Cask ale performing strongly, report reveals

October 1, 2008: The UK’s national drink is coming to the rescue of the British pub, with a new cross industry report showing cask ale holding its own as lager, stout and other draught beer sales have fallen further and 36 pubs are closing every month during tough economic times.

The Intelligent Choice Report — backed by some of the country’s major brewers and consumers — shows a sterling performance of cask conditioned, or real ale, compared to a significant decline in sales of others.

Research by one of UK’s leading pub groups shows that pubs serving good cask ale have seen year-on year trade growth of 14%, compared to a fall of -2.5% for similar pubs without cask ale.

The continuing success of cask conditioned beer has been welcomed by licensees up and down the country, so much so that many have now upped the ante with their cask beer offers as part of the fight to overcome the challenges of reduced consumer spending and poor summer weather which left beer gardens empty.

While general beer sales have declined by 8% over the last year, real ale sales are way ahead of the overall beer market with a mere 0.3% dip in volume. Regional and local brews are performing even better with a growth in value in the year to May 2008 of 1.8%.

Report author Pete Brown said: “The report shows how Britain’s national drink is really helping landlords and landladies keep business — and even grow it — in challenging times. It gives a real point of difference for pubs over supermarkets. You can’t buy pub atmosphere in a shop and neither can you buy cask beer. Great quality cask ale is one of the key elements to keep attracting people into their locals. It’s a massive reason to visit."

With cask ale enjoying a new sense of cool — film director Guy Ritchie is on record as being a big fan of it at his Punch Bowl pub in Mayfair — the profile of those drinking it has changed too. The report shows that, in contrast to times gone by, cask ale drinkers are now relatively upmarket and affluent, and more than twice as likely to earn above the national average wage.

Pete said: “Drinkers aged between 25 and 44 are the most significant new recruits to cask ale. Our research shows 65% of UK drinkers have never tried it but among those who do sample it, 40% actually convert and broaden their repertoire of drinks to include cask ale.

“At a time when the brewing industry is having to deal with so much — from spiralling raw material and utility costs to massive tax increases on a pint of beer — you might think that global lager brands with a big marketing spend would be weathering the storm much better. But it is actually cask ale with its inherent quality, its freshness and uniqueness which is coming out on top.”

The success, say those behind the report, is down to the hand crafted nature of the drink at a time when consumers are seeking out quality and wanting more than a mass produced pint. Cask ale only uses four raw materials — hops, malted barley, yeast and water — and very often, these are locally sourced. In times of political and economic uncertainty, they say, people also look to tradition and heritage as symbols of continuity and stability.

“Cask ale is to Britain what wine is to France and there is a new sense of celebrating our national drink," said Pete.

"There are some great sponsorship deals from some of the major cask producers, including England rugby by Greene King IPA, English Heritage by Wells Bombardier, England cricket by Marston’s and the London Marathon by London Pride. From primetime TV shows which celebrate Britain and the British to the recent success of our Olympians, the country is enjoying a renaissance in national pride. Cask beer is the deserving beneficiary.”