

I have always organised this festival to support my dear friend (and “Extended Family” matriarch) Gerry, the lovely lady that runs this centre and keeps it ticking over with her determination and sheer hard graft. This job isn’t easy. And can be thankless. But in these straitened times, it’s essential. I do love this woman.

But this year, the festival was for me. To help me through some shit and to give me something to keep me moving.

You see, 4 weeks today, on Tuesday 27th September, our youngest son took his own life. And our lives changed forever.

The really strange thing is the way people interact with you when they know. Especially with Christine. So far, nobody has judged me for doing what I have done with this festival. But I needed it. To keep me moving. To force me to place one foot in front of the other on a daily basis. To keep some semblance of sanity.

I don’t want sympathy. We have an enormous reservoir of that with the most amazing group of friends and family that anyone could wish for. That is most emphatically NOT why I am writing this.

But again, this isn’t about me and it isn’t about my family. We will cope. That is what most people do.

You see, at my son’s funeral, I wanted to speak to his friends in attendance from the pulpit. To try and get a message across. That message is about communication. Talking – to put it simply. So – against the advice of the priest, I did. And I hope it did some good.

The limited readership that I have is (mostly) of an age where they will have children. And what I have come to understand, by force of events, is that being a teenager is far from the simple thing it was when I grew up. That there are pressures that we – as adults – may never truly comprehend.

I don’t seek to lecture or preach. But – to me – what has become stark, is the need for kids to have someone they can trust to talk to. When life feels dark and a bit shit. They need to have someone. Someone to reach out to. Be that Mum or Dad, a brother or sister, a friend, a teacher, even people like the Samaritans or CALM. Just someone.

There were no clues with our son. None. Those who saw him last can make no sense of what has happened. Like many who (as he obviously was) suffer from Depression, he failed to reach out – or chose not to. And that is desperately sad. Kids – and adults for pity’s sake – need to know that there is always someone there.

If you are suffering, find someone you can talk to.

Like I said, I needed to write this. To hopefully help others and to try to find something positive that can come from our tragedy.

I will be out and about in Manchester and elsewhere. Life has to go on. Please don’t judge me. Nor – if you know me – stand off, with either myself or Christine. We’re no different. Just a bit sadder. The joy has gone from a lot of stuff really.

I’m going to take some time off from writing. Rebuild a bit. I might be back, I might not.

Take care of yourself and yours.

Jim

*If it wasn’t for the execrable actions of the Bolton Evening News, when they published the full details of our tragedy, I may never have written this. It may have been “public record material”, but my anger at their actions will never abate.