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The Changing Structure of UK Brewing and Pub Retailing

The Changing Structure of UK Brewing and Pub Retailing This article charts the major structural changes that have occurred in both UK brewing and pub retailing during the period 19892000. A key theme has been the rapid consolidation of the brewing sector in an attempt to achieve economies of scale in production, distribution and marketing. The dominance of the national brewers has allowed them to place increased product emphasis on marketing and me power of brands particularly lager, me national breweries control all me major lager brands. In tandem with these brewers, me growth and dominance of me national pub chains has garnered apace over the past ten years and in order to maximise profit margins they have established supply arrangements with me national brewers it has been in the interests of these chains to limit choice thereby maximising the discounts received from their suppliers. The article therefore shows that regional and local brewers cannot compete on price. Competition between pubs is also highlighted. Because beer prices are relatively inelastic, emphasis is placed on the level of amenities provided in pubs, and in particular the branding of pub outlets. Key among these amenities is the provision of food, which now accounts for a substantial percentage of total pub sales. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Wine Marketing Emerald Publishing

The Changing Structure of UK Brewing and Pub Retailing

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0954-7541
DOI
10.1108/eb008720
Publisher site
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Abstract

This article charts the major structural changes that have occurred in both UK brewing and pub retailing during the period 19892000. A key theme has been the rapid consolidation of the brewing sector in an attempt to achieve economies of scale in production, distribution and marketing. The dominance of the national brewers has allowed them to place increased product emphasis on marketing and me power of brands particularly lager, me national breweries control all me major lager brands. In tandem with these brewers, me growth and dominance of me national pub chains has garnered apace over the past ten years and in order to maximise profit margins they have established supply arrangements with me national brewers it has been in the interests of these chains to limit choice thereby maximising the discounts received from their suppliers. The article therefore shows that regional and local brewers cannot compete on price. Competition between pubs is also highlighted. Because beer prices are relatively inelastic, emphasis is placed on the level of amenities provided in pubs, and in particular the branding of pub outlets. Key among these amenities is the provision of food, which now accounts for a substantial percentage of total pub sales.

Journal

International Journal of Wine Marketing – Emerald Publishing

Published: Feb 1, 2001

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