Sections

ideals
Business Essentials for Professionals



Markets
02/04/2018

Tap Rooms The New Bet To Tap The Market For Craft Beer Makers




Tap Rooms The New Bet To Tap The Market For Craft Beer Makers
While there is a rising trend of closure of pubs in the U.K. and the increasing dominance of big brewers, the tradition of brewery tap rooms is being revived by British craft beer makers to counter those trends.
 
According to a report by the Society of Independent Brewers (Siba), a tap bar is run by almost one third of small breweries now allowing drinkers to get a taste of what they want to drink. This is also reflective of a growing micropub culture because brewers are taking over empty shops on their local high street.
 
“A high percentage of our members now have tap rooms and they are becoming as important to local communities as pubs are,” says Mike Benner, the chief executive of Siba. “They have always existed but are making a comeback because today consumers are very much into the idea of independence and local beer.”
 
Equivalent to 6.5% of total UK beer sales, about 500m pints of indie brews were destroyed in 2017 which was a low for the industry but the craft revolution has refreshed the beer market. Siba says that while the wider beer industry reported a miniscule growth of 0/.7%, there has been a 1.7% growth in the market for craft beer sales.
 
The tap beer room run by the Leeds-based North Brewing Company, also serving as a place for community events, is opened up for tasting by consumers only on Fridays and Saturdays like many craft brewers. “The tap room has an open, friendly atmosphere, with dogs and children actively encouraged,” says John Gyngell, the managing director of North Brewing.
 
“The tap room provides a real connection between the customers and where their beer comes from,” says Gyngell. “It also makes sense financially as we are able to sell the beer at retail rather than trade margins. This has been invaluable in supporting our expansion during our first two years of trading.”
 
The beer industry is going through a dynamic phase with fast changes, says the Siba’s research report, where the beer scene is being reshaped by the urban hipsters and established brands are facing the tune.
 
Consumers have switched to kegs instead of American hoppy-style beers and IPAssees brewers and there is a sharp decline for cask production. The report further suggests that about a fifth of the output of the craft beer producers either are now bottled or has the potential to be bottled because of a trend of having beer at home instead of the regular pub. The online medium – websites, is also being explored by these beer makers for the click-and-collect services.
 
“Cask beer is seen as the pinnacle of brewing by most peopler but there is a shift towards other formats,” says Benner. “It is struggling because it’s a pub based product. It’s still hugely popular, because in a traditional British pub it will never go out of fashion, but the way people spend their time is evolving.”
 
(Source:www.theguardian.com)

Christopher J. Mitchell

Markets | Companies | M&A | Innovation | People | Management | Lifestyle | World | Misc