1 hour ago
Saturday, 11 May 2013
Even More Trouble Brewing
Following my post yesterday, in which I hinted that more news might be forthcoming, it seems that all brewing will be suspended (cease) at Cains of Liverpool, with Cains own beers being outsourced meantime, as the brew length will not economically permit the production of the ensuing reduced volume of beer, which I understand, even with supermarket beer, had fallen to around 12,000 barrels. All hopes are being pinned on a site re-development into a leisure complex with a "brewing village" for which planning permission is being sought. The plans will be submitted to Liverpool council in the summer, and if approved work could start next year. The re-developed site would not be open for at least 18 months to two years, so presumably brewing will be "suspended" until at least then if all goes well.
Will the brewery ever re-open? Maybe we shouldn't hold our breath on that one.
The Echo has it all here again. I'll keep you informed.
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11 comments:
Seems not only pubcos are discovering that property development is more lucrative than selling beer.
Having denied precisely yesterday that this was going to happen, exactly how long were they planning to cover up the truth?
If the brewing business is not viable without the supermarket beer, then you keep doing the supermarket beer to keep the volume up so you can cover your fixed costs. That’s O-level economics. You're not telling me the management don't know this.
The whole history of Cains has been one of mismanagement and dubious decisions. They started off in a blaze of glory, and for a while Cains Bitter was "the national drink of Liverpool", but it all went downhill from there.
Locally, buying the Gothic Bar in Gatley, Stockport, always seemed a weird decision, and their acquisition of Honeycombe Leisure proved to be utterly disastrous.
The Dusanj brothers come across as, maybe not outright crooks, but chancers with little understanding of the pub and brewing industry.
A scaled down and energy-efficient modern brewing plant would make sense, I suppose, especially with reduced volumes following the loss of the supermarket contracts.
I believe that Tolly Cobbold experienced similar difficulties, following the management buy-out that took place there. They too ended up installing a much smaller, modern plant within the main brewery.
Huge old, Victorian breweries, built in an era when beer consumption was much higher than it is today, might look very nice and appeal to those with a sense of history and tradition, but they make little sense in today's harsh commercial environment.
Let's hope the company get the go-ahead for their planned development of the site.
If you want to predict the future simply look at the past! Said this about them in December 10. Dusanj Brothers - Piss Up - Brewery!
http://allgatesbrewery.com/allgates-brewery-blog/2010/12/robert-cain-brewery-–-material-uncertainty-and-poison-pills/
If they made a better product, they wouldn't be in this position.
Those that appeal to the lowest common denominator,without the volume to carry it through, are doomed to failure.
It should serve as a reminder to regular commentators on this blog, that selling so-so stuff at discount rates isn't a great business plan.
What a shame.
Anon says: "It should serve as a reminder to regular commentators on this blog, that selling so-so stuff at discount rates isn't a great business plan."
No commentators on this blog, regular or otherwise, have suggested that selling so-so stuff at discount rates is a great business plan.
Of all the breweries in the world, Cain's are probably in the 1% I'd miss least if they disappeared.
As uninspired, uninteresting and downright rubbish brewers, they're right up there with Dent and Clark's.
Following the original news of their 'plans' I ventured into a Cain's pub for a pint of their Bitter. it was one of the most unpleasant beers I'd drunk in many a year and a reminder of why I'd given them a miss for many years.
Dent and Clark are both on my list.
and it actually makes me the biggest capacity brewer in liverpool, with a lowly 12.5 barrel plant.....
yours (slightly bemused)
critch, liverpool organic
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