Thwaites Brewing Division Takes The Knock

Marstons have bought Daniel Thwaites Brewing Division it was announced today:

Marston’s buys Daniel Thwaites brewing division operation:Marston’s has reached agreement with Daniel Thwaites to acquire the trading operations of Thwaites’ beer division. The acquisition includes two leading, premium brands: Wainwright and Lancaster Bomber ales. The total cash consideration is £25.1 million excluding working capital. Marston’s has been brewing Thwaites’ beers since early 2014. As part of this acquisition, it has entered into a long-term exclusive agreement to supply all beer, wine, spirits and minerals to Thwaites’ pub estate. Thwaites’ beer division is a high quality sales business of scale concentrated in the North West of England, including a 150-strong team of regional sales, marketing and distribution staff operating in the Independent Free Trade, National On Trade and National Off Trade channels. The business has shown good growth in recent years, including the acquisition of Hydes Brewery’s free trade business in 2012, which increased Thwaites’ business in Manchester. Thwaites’ two principal beer brands are Wainwright, one of the most popular golden cask ales in the UK and Lancaster Bomber, a premium ale. Both brands have won numerous awards in recent years and are highly complementary to Marston’s market-leading portfolio of premium craft and bottled ales. This acquisition is consistent with Marston’s brewing strategy to focus on popular premium ales with local and regional appeal, and provides an opportunity to capitalise on the developing free trade market and wider consumer interest in the beer category. The transaction is expected to complete on 17 April 2015. In the 12 months to December 2014 Ebitda is estimated to have been around £7 million before overheads of approximately £2 million. The acquisition is expected to be earnings-enhancing in the first full year of ownership; in the current financial year it is estimated that the contribution to profit before taxation will be around £1.5 million. Ralph Findlay, chief executive of Marston’s, said: “I am delighted to welcome our new colleagues to Marston’s. We are acquiring a very high quality business with good people and brands, and with growth potential. The acquisition is consistent with our beer business strategy to focus on local provenance and premium brands, and provides opportunity to capitalise on the developing free trade market and increasing consumer interest in the beer category.”

While extremely disappointing news in some ways, this hardly comes as a shock to those of us in the North West.  The writing has been on the wall since Thwaites first of all announced several years ago that it would move out of the Star Brewery Blackburn to a new green field site and sell the existing site to Sainsbury's. Years then passed with no progress and in 2012 the brewery was closed as "obsolete" without finding a new one.  With the exception of Crafty Dan brands, the beer was outsourced to, yes, you've guessed, Marstons. Thwaites then announced a new brewery after all and then maintained a deafening silence on the whole matter. I wrote about the brewery here in less than glowing terms and here in a lot more positive ones.  Seems my enthusiasm was somewhat misplaced. Thwaites will continue as a Pub and Hotel Company though one has to wonder for how long?  The record of such Pub Companies is quick demise though admittedly these are changed times, so who knows? Maybe it is a smarter move than it first appears?

However, oddly, it seems that all is not lost brewing wise.  According to the Wolverhampton Express and Star (Thwaites beers are largely brewed in Wolverhampton by Banks')  "Thwaites has retained ownership of craft beer brands and other cask ale brands, including its seasonal ale range, which it will continue to brew and sell in its’ own properties. Daniel Thwaites’ chief executive Richard Bailey said: “This is a very exciting development which allows us to focus on our pubs, inns and hotels, whilst retaining a small brewery to continue to supply our own properties with our fantastic beers and opening up a wider drinks range to our customers through a long term supply deal with Marston’s.

So as you were in some ways, though where these beers will be brewed isn't clear.  We'll have to wait and see.

It is odd that Thwaites refer to their beer brands as "Third Party Brewing Business". Well they are now I suppose.

Sleight of Handpull

I see Marston's owned Hobgoblin has introduced a new handpull which sports that same old goblin that gives most of us the creeps, this time captured like a mediaeval gargoyle in a metal pump clip, along with a new longbow design pull. "This creates more theatre around pouring and service in pubs", said Hobgoblin marketing manager Justin Way. Of course I'd like you to believe that he didn't say this, but he did.

You have to admit though, horrid though the images are, Hobgoblin has brand recognition and I suppose that's something that can't be sniffed at, but I'm not sure this redesign will attract anyone, but then again, I'm an old stick in the mud. You can't argue with facts though and Hobgoblin is growing fast, up 36% in volume year on year. In addition to the new handpull, Hobgoblin will be pushed as "fast cask" to get it into venues where currently real ale isn't sold. Whether you think this a good thing though is another matter. I'm not a fan of the beer at all.

One thing though? Theatre of the pour? Bollocks.

Sorry for the title. I've been reading too much Beer Nut.

Jennings to Brew Elsewhere

Flood hit Jennings will move production to other breweries within the Marston's Group until the brewery re-opens in January. Jennings head brewer Jeremy Pettman said: “We’ve decided to move brewing of some of our beers to our other breweries to ensure that our customers are not let down. "They will be produced under the supervision of myself and other Jennings staff. We’ll be working hard to get as close to the flavours of our Cumbrian beers as possible. “As soon as the brewery re-opens, production of all our beers will be moved back to Cockermouth.”

I have mixed views on this. While I can see that they don't want the Jennings name to vanish for a while, it opens up all sorts of unpleasant options for the future brewing of Jennings beers. And flavour match in a week or two? I don't really think that's likely. Maybe it would just have been better to keep them gagging for it for a couple of months?

A nice touch though is that Marstons will donate 10p of every pint of Jennings sold to the Cumbria Recovery Fund

Excellent Rant

It appears that Marston's Beer Company's MD Stephen Oliver has got a bit of chilli under his foreskin. It's made him shirty. In the Morning Advertiser, he has a right go at everyone. CAMRA are a lot of "beardy weirdies" - no prize for originality then- and slightly better - a set of "gobby hobbitts". Warming to his theme, we become "sandal-clad, whisker-stroking stormtroopers".

Showing no mercy Ollie also blasts his own licensees who it seems are an ungrateful bunch of bastards, not that he used these exact words. Why? The ingrates seemingly want to be able to sell beers from outside Marston's 5 breweries and their 35 permanent and 53 occasional ales. What a shower of shits! SIBA don't escape either, with a swipe at their not chipping in to pay for Cask Ale Week. He also has a neat little pop at small brewers saying their beers are "eclectic pints brewed in a cupboard with the dubious benefit of progressive beer duty." They are also "oddballs down a country lane" whose beer is served with bits in it.

It seems "normal" people should start to drink Marstons Beer and be grateful for it. Presumably he means if you don't like their beers, you aren't "normal". Now I love a good rant as much as the next man and no doubt Ollie's words will strike a chord with some, but the underlying message seems to be "after all we've done for you, why don't you like our beer you gits?".

Most people reading his outpourings will work that answer out for themselves, though I can see why he's miffed. After all they kindly took over some nice breweries, kept them going and made their ale more widely available. They could have been like Greene King and shut the lot down. It may well be a point. Why then is everyone so bloody unappreciative of their efforts?

There must be more to this than meets the eye. Why is Ollie so rattled?

Read the MA Article here.