Friday, 21 October 2022

How Much for a Pint of Cask?


We are, it seems, back with the same stuck old record that some trade observers think is still a whizz idea, even though, all things considered, it most likely isn't. Yes, Folks, to solve the problem - more of which in a moment - of how to sell more cask beer - aka real ale.  You know, that stuff - dispensed from a handpump - that is often served badly, being variously too warm, too flat, too vinegary-  and just plain not as the brewer intended. That stuff that experienced advocates of the style rarely purchase in an area or pub they don't know well, for fear of disappointing quality. That's the one. And their solution to declining volumes and poorly presented pints? Charge more for the real ale lottery, but keep the likelihood of winning a prize just the same.

We are told by advocates of this theory, the hoary old myth, that it is so difficult to keep cask beer that it needs the skill of the landlord to be recognised by charging more for it. We are also asked to think that there is little point in selling the stuff when you can make more from other products on the bar - a somewhat unsophisticated argument given the variables involved.  Selling in scale - although specialisms exist - is generally a diverse business, and those selling "things" generally take the view that you can't make the same profit margin on everything you sell, but need to have as broad an offer as possible to attract the widest customer base you can.

In cask beer, the elephant in the room, which is actually as big as the room itself, is that if you cannot guarantee the quality of the product, then you cannot charge more for it.  If you can and your customers will stand for it in these straightened times - then maybe you can up the price a bit, but be aware that even the best have to be careful not to overprice such a short-lived product. Every pint lost, will eat into your profit, so it has to be a careful balancing act.

Beer is such a broad church, and cask beer is one of the most diverse parts of it.  All beer relies on turnover, but cask much more so, as it is fresh and very perishable.  At its best you will get 3 days out of it, so those in the know don't overprice cask beer, as the chances are you won't be able to sell it in good condition.  Cask beer has to be priced to go. Even if you have a more affluent clientèle, paying more than average, you can't overprice it for the reasons stated. That results in poor quality and declining demand as trust goes.

It is odd, too, that while cask volumes may be down, there is still plenty of cask beer in top form available. Specialist pubs, the tied houses of Family Brewers and many more, all supply reliable quality cask beer, often at remarkably competitive prices. In areas that have such competition, you will often find the non-mainstream sellers of cask, have better quality too. They have to compete. There isn't one size fits all where cask is concerned.

This does not even take into account some of the other variables, such as the current cost of living crisis.  Can we really believe those who would tell you that cask ale drinkers will pay more for cask beer as an occasional treat, in the full knowledge if the beer is only occasionally drunk, then it will likely not be a treat at all?  

A final point. Cask ale still costs, on average, less to produce than keg, which relies much more than cask on expensive CO2 in both production and dispense.  The margins aren't likely to be decisive if you turn beer over quickly. Not exactly "Pile it high and sell it cheap", but certainly it needs to shift much more quickly than other draught stock.

Of course, everyone from brewer to publican deserves a decent return on investment, but forget this at your peril. Cask, as a fresh and perishable product, must be priced to go.

I commend to you also recent posts by Pub Curmudgeon on this subject.  He has gone into the figures much more deeply than this dashed off piece allows.

And let's stop this idea that cask is hard to keep. It isn't, as I (and Greene King) point out here, but it does need a little (easy to learn) knowledge.  There isn't in most cases any reasonable reason to sell poor cask beer, but a bit of pride in what you sell wouldn't harm either.

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12 comments:

Curmudgeon said...

Splendid - the best posts are often those motivated by passion. And thanks for the mention :-)

Anonymous said...

Brilliantly put

Cooking Lager said...

Much of this is at cross purposes. The cask market in the North and South is very different.

In the north it's still a volume product sold to a working class customer base, in addition to the middle class CAMRA beer enthusiast.

In the south, it is more a niche product sold to an aspirational middle class enthusiast customer.

And that's ignoring Scotland. Wales mirrors much of northern England.

Margin & volume are much related. You can only have low margin with high volume.

retiredmartin said...

Spot-on, as always. As it Mudgie.

The other argument I read is that "better" cask beers should be priced higher than "bland" beers, presumably the bland beers are the Top 10 best sellers. Setting aside strength (ABV), does the quality of raw materials actually make that much difference to cost per pint ?

Tandleman said...

Indeed. I do allude to the differences. A very varied market.

Simon Webster said...

Good point here. As I read the blog post I was thinking how there is nothing 'priced to go' about Fuller's beers in their managed pubs in and around London. Lucky to get Pride for less than a fiver these days. As for ESB...

Wish this wasn't the case.

Paul Bailey said...

There's been much written, and commented on regarding this contentious subject during the past few months, some of it by me, but no one seems to know the answer.

The obvious one is, if you can empty a cask within three days, then you shouldn't be selling it, but with so many variables at play, it's difficult to know, where to begin.

Charging a premium isn't the answer, but busting the myth that cask is difficult to keep, would go some way towards ensuring its survival. CAMRA has been guilty in promoting this fallacy, possibly because it suits the organisation to regard cask as an elite product.

Cooking Lager said...

Eye, Tand. But the north is heading southward, not vice versa. In ten years the older northern working class cask drinker will be gone and working class drinking will be all Carling, like the south.

So it's heading low volume, middle class, enthusiast & niche all over. A product of specialist pubs rather than mainstream boozers or pub restaurants.

Those advocating higher margins have got it correct. It likely needs to look at smaller packages than a 9 gallon but reusable (not disposable plastic keykegs) as most of that customer base is a bit on the guardian reading side. Only the ale jihadi nutter end of CAMRA argue that recyclable plastic is green.

Tandleman said...

Well maybe, but not yet. Higher margins would necessitate higher abv to keep it longer. There are other issues too. Smaller packages involve more cost. We already have reached peak Carling and then comes along recession and depression.. The move to premium beers will be reversed for a while. And occasional treats will do nothing for viability or margins. Cask ale in volume will see me out. Aprés moi? La deluge.

Curmudgeon said...

@Cookie - premium pricing may make sense from a market positioning point of view, but it won't do anything to improve quality.

Professor Pie-Tin said...

Cask is a generational thing.
The young blades entering my local almost invariably go for Moretti, in the hope the totty thinks they've parked their Lambretta scooter outside.
Old codgers like me go for cask safe in the knowledge a mobility scooter is outside.
Wahaay !

Tandleman said...

Don't tell'em it's brewed in Manchester Prof!