DRAM February 2011 by Media World Ltd

246 DRAM MAGAZINE FEBRUARY 2011 ISSN 1470-241X

DRINKS RETAILING AND MARKETING

BIRRA MORETTI WISHES VITTORIA A HAPPY 40TH ANNIVERSARY

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246

DRINKS RETAILING AND MARKETING

WELCOME

CONTENTS

elcome to our first edition of 2011. It’s been a busy month with everything getting back to normal, and of course the publication of our Buyers’ Guide, which is included with this issue. Licensees have reported mixed trading over Christmas, but that January was better than last year. Here’s hoping that trend continues. This month we feature DRAM!, a new bar from Maclays which takes the place of the former Uisge Beatha on Woodlands Road in Glasgow. I’ve also got my usual New Year gongs, while the drinks feature this month is all about rum. At this time of year licensees often think about expanding or selling and our property guide should give you a guide to what sort of opportunities are out there. Allan Mawn, one of Glasgow’s great ‘mine host’s, died last month. Eddie Tobin pays his own tribute to a great friend. Next month we will have a new look to our news pages, and a new look website is also up and running, check it out at dramscotland.co.uk

February

2011

FEATURES

10 12 16 20 25

See you next month.

2011 GONGS Susan Young tells us who she thinks should get the trade’s 2011 honours.

TIKI ON DOWN TO A RUM BAR The popularity of rum keeps growing. We take a look at what’s been going on.

LICENSEE INTERVIEW Susan Young caught up with Stuart Mackenzie.

DESIGN: DRAM! The DRAM pays a visit to DRAM!

PROPERTY: THE TRENDS FOR 2011 There are lots of great opportunities out there. Susan Young checks them out.

REGULARS Editor susan@mediaworldltd.com

5 23

NEWS The latest news from around the trade.

SUE SAYS Straight talking from our very own Editor.

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nverness and the Highlands looks set to benefit from the decision to hold the 2011 Barclays Scottish Open at Castle Stuart on the Moray Firth, which is situated halfway between Nairn and Inverness. As a result local businesses and hoteliers are expected to benefit from a potential ÂŁ5m windfall. The Barclays Scottish Open Championship in 2011 will boast one of the strongest fields on The European Tour International Schedule, with many of the worldâ&#x20AC;&#x2122;s best players in action pursuing a prize fund of ÂŁ3 million. All four days will be broadcast live on both BBC Television (July 9 and 10) and Sky Sports (July 7 and 8) with extensive highlights on both channels. The three-year deal has been described as a coup â&#x20AC;&#x153;beyond their wildest dreamsâ&#x20AC;&#x2122; by bosses at the Castle Stuart venue. But they have also warned that local people have to get behind it. Stuart McColm, Castle Stuart Golf Links General Manager, commented, â&#x20AC;&#x153;It is a remarkable achievement, but it is ours to lose. We have signed up to a three-year deal, but if gate receipts are poor, they could say they donâ&#x20AC;&#x2122;t want to come back. This is worth untold wealth across all aspects of hospitality, including transport companies and Inverness Airport. It is amazing what it could be worth. He continued, â&#x20AC;&#x153;As a community, if we in the Highlands and islands canâ&#x20AC;&#x2122;t get behind this, then shame on us.â&#x20AC;? Neil Gray, spokesman for Loch Lomond Golf Club which hosted the tournament for 15 years, and which decided not to host the event this year, said Inverness was going to get â&#x20AC;&#x153;a sprinkling of stardustâ&#x20AC;?. He said, â&#x20AC;&#x153;It will certainly attract millions of pounds into the area. The experience was extremely positive for us.â&#x20AC;? David Urquhart, Joint Managing Director at Gordon & MacPhail says, â&#x20AC;&#x153;The announcement that the Scottish Open is to be played at Castle Stuart Golf Links is a great coup for Inverness and the surrounding area. The influx of visitors will bring a welcome boost to the local economy, licensed trade and tourism sector.â&#x20AC;? Local hotels which are already fully booked to accommodate players, sponsors and TV crews include the Glenmoriston, Culloden House, Drumossie, Bunchrew and Newton Hotel at Nairn. Castle Stuart Golf Links will be the seventh Scottish course to play host to the prestigious tournament since 1972; following in the footsteps of Downfield, St Andrews, Haggs Castle, The Gleneagles Hotel, Carnoustie and Loch Lomond Golf Club, which staged proceedings over the last 15 years from 1996 to 2010. European Tour Chief Executive George Oâ&#x20AC;&#x2122;Grady said, â&#x20AC;&#x153;It is always exciting to break new ground and everyone at The European Tour is delighted to be staging one of our most prestigious events at a new venue which has been so widely acclaimed.â&#x20AC;? Tim Peat, Managing Director, Barclays said, â&#x20AC;&#x153;We have always received requests from professionals to host the Barclays Scottish Open at a links course and we are delighted The European Tour has selected Castle Stuart. We look forward to working with the team at Castle Stuart and our partners at The European Tour to

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continue to deliver a world class tournament. We are confident this new links course will be a fantastic venue for the golfing public and our clients to watch the worldâ&#x20AC;&#x2122;s best golfers compete for the Barclays Scottish Open.â&#x20AC;? Meanwhile the future of Loch Lomond has been secured after members paid ÂŁ35m to purchase the club from business recovery specialists. Itâ&#x20AC;&#x2122;s believed that each member (800 in total) is to stake a minimum of ÂŁ20K each for the deal. The deal includes the entire Loch Lomond estate including the course, host of the Scottish Open from 1997 until last year, the Rossdhu House clubhouse, spa and additional accommodation, as well as the "second" course owned by the club at Dundonald Links in Ayrshire. The new Loch Lomond management is opting to concentrate on their membership for the forseeable future.

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BIRRA MORETTI CONGRATULATES THE CROLLA’S ON A 40 YEAR SUCCESS STORY ony Crolla’s Vittoria on the Walk has just celebrated its 40th birthday. The Edinburgh eatery which started out as a small 50-cover venue, today seats 190 guests, and has a sister in the shape of Vittoria on George IV Bridge. Tony who took over restaurant from his parents Alberto and Dina Crolla in 1993, says, “Vittoria is a real family run restaurant and was founded by my parents in the seventies and I over took the business back in 1993, when they decided to retire.” His parents, bought the original Pompas Tea Rooms and decided to bring a little taste of Italy to Edinburgh’s culinary scene with Vittoria. Says Tony said, “It is fantastic that even after 40 years in the industry Vittoria is still going strong. I originally started working at the restaurant on Leith walk washing dishes when I was 11 years old and as I got older I became more involved.” He continues, “My parents were a real source

DRINKS RETAILING AND MARKETING

of inspiration to me as the honest and hardworking way in which they ran their business was something that as an aspiring young businessman I really looked up to. Taking over the family business was both a daunting and exciting prospect and, fortunately for me, my parents were always on hand 246 to give me all the help I needed – and they still are.” Tony also owns La Favorita, on Leith Walk, Taste of Italy also on Leith Walk and Divino Enoteca; a wine bar dedicated to fine Italian wines on Merchant Street. A series of refurbishments are planned at both Vittoria on the Walk and Vittoria on the Bridge this year, giving the restaurants a new lease of life. Tony adds, “Both venues have been round for a while and are looking a little tired. With a lick of paint and a few changes here and there we are hoping to bring them right back up to date.” Birra Moretti is the only draught lager at Vittoria on the Walk. DRAM MAGAZINE

FEBRUARY 2011

ISSN 1470-241X

BIRRA MORETTI WISHES VITTORIA A HAPPY 40TH ANNIVERSARY

Donald McInnes was appointed Executive Chef of the four star Western House Hotel and Ayr Racecourse late last year. He heads a 10 strong team of chefs at Western House Hotel assisted by David Herbert, Head Chef at Western House and Paul Cuthbert Head Chef at Ayr Racecourse. Latterly he was Group Training Executive Chef for Malmaison and Hotel du Vin which saw him overseeing the training of staff at the groups's 26 hotels. Says Donald, "What appealed to me about being executive Chef at Western House and the Racecourse was the sheer volume. To prepare and serve the quality of food at the volume we do is a huge challenge but one I'm enjoying.” The Hilton Strathclyde has appointed Garry Gill as its new executive head chef. Garry joins from the Crowne Plaza Hotel, Glasgow where he was executive sous chef for five years. He has also worked at the Hilton Glasgow and the Radisson Blu hotel in Edinburgh. Jill Newbigging, general manager of Hilton Strathclyde said, “Garry is a tremendous addition to the team and we’re confident he will ensure the hotel continues to provide a fantastic dining experience to locals and visitors alike.”

SHORTS Di Maggio’s accounts show that operating profit at the privately-owned company slipped to £690,802 in the year to April 30 from £912,239 in the prior 12 months. However the underlying fall in operating profit was only £58,603, if you take into account an increased in directors’ pay. Operating profit amounted to about £2.88m in the year to April 30 if directors’ pay is excluded. The company now has 12 full-scale restaurants in Scotland. These include outlets operating under the Di Maggio’s name, Cafe Andaluz tapas FEBRUARY 11 DRAM

restaurants, and L’Ariosto and Amarone in Glasgow as well as various food court outlets. Buccleuch Foods and Campbell Brothers have agreed a merger deal which will see Buccleuch Foods closing its production facility in Castle Douglas. The merged business will be located at Campbell Brothers' headquarters in Bonnyrigg, Midlothian, although both brands will be retained. The move will result in 35 job losses on the Buccleuch side, as the company relocates.

The latest UK Quarterly Beer Barometer has reported a sharp 3.9% fall in UK beer sales in 2010. The figures published by the British Beer & Pub Association, show that while off-trade sales have remained relatively stable, pub beer sales have shown a sharp fall, by 7.5%. Loch Lomond Distillery the firm run by Sandy Bulloch, has increased its fullyear pre-tax profit to £361,545, a massive leap on last years profit of £63,884 in its accounts to 31 March, 2010. The group produces Loch Lomond single malt whisky,

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MURPHY STRIKES BLOW FOR ALL PUBS andlady Karen Murphy has struck a blow for licensees around the country, having got the EU to voice an opinion that it is not illegal to allow television viewers to by-pass UK broadcasters and watch cheaper foreign satellite coverage of Premier League football. Julie Kokott Advocate-General at the European Court of Justice will advise judges to back the right of Karen Murphy to use a Greek decoder in her Portsmouth pub to screen matches. The ramifications for Sky could be huge, with some £70m of the companies profits coming from the on-trade. Karen took her test case to the EU Court after she faced a fine and costs totalling nearly £8,000 after the Football Association

Premier League (FAPL) took her to court for breaching the League's power to grant exclusive broadcasting rights within the UK. Kokott supported her case, saying blocking her right to use far cheaper Greek decoders to screen matches breached EU single market rules. The Advocate-General's "opinion" although not legally-binding, will go to a full panel of EU judges within the next six months, and in about 80% of cases the judges take the Advocate-General’s advice. Although this could mean savings for the pub trade, it’s unlikely that Sky will take this lying down. It could in fact choose to bring charges in the EU up to the same level as UK charges. It could also have ramifications for football clubs.

More than a hundred bartenders have joined the newly set up Scottish Society for Professional Bartenders. The Society set up by Martin Duffy, aims to operate as a not for profit organisation guided by the needs of the members. A Treasurer, Iain McPherson of the Voodoo Rooms, is in the process of being appointed. While the society is now on the lookout for a President, someone willing to give up some of their time to be involved in planning activities, and act as an ambassador and spokesperson to answer any press inquiries. There will also be three vice presidents to cover Glasgow/Strathclyde/Southwest-Aberdeen/Inverness/Highlands; Edinburgh/Fife/Borders. If you would like to volunteer yourself for any of these roles please get in touch. www.ilascotland.org.uk. The plan is to charge an annual membership fee of £15.

High Commissioner whisky as well as Glen’s vodka and other brands at Alexandria, near Dumbarton. It also owns Glen Catrine Bonded Warehouse. Sales rose to £17.8 m from £16.4m in 2009 and gross profit nearly doubled to £550,703. SABMiller, the brewer behind Miller MGD, Peroni and Grolsch has posted a 3% rise in quarterly volumes while higher beer prices helped boost revenues by 6%. The third-quarter update showed strong volume growth in Asia and Africa, volume dips in both North and South America and

flat after sales in Europe. But growth in the UK and Ukraine. In 2010 the annual rate of business insolvencies fell for the first time in two years as the financial health of UK businesses improved, according to the latest Insolvency Index from Experian®, the global information services company. The good news is that Scotland maintained the lowest rate of insolvencies in 2010. JD Wetherspoon said sales growth accelerated in its second quarter as cheap beer and breakfasts lured in more cash-

PRESTWICK OPPOSES WETHERSPOON PUB JD Wetherspoon look like facing a legal battle in Prestwick if they want to open one of their pubs in the town. Objectors to JD Wetherspoon are considering a legal battle with the pub chain who have secured premises on Main Street. Objectors, who wanted South Ayrshire Council to refuse the licence for the pub due to the ‘over-provision’ argument. were told this wasn’t a valid objection. Now objectors are considering a judicial review at Edinburgh’s Court of Session. Any court battle could last up to two years, leaving Wetherspoons unable to touch the Prestwick property during the case. Objectors believe they can win the case. Councillors who granted JD Wetherspoon its licence said their “hands were tied” by case law in Aberdeen, during a similar battle between Tesco and the local authority. However West Dunbartonshire has adopted an ‘overprovision policy’ in 15 of 18 areas within the council area.

strapped customers. The company has revealed that sales at pubs open more than a year rose by 3% in the 12 weeks to 16 January, compared with a 1.6% increase in the quarter to 24 October. The company aims to open its 50th pub in Scotland in March, and has said it was confident of a "reasonable performance" in 2011. Boss Tim Martin, said there was no sign yet of any impact on trade from January's hike in VAT, but he suggested there may be an effect as the full implications of the rise hits consumers. DRAM FEBRUARY 11

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BAR NEWS NEW INN FOR TOWNHOUSE RESTAURANTS osie and Malcolm Binnie the people behind The Boathouse in Kilysth and the Wheelhouse in Falkirk are just about to open the The Inn at Longcroft in Bonnyrigg. Malcolm told DRAM, “The Inn has always been on our radar, but it has been closed for a while. It’s a S&N lease, and we saw it as a wee opportunity. We’ve both put some money in. It’s nothing like either of our current places. It’s a casual pub, offering casual food with 90 covers. It will appeal to a different market than our other two venues. I’m sure it will work out well for S&N and for us. It’s a new challenge.” The Inn will open at the end of February.

M e a n w h i l e Malcolm reports that his other restaurants are doing well. He told DRAM, “Business since the beginning of January has been flying. And the last two weeks, particularly at the Wheel House, have been fantastic. We had one of our busiest Saturday’s for two years. We are doing summertime figures. It’s great.”

AURUM TARGETS FRESH GROWTH Aberdeen’s AURUM nightclub has appointed James Hendry as its new general manager as it gears up for a period of growth and expansion in its second full year. James will spearhead the drive and build on the early success of the venue. The club reported a turnover of £800,000 in 2010 and is now aiming to hit the one million mark in 2011. James has worked in the hospitality industry for more than 20 years including 15 years in Canada. The 40-year-old, who was born in Peterhead, helped to build up and establish clubs like Light, Mink, Embassy and Tryst in Toronto and he’s now applying the same principles to Aurum. He says, “The Canadian scene is based on Las Vegas and I’m now trying to bring a little bit of that approach to Aberdeen.” Lost Souls is a new Glasgow bar diner on the site of the former Uber Lounge at 150 West Campbell Street. From the same folk that brought us Sauchiehall Street, Firewater, the new bar is promoting itself as a 'gin joint, and bourbon bar.’ Open from 12 noon until late, the bar also of fers an inexpensive food menu. Meanwhile former co-owner of the Uber Lounge, Jim McLauchlan, is set to open a new venue on Drury Lane of the site of the former O’Henry’s.

HILTON NEWS The Hilton Edinburgh Grosvenor is currently undergoing a £1.3m refurbishment of its bedrooms and meeting space, including a complete overhaul of its Grosvenor Club wing. The refurbishment which will be completed next month aims to transform the lobby lounge area, reception space, all 53 bedrooms and bathrooms in the annexe as well as introducing a new meeting space for up to 10 delegates. In addition, guests will be welcomed through a new stunning steel and glass reception area on Grosvenor Street. Steve Hall, General Manager, said, “This refurbishment will be a fantastic boost to our FEBRUARY 11 DRAM

existing offering as well as considerably enhancing the experience for our guests. Interior design company Cunningham McLean Partnerships was given the task of transforming the wing. Meanwhile Mike Metcalfe has been appointed as the new general manager of Hilton Dunkeld House in Perthshire, taking over the mantle from John McLaughlin, who will become general manager at Hilton Reading. Metcalfe joins Hilton Dunkeld House from The Landmark Hotel in Dundee, and is re-joining the Hilton family having previously occupied the position of general manager at Hilton Aberdeen Treetops.

Mitchells and Butlers has taken over The Tron in Edinburgh and is planning to turn it into an O’Neill’s in time for St Patrick’s Day. The new venue will be totally rebranded, and feature live music venue. It will cover three floors and its exterior will now be an emerald green colour. It will open to 1am. The owners of Glasgow venue Box have also taken on Nico’s, further along on Sauchiehall Street. Edinburgh restaurant Chop Chop is to open its first branch in Glasgow. The restaurant, a former finalist in Gordon Ramsay’s ‘The F Word’, plans to open in May, which will bring the number of Chop Chop restaurants to three. General Manager Roy King comments, “We're planning to open three restaurants this year and the goal is to make Glasgow the first one. Then we'll look at other places that are not too far away, ideally somewhere like Newcastle or maybe Aberdeen.” A new Mansion House venue will replace Novus Leisure’s Tiger Tiger on Glassford Street. The company has spent £1m transforming the venue and have created a new pub, cocktail bar theme bar, state-of-the art karaoke rooms, restaurant, nightclub and comedy lounge. With a capacity of 2,000 it will be one of Glasgow’s largest late night venues. The company has not only been recruiting for bar staff but for singers, dancers and roller skaters! It will open next month. Ian Brown, previously head chef at The Ubiquitous Chip opened his own Southside restaurant just before Christmas, called the Ian Brown Restaurant. At the Chip it was Scottish cuisine that was his forte, but at his own restaurant he has included Mediterranean influences too. It’s at 55 Eastwoodmains Road. A new 60-bedroom Premier Inn hotel has just opened in Dumbarton creating 50 new jobs. The hotel also boasts a restaurant called the Malt & Myre within the Lomondgate development.

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DRAM NEW YEAR 2010 WAS A YEAR WHEN PLENTY HAPPENED. BUSINESSES OPENED AND SOME CLOSED, MD’S WERE APPOINTED AND SOME LEFT THEIR POSTS. THIS MONTH THE DRAM AWARDS ITS NEW YEAR’S HONOURS. THEY GO TO PEOPLE WHO MADE THE NEWS IN 2010, AND SOME WILL CONTINUE TO MAKE THE NEWS THIS YEAR TOO. THE RECIPIENTS HAVE GOT THEIR GONGS FOR THEIR CONTRIBUTION TO THE TRADE… OR PERHAPS I SHOULD SAY THEIR CONTRIBUTION TO KEEPING THE COLUMNS OF THE DRAM FILLED.

THE GONG FOR DOGGED DETERMINATION Goes to Karen Murphy, the Portsmouth landlady, who has taken on the Premier League and Sky and so far, has won. The recent ruling at the European Court of Justice, which said that blocking her right to use far cheaper Greek decoders to screen matches breached EU single market rules could have positive ramifications for every licensee in the country.

CUSTOMER SERVICE GONG The gong for Customer Service goes to John Black at the Fort Hotel in Broughty Ferry. He actually etches the bottom of old fashioned beer glasses to give his customers, who prefer them, the nucleation that modern glasses have. That is going the extra mile for your customers.

COMING OF AGE GONG Donald Macleod, the lovable rocker, has actually started to get a buzz out of weekly sales figures… and can tell you why sales have gone up or down… changed days indeed! The Coming of Age gong goes to him.

GOING IT ALONE GONG Janet Hood is the recipient of this gong. She left the BII last year and has set up as Janet Hood Consulting. As one of the most knowledgeable legal folk in the trade I know, I’m sure her advice will be eagerly sought. Good Luck.

THE GONG FOR BEST OPENING NIGHT This goes to the Grand Central Hotel. It may have opened at the tail end of the summer, but management waited until the whole hotel was open for its official opening party, which took place earlier this month. And what a party it was. By far the best organised, best canapés and of course best company of any I have been to in the last few years. FEBRUARY 11 DRAM

GONGS QUICK EXIT GONG This goes to Jim Young, former MD of Belhaven. He was appointed MD last May and was gone by the October. He’s been unusually quiet for once! No doubt we will see him re-appear in the drinks industry, once his contractual agreement has run out.

GONG FOR DREAM SALES TEAM Uncle Bob Taylor has teamed up with Fiona Sweeney to look after Chilli Marketing’s brands Rekorderlig and Cusquena in Scotland. These two are the most down to earth reps on the planet. Expect to see the two make even more of an impact on the Scottish market! .

BEST PRODUCT LAUNCH GONG Last Spring Gordon & MacPhail hired Edinburgh Castle to launch Mortlach 70 year old, the world’s oldest whisky. Whisky journalists from around the globe attended, the barrel was piped in, TV coverage and media coverage was impressive, and the £10K decanters sold out. That’s what I call a result!

ROMANCE IS IN THE AIR GONG This has to go to the Montpelier employees present and past. Both David Hall, General Manager at Montpeliers and David Johnston, Development Director, got married within months of each other. And former colleague Peter Wilson, of Renaissance Ecosse also married. Congratulations to them all. Love is in the air!

GONG FOR PROCRASTINATION This goes to the Scottish Executive. Despite pledging to curb deep discounting in supermarkets, once again the date has been pushed back. This time to October. Here’s betting the next date will be after next Christmas!

GONG FOR NEARLY LENGTHIEST TAKE-OVER George Thomson, Iain Cumming and their fellow directors finally managed to complete the buy-out of Forth Wines in the summer. The saga took them nearly six months. 2011 will be their first full year in charge, and no doubt their journey has not been without its challenges. Here’s to a successful year and a gong! DRAM FEBRUARY 11

A SPIRIT FOR ALL SEAS RUM IS ONE OF THE MOST TALKED ABOUT SPIRITS AMONGST BARTENDERS AND NOW CONSUMERS ARE GETTING IN ON THE ACT TOO. SUSAN YOUNG REPORTS.

he beauty of rum is its versatility and diversity. It has been one of the most popular spirits in Scotland for decades, the only difference between then and now, was that the majority of consumers probably didn’t realise they were drinking rum… such was the power of Bacardi. Our love affair with rum continued when Morgan’s Spiced arrived on the scene. It’s hard to believe that it is more than 15 years since this brand launched here. Morgan’s can certainly claim the crown for the most successful spirit launch in Scotland ever, and it is still the number one brand in the golden rum category. How many other Scottish spirit launches have gone on to be one million case plus brands? While some mixologists may turn their nose up at this populist brand, there is no doubt that consumers love it. The great thing about Morgan’s Spiced is that its advertising still catches the eye and obviously appeals to consumers. Last year it ran its Morgan’s Spiced® ‘Modern Adventurer’ campaign while this year the brand is going to be investing even more in Scotland come May. But consumers also seem to be getting some of the bartenders enthusiasm for premium brands, possibly driven by the fact that city centre bars are stocking more rum and there have also been a number of bars specialising in rum that have opened too - The Ivy in Glasgow, Tiki Bar in Bath Street, with Mansionhouse, formerly Tiger Tiger, set to open their version of a Tiki bar in Queen Street next month, while Edinburgh Rum bar, Rumba has been open for a few years. (Although it is currently up for sale). Originally the Tiki bar phenomena started out in the late 1940’s following the return of US sailors from war (think South Pacific). They had got used to drinking rum cocktails in fun bars while stationed in the Polynesian islands. And when they got back to the USA they brought the idea back with them. The trend hit London about five years ago. Since then bars and clubs such as Mahiki, Artesian at The Langan Hotel, Trader Vic’s, Trailer Happiness go to show that Tiki-style bars are crowd pleasers and the cocktails they offer go down a storm. They include a Mai Tai, Zombie, Pina Colada and Swizzle. Says

FEBRUARY 11 DRAM

Ross Purnell of Treacle, “I’ve really noticed a trend towards Tikistyle cocktails. We’ve always had cocktails such as the Zombie and Mai Tai, and despite the fact that the Zombie is one of our

TIKI BAR

most expensive cocktails, it is selling well.” Ian McColm of the Tiki Bar in Glasgow also does well with his Zombies. He told DRAM, “Rum sells well here. The Tiki theme offers a certain escapism with its tropical cocktails. We are selling 14 cases of rum a month, and our most popular rum is Brugal. We’ve also sold 312 Zombies in two months.” With the Tiki Bar’s Zombie cocktail coming in at £11, that is good going. Its not just the current trend towards Tiki that is making rum a success story. It seems that the variety of rums on offer appeal to all ages and sexes and demographics. It also appears that dark rum is making a bit of comeback. Once there was OVD, Demerera and Blackheart (the latter has now all but disappeared) and these rums were often drunk by the older generation with peppermint – dark rum and pep. Today it seems that the age group drinking dark rum is getting younger. Not young, but younger. Marblehead is putting more emphasis on Skipper rum, which it owns, probably one of the few rums actually owned by a Scottish company, while the likes of OVD is holding its own. There’s also a few premium dark rums that have now come onto the scene – Marblehead are pushing Kraken, Cruzan boasts a dark rum and there is also an Angostura Dark. Ervin Trykowski of The Ivy comments, “The reason why rum is

SONS AND ALL AGES performing so well is because it is so versatile from a bartenders point of view. It can be used in so many ways which is why it works so well in cocktails. Each brand is completely unique and with rum not being from one place, they all have their own story, and mixability factor. Bartenders becoming more passionate about what they are selling behind the bar and because they are more knowledgeable they are more confident about suggesting certain drinks.” He continues, “ Our three most popular rums include VXO which flies out the doors; Zacapa is another popular one and we are finding that Mount Gilboa is popular with whisky drinkers who want to try something different.” While Ross at Treacle says his most popular brands are, “Appleton VX and Havana Club. Appleton have a good brand ambassador in Edinburgh.” Historically too rum has appealed to a wide range of people from sailors to writers, from pirates to actors, it has a bit of a reputation as being the ‘bad boy’ of the spirit world. Anything goes when it comes to drinking rum.

Mai Tai The Mai tai was invented in 1944 by Victor Bergeron, also known as Trader Vic. (serves 1) 2 measures white rum half measure apricot brandy half measure orange curacao half measure lime juice half measure pineapple juice Garnish: cocktail cherry, pineapple cube and slice of orange

The Zombie Donn Beach, formerly known as Ernest Raymond Beaumont-Gannt created the Zombie cocktail in the mid 1930s. (serves 1) 1 measure dark rum 1 measure white rum half measure apricot brandy 2 measures pineapple juice half measure lime juice 2 teaspoons powdered sugar Garnish: cocktail cherry and pineapple wedge.

COUNTRY OF ORIGIN Barbados: Mount Gay probably the oldest operating Rum producer in the world. Also Cockspur Rum. Bermuda: Goslings Brazil: produces vast quantities of mostly light rums from column stills with unaged cane spirit called Cachaça (ca·sha·sa) the best-known example. Rums include Oronoco.

Guatemala: Ron Zacapa Jamaica: is well known for its rich, aromatic rums such as Appleton Estate and Myer’s. Puerto Rico: has more than 200 brands of rum. The island produces more rum than any other nation in the world and is responsible for 80% of all the rum consumed in the United States. It’s the home of Bacardi.

Cuba: best known rum is Havana. Trinidad & Tobago: Angostura, Kraken The Dominican Republic: Brugal and Ron Barcelo. Guyana: is justly famous for its rich, heavy Demerara Rums such as Skipper Rum, El Dorado and VXO.

The Virgin Islands: produce predominately light, mixing rums the most significant being Cruzan.

DRAM FEBRUARY 11

A SPIRIT FOR ALL SEASONS AND ALL AGES A POTTED HISTORY potted early history of rum follows, but you can find more about it on the internet or from some of the rum ambassadors that are based in Scotland. Of course, it was sugar, not rum, that Europeans were after when they first began to cultivate sugarcane in the West Indies in the 17th century. Christopher Columbus originally carried sugarcane (a giant grass native to India) to the New World.

The environment of the Caribbean proved perfectly suited for growing cane, and Caribbean sugar quickly came to satisfy Europe's sweet tooth. Converting cane into sugar is an industrial process that produces by products: cane juice and molasses and Caribbean islanders were quick to catch on and by the 1650’s they began converting these by products into cheap liquor, known first as Kill-Devil in the English colonies (from its tendency to cause a nasty hangover or its perceived medicinal power, take your choice) or rumbullion (origins uncertain), which was shortened over the years to our modern word Rum. The French render this word as rhum, while the Spanish call it ron. Locally, Rum was used as cure-all for many of the aches and pains that afflicted those living in the tropics. Sugar plantation owners also sold it, at discounted prices, to naval ships that were on station in the Caribbean in order to encourage their presence in local waters and thus discourage the attentions

of marauding pirates. The British navy adopted a daily ration of a half-pint of 160 proof Rum by the 1730s. This ration was subsequently modified by mixing it with an equal amount of water to produce a drink called grog. The grog ration remained a staple of British naval life until 1969. Rum became popular in the American colonies because it offered an option to wine and beer often spoiled on its way from Europe and neither beer-making grains nor wine-making grapes grew well in the soils and climate of the original colonies. While rum from the islands was cheap and plentiful. However the story of rum is not all fun…originally the Caribbean sugar industry condemned thousands of Africans to slavery in the Americas. Like three points of a triangle, islands of the Caribbean sent molasses to New England; in turn, New England shipped barrels of rum to Africa, where it was used to buy slaves; and finally, slaves were taken to the New World to produce more sugar and molasses, further fuelling the Triangle Trade. Pivotal moment: 1920’s and Prohibition – then the Americans started travelling to Cuba for a drink, and the alcohol of choice was rum!

FUN FACTS

• Rum was the equivalent to gold and used as currency in New England at the end of the 17th century. • Jamaican rum is inspired by and uses a similar aging process to scotch whisky

SHAMPOO

• Rum was partly responsible for the American Revolution.

• July 19th is National Daiquiri Day? • Dunderhead – rum wash is called Dunder. • Australians have used rum to wash their hair! FEBRUARY 11 DRAM

JULY

* ( / %( * %" (+) Expertly blended to taste great with cola, a variety of long mixed drinks and cocktails, itâ&#x20AC;&#x2122;s no surprise the brand is enjoyed by over three million loyal consumers.2 Over the next year, weâ&#x20AC;&#x2122;ll be placing ÂŁ5m behind the brand, and our national campaign will drive trial of over one million consumers. Make sure you have plenty of stock. After all, for big returns you should always invest in gold.

1. CGA, GB On Trade, May 2010. 2. Millward Brown, January 2010. The MORGANâ&#x20AC;&#x2122;S SPICEDÂŽ words and associated logos are trade marks. ÂŠ Captain Morgan Rum Co. 2010.

Morganâ&#x20AC;&#x2122;s SpicedÂŽ is the third biggest spirit in the Scottish on trade and is the number one golden rum-based spirit, part of one of the only spiritsâ&#x20AC;&#x2122; categories currently in growth.1

WHUPPITY OR WHIPPITY? STUART MACKENZIE IS A DIE-IN-THE-WOOL PUBLICAN. SUSAN YOUNG CAUGHT UP WITH HIM IN ERSKINE, WHERE HE HAS FINISHED REFURBISHING THE WHUPPITY SCOURIE. Erskine, which became the second Whuppity Scourie, which hen Stuart Mackenzie took on the lease of was eventually sold to Eagle Taverns. Says Stuart, “The Erskine’s Whuppity Scourie last August it was a Erskine pub was the most successful out of the group. Eagle case of deja-vu. Some twenty-two years ago, he paid aroud £475K for the Whuppity Scourie alone. This was had owned it with business partner David Holmes, before around about the early-mid 1990’s, we were just going into selling it to Eagle Taverns. a recession. Money from the banks became tight. Just like Says Stuart, “When we owned it back then we turned it into now. So we sold off what we could and then folded the a great pub. We had to refurbish it, of course but it was company. I then bought Macintosh’s in Dalmuir and carried worth it because before long we were turning over around a on.” million. A few years later Eagle Taverns made us an offer we He continues, ‘I dabbled in a few other businesses too, such couldn’t refuse. as a franchise business, and built the Dalmuir pub up before The Erskine pub wasn’t his first. Indeed his first pub was in selling it to Lomond Inns after a couple of years.” Clydebank, and it was also called Whuppity Scourie. Stuart It was around this time that he bought the Iron Horse in explains, “A company came up with a few names for us, and West Nile Street after former owner, John Furlong, who had we chose Whuppity Scourie, but we spelt it wrong, and ever called the pub Furlong’s, went since we have continued with the bankrupt. Says Stuart, “This was wrong spelling. (The name a great pub. We renovated it and comes from traditional Lanark put the function suite in and built event which takes place in March the business up and than again which is thought to be a ancient sold it, this time to a friend of religious penance in which mine Eddie Brooks, who still owns penitents were whipped three it today.” times round the church and He continues, ‘I enjoy taking a pub afterwards "scoored" - washed over, refurbishing it, building the in the nearby River Clyde with business, but then I get bored Scourie spelt Scoorie). and want to move on. I don’t He continues, “My first Clydebank form emotional bonds with the pub, which I took on in 1985, pubs, they are a business. For used to do £22k - £23K a week. instance when I buy my We used to have Ross King and customers a drink I take the cash Gary Marshall on as DJ’s on a from my pocket, as far as I am Tuesday. On this night alone we concerned, what’s behind the bar could do £4K. And at the CROSS KEYS, MILNGAVIE belongs to the business.” weekend if you weren’t in The other pub which he owns is the Cross Keys in Milngavie. Whuppity Scourie’s by 7pm you had to queue, often round It is a Punch lease, as is the Whuppity Scourie. He runs this the block.” with son Craig who came into the business two years ago It was while he had the Clydebank pub he overheard a couple when Stuart bought the Milngavie pub. Today, the pub has discussing the upcoming Glasgow Garden Festival and the been transformed. Says Stuart, “When we bought the Cross opportunitiy for someone to run the bar and restaurant Keys it was done out like a John Barras, we had to there. Seeing a good business opportunity Stuart met with completely refurbish it. We have created a new food area by the company behind the Glasgow Garden Festival and got the simply putting a wall in between the bar and restaurant area. opportunity to run the Four Winds. Stuart says this was one Food sales have gone up from £100K a year to £300K. of the highlights of his licensed trade career. He explains, Milngavie is a good area, and we do get a lot of tourists ‘There was such a buzz about the place and the restaurant which is why we also have a 100-strong whisky list. We’ve and bar were really busy. We had it open for 26 weeks and also got a nice outdoor area there, but I have just taken out the money we made was phenenomenal.” Sky. It just didn’t pay. But we do have live music at Milngavie, Once the Garden Festival was over he felt a bit flat, but this is what led him to set up business with David Holmes, a and I would hope to do some here in Erskine too.” former Chairman of Rangers, and the two bought over a Since he has had the Whuppity Scourie, he has spent in the company called Rowan Leisure, which had various pubs and region of £150K refurbishing the pub and creating more of hotels throughout the country including the Central Park in a food experience, for the locals in Erskine.

FEBRUARY 11 DRAM

DRAM FEBRUARY 11

ALLAN MAWN 13 SEPTEMBER 1956 – 18 JANUARY 2011 Stuart explains, “When I bought it this time round it was called Jade’s, and was certainly more of a younger persons venue, more disco than foodled. It also had various issues when it came to the clientele. But now I believe with the refurbishment complete, the clientele too has changed for the better. We are now getting lots of couples, and people coming in for food. We are now turning over some where in the region of £7K a week in the restaurant. Although our bar takings did suffer when we started excluding our problem customers, they have started to go up. I do believe that this year, if everything goes to plan, we will turn over in the region of £850K.” However I get the feeling that he is getting ready to move on here too. Says Stuart, “It is up for sale. Craig and I would like to buy a hotel with 40 or more bedrooms, which we can both work in. And we have been looking, but haven’t found anything to date. I think my job here is done. It’s been funny coming back. I thought people would come because they remembered me, and they have, but it has been more difficult than I thought it would be.” Stuart is certainly steeped in the trade. He tells me, “I do love it. But I can’t understand people who stand in front of a bar, and think they can run one. They don’t realise it’s a 24-hours, 7-day a week job. And it’s not easy making money and its not easy dealing with staff issues. I remember when you could fire someone because you didn’t like them. Today you can’t even fire someone for not doing their job. Changed days indeed. Having said that I have a great manageress here now and a good team.” Stuart admits that he is an old school licensee. He tells me, “The man I looked up to was wee Joe McCabe who had McCabe’s in Largs. He’s now been dead 15 years, but you didn’t mess with him. He was only about 5ft, but was a well respected publican, he also owned the Forum in Yoker. Over the years I have abided by what I learned from him. I’m quite hard publican, it’s my way, or no way, but this works for me.” He continues, “As a result I can sort out problems quickly. There are 40,000 people in Erskine and only two other pubs, and no restaurants to speak of. They have no decent place to go. The more that good people come to Whuppity Scourie, the more good people come. Even the police have been impressed at how much our clientele has changed.” I asked him “Now that you are 60, have you not thought about retiring?” Stuart replied, “No way, I’ve another 20 years in me. I don’t go on holidays or have any hobbies. I do like to eat out, particularly at the Ho Wong, and I enjoy being on top of the business. I love it when you can see the fruits of your labour. And I enjoy working with my son, but he mainly looks after Milngavie, and I am mainly here. So it would be good to have both of us in one place and to own the freehold, that would be my next move.” Meanwhile business continues to build at the Whuppity Scourie, Erkskine and at the Cross Keys in Milngavie, while Stuart looks for his next acquisition.

FEBRUARY 11 DRAM

Allan Mawn was a great friend of mine. I met him 33 years ago when he was an agent and I was an agent and band manager. We had lots in common in terms of music. In the 30 odd years that I have known him we have done a lot of business together. For instance we jointly looked after the commercial management of Rangers and Celtic’s first teams, promoted bands together and had venues together. We’ve experienced a lot of ups and downs. From the day I met him I knew he was an extrovert. He was also a bon viveur and entrepreneur and an eternal optimist. For instance he was a late starter when it came to driving. When he came to sit his test he bought a brand new Fiesta for the occasion. His next car was a Porsche and the next a Jensen! One day I met him in town and he opened the boot of the Jensen, inside was a bottle of champagne and langoustines chilling on ice. I asked what he was up to, and he replied, it was just in case he met someone! To him life was a party and one of the reasons that people loved him was when he was around it was always a party. If you ate at his house you would have the first course around 8pm, the second at midnight and you might not get the third course, because by then the party would be in full swing. Mind you he did live up to his name on some occasions – being prone to a ‘moan’. He was pernickety and would go off the handle at simple things like people spelling his name wrongly, or someone dicing a pineapple instead of slicing it. He could be easily upset. The first restaurant he ran was the Widemouthed Frog in Oban. This restaurant was one of the best seafood restaurants I have ever eaten in. Even the local gentry ate there – the Earl of Dunstaffnage. It was lovely to see some police from Oban at the funeral. His next venture was Barcelona in Byres Road, a Spanish restaurant, which although small, was wonderful. After that he moved back into commercial services working with Strathclyde Union and then Northumberland University, before he came back to one of his real loves ‘food’. He opened Pinxto in Dumbarton Road, then opened the premises next door and called it Velvet Elvis, and late last year opened another bar and restaurant Criterion, also adjacent. In last few months of his life I saw him happier than at any time I have known him. He was happy in his private life, he had a successful business and a classic Mercedes sports. The only thing he needed was a haircut. The night before he died he was at Pelican Café, his favourite Glasgow restaurant. He took all his staff and suppliers and had a fabulous night. Full of great wine, fabulous food, and many of his best friends. It was a party. It was so like him. If anyone had said to Allan how would you spend your last supper I’m sure it would have been exactly the way he did. He could have written his own script. He was a huge character and between two funerals everyone who was anyone in the West end of Glasgow was there which is a real testament to his popularity. He leaves partner Lindsey, sister Margaret and brother Brian. Eddie Tobin I will miss him greatly.

A FINE MODERN DESIGN FEATURE BY SUSAN YOUNG THE FORMER UISGE BEATHA IN WOODLANDS ROAD IN GLASGOW IS NO MORE, IN ITS PLACE IS DRAM, NO RELATION. SUSAN YOUNG PAID IT A VISIT. aclay Inns latest refurbishment is DRAM, which has taken the place of Uisge Beatha on Woodlands Road. Uisge Beatha was quirky and had lots of nooks and crannies, there was very little natural daylight and the bar was split into various areas and it felt quite small. Today if it wasn’t for a few artefacts from the original bar, you wouldn’t know you were in the same building. The refurbishment undertaken by Michael Dunn and his team, was completed just before Christmas, and what a transformation they have achieved. From the outside the original cream building is now a dark grey. And instead of virtually no windows, the DRAM now has large windows along its frontage, which allows light to flood in. The bar is still divided into different areas, and the original entertainment room has not changed. But the rest of the bar is unrecognisable. For a start it is much more spacious. In fact it is hard to believe that all that space was originally there! There is now one main door to the bar, which takes you into the area where the bar is situated. The original pews remain on the left as you walk in, but the toilets have been moved to the far right of the building. The bar and back bar have been replaced, and the

FEBRUARY 11 DRAM

back bar has been designed as a prominent display area for the DRAM’s extensive range of whisky. Slate has been used to give the back bar depth, and the design element on the front of the bar has nods to its Scottish influence – exposed wooden planks, and metal studs on leather have a decidedly Celtic design. Manager Stephen Little has been at the bar for ten years. He says, “We took everything back to the bare brick, and kept many of the bars original features, as well as bringing back in features which matched. I think the design team managed to keep the look, but modernise it. We didn’t want a site that looked like it had come straight out of a box.” To the right of the bar you go up a couple of steps into the main body of the bar, which is the primary eating area, and where the biggest transformation has taken place. Although the bar had a kitchen, as Uisge Beatha it hadn’t served food for six years. That has now all changed with a full range of kitchen appliances including a new pizza oven being installed. In the main eating area fixed, tan studded leather seating, run the length of the exposed brick and plaster wall, while some of the original Uisge Beatha furniture is also in evidence. Dark green

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DRAM FEBRUARY 11

walls, compliment the exposed stone walls, while different timber clads the new toilets and various walls. Traditional wood panelling is also in evidence. Window seats, dressers, baronial seats, log benches and a couple of booths complete the look. And although there is a fireplace at the far end, there’s no fire, which is a pity. But there are slate tealight holders strategically placed in the chimney wall around a stags head. It’s not the only stags head there are few other stag heads too. There are also a few strategically placed stags heads, gilt framed mirrors and some traditional reproduction paintings, also in large gilt frames. The old artefacts create a good juxtaposition with the modern touches including specially crafted lampshades, and exposed ventilation units.

FEBRUARY 11 DRAM

The original stained glass windows from Uisge Beatha have been cleaned up and now adorn the new windows, and they look great. Says Stephen, “The windows, are really the signage for the bar. It’s definitely got a wow factor, particularly at night. One of the reasons that there is an uninterrupted vista of windows is that one of the doors has been removed. But the original wooden floors and some crazy paving, where one of the bars originally stood, has been retained. Says Stephen, “We are now utilising the full potential of the bar, and we find that customers are using the whole bar and that is great.” It is certainly one of the most modern whisky bars that I have seen. DRAM! 232-246 Woodlands Road, Glasgow G3 6ND T: 0141 332 1622 www.dramglasgow.co.uk

SUE

SAYS just loved Michel Roux’s programme ‘Service’. It highlighted the training that is required to get service right, and that just about anyone can be trained. In this climate it’s a ‘win win’ for licensees that get service right. Not only do they get more in the till, but they get customers coming back. The best service I have had recently has been at the new Stravaigin in Glasgow’s Gibson Street. It was spot on with the waiter even coming back to give us a list of digestif’s that they had in the bar. The food was also excellent. Colin Clydesdale and his team deserve a pat on the back.

Another great night out was the official opening of The Grand Central Hotel. They catered for 1,000 people and didn’t stint when it came to free bubbly and tasty canapés from oysters to mini cupcakes. Nothing was too much trouble. Even Alex Salmond was in fine fettle as he officially opened the hotel. Laurie Nicol, GM of the new hotel, welcomed her guests to the extravaganza and then spent the evening mingling. It was great to see this “grand dame” of hotels, bustling with people enjoying themselves and it was also great to see the delicatessan and restaurant open. I think they should have a party every year, what a great opportunity to catch up with folk!

Congratulations to Julie and Martin Mitchell who have the Best B&B in the world according to visitors who used TripAdvisor. Their B&B, The Old Manse, overlooking Invermoriston, received the accolade in the annual travellers’ choice hotel awards organized by TripAdvisor. Hotel Missoni on Edinburgh’s George IV Bridge was voted the second trendiest hotel in Europe while travellers thought enough of Abbot’s Brae Hotel in Dunoon for it to make seventh place in the best service in Europe table. One of Julie and Martin’s guests said of their visits, “Martin and Julie are remarkable hosts, offering devoted personal attention along with sumptuous cuisine; and were prepared to go that extra mile ensuring our stay was memorable.” Well done to my pal Simon Magnus. He left Oran Mor to go to Gleneagles just over a year ago, and now he has been promoted and will be running the new Clubhouse Bar & Grill there. He’s looking for all sorts of staff from Food and Beverage staff to Commis Chefs and Chef De Partie’s. The hotel is holding a recruitment event on the afternoon of 18th February 2011 at 1.30pm which will incorporate presentations on the company, the new clubhouse concept and a number of assessment/interview activities. If you fancy working with Simon and at Gleneagles then contact Andrew Leaver on 01764 694241. Now I’m sure this wee free advert will at least get me a complimentary overnight!

The date for the crackdown on supermarkets doing discounted offers has now been pushed back to October. The government managed to get the smoking ban through quicker than they have managed to curb deep discounting in the off-trade. Obviously supermarkets have more clout than cigarette companies? ARTISTS IMPRESSION OF THE NEW BAR

The good news is that finally it appears that the “responsible drinking” message is getting through. Recent National Statistics figures reveal a reduction in alcohol-related deaths. The figures also reveal that there were fewest alcohol related deaths in the group aged 35 years and under, with the highest rate in those aged 5574. The group most at risk however appear to be males over 75. If I was a male over 75 I wouldn’t be too worried!

This has been one of these months that I could have filled my news pages several times over. There’s plenty going on from communities having the right to buy, to new places opening. Over the next few months we will be re-planning the magazine to allow more news to be included. If you would like to give me some feedback on what you would like to read, please email me at susan@mediaworldltd.com

In a small office in Rutherglen some twenty years ago, four young men beavered away for Whitbread boss George Swanson. Today these same men are to be found at heading up Scotland’s top beer and pub co’s – Stephen Glancy, John Gemmell, Ken McGown and Graeme Baird… Tennent’s, Heineken, S&NPE and Belhaven respectively… bet they have some stories to tell!

I was very shocked to hear of Allan Mawn’s death last month. He was only 54. Glasgow will be far quieter, less jovial place without him. We had a great night out in the Ubiquitous Chip last year reminiscing about days gone by and talking about his plans for the future. My heart goes out to his partner Lindsay and his great pals, who have all rallied round.

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We provide bricks & mortar...

...it’s you who makes the pub! Running a local pub is not just about serving food and drink, it’s also about serving your community. Hosting charitable events, organising sports matches and puttingon family friendly events are just some of the things that place a pub at the heart of the community. And local pubs are what’s at the heart of Trust Inns’ business. From traditional to contemporary, from rural to high street, we currently have a range of local pubs across the country available to lease. And, we have a range of competitive tenancy agreements that we believe are second to none. Plus with excellent deals such as £60 discount on barrelage, free of tie on wines, spirits and minerals, assignability after 12 months and negotiable packages on rent, you can be sure Trust Inns is the right choice for you. And to ensure you get the best agreement to suit your needs we offer three types of agreements; 1 year Tenancy or a 3 or 10 year Business Development Lease.

If you’re interested in leasing a pub with Trust Inns call freephone 0800 085 3232 or visit www.trustinns.co.uk

Trust Inns Limited, Blenheim House, Foxhole Road, Ackhurst Park, Chorley, Lancashire, PR7 1NY Tel: 01257 238800 Fax: 01257 238801 Email: recruitment@trustinns.co.uk www.trustinns.co.uk

THE FUTURE IS IN BRICKS & MORTAR THE PROPERTY MARKET HAS BEEN TOUGH OVER THE LAST FEW YEARS, BUT BUYING A PUB OR HOTEL IS STILL A VIABLE OPTION FOR ENTREPRENEURS. SUSAN YOUNG REPORTS. o to any licensed trade function in Scotland and licensees will regale you with stories of the glory days, when you could make lots of money out of running a pub. Needless to say most of them are all still running pubs, because they enjoy the business, they may not be making the same amount of cash, but they are still making, in the main, a reasonable living. It is certainly not the same business it was 15 years ago, possibly it’s better when it comes to quality. Standards have gone up immeasurably, and the quality of pubs out there is a far cry from the spit and sawdust outlets of days gone by. The nature of the consumer has changed too, and they are not going out as much as they did in the past. One of the biggest changes is the fact that licensees have to put money back into the business. Regular refurbishments are the norm now, not the exception. Licensees have got to put more into capital expenditure, maintaining and ensuring that their pubs can compete in a very competitive market. However, although Freehold remains the best long-term option, the way property prices have slumped in the last two years, means that for some leases, and tenancies are a safer option. The market, according to Christie & Co, is fairly flat when it comes to buying and selling. However that does not mean to say that there are not plenty of buyers out there, or a lack of pubs for sale. What there is, is a lack of finance. Say David Reid, a Director of Knight Frank,”You used to put 20% down and borrow 80% of the purchase price. Today the maximum you can get is 60%.” He continues, “I think that potential purchasers have to go further afield to raise finance. Many of them stick with their original banks, instead of capitalising on the fact that there are London investors and overseas investors who could be willing to put up the cash. They have to be creative and consider private equity.” He continues, ‘The country house style of hotel is attracting not just the normal hotel buyers, but people who have money are interested in these properties because they are not just a hotel business, but a lifestyle business too. This is an area of the market which I think looks fairly positive.” The recently published Christie & Co Business Outlook, reports that pub property prices dropped just 0.9% in 2010. This compares to a 20.1% decline in 2009. The report suggests that buyers are returning to the market to make selective acquisitions. And Christie’s themselves managed to sell 41% more pubs in than in 2009. Neil Morgan of Christie & Co, comments, “We believe pub prices have reached the bottom end of the curve and stock released by banks and national pub companies will continue to meet demand from regional groups, local entrepreneurs and experienced operators who are looking for affordable opportunities.” An example of confidence returning to the Scottish market would

be demonstrated by the sale, at the tail end of 2010, of the Rhoderick Dhu in Waterloo Street, which went for a reputed £2m. There are a lot of freehold opportunities with a few major pub companies selling off great swathes of their pub estates. However it’s generally bottom end of freehold that is going up for sale. Some of these pubs are a good buy for the right person. This has created plenty of opportunity for independent operators, funding aside, to buy freehold. Says Neil Morgan, “These disposals, over the next three to four years, will provide individuals with affordable opportunities to acquire and operate their own pub businesses and help to stabilise the industry.” There are also a lot more people considering the pub industry as a viable career option, many of them have been made redundant, and have some capital to put down. This is why the opportunity to take on a pub lease is often attractive. And pub companies are crying out for good landlords. Pub companies have also realised that their ‘traditional business models’ need to be revised. The last thing they want is tenants handing back their keys. As a result leases have become a bit more flexible, and area managers are working more closely with publicans to overcome problems. There probably hasn’t ever been a better time to negotiate with pubco’s. It is definitely a buyer’s market. If you have an existing tenancy or lease and you are finding it tough, pubco’s are also prepared to listen and will offer a rent free period, and other help to get you through. But what you have to do is ASK for help. Many deals can give you the kind of support that only a big operator can deliver. You also have the choice of how closely you work with the company. If you are happier sorting out things for yourself - and make enough to keep paying the rent - the company will leave you alone to get on with it. A good buy however is still dependent on a good site. Licensees are seeking out places they think will suit their vision, and appeal to the local market. And of course food will play a big part in the decision. If you cannot afford to buy, but want to expand your business, or set up afresh a tenancy or lease could be the affordable option. Companies such as Trust Inns have a few options available. Trust Inns currently has two types of lease agreement available; the Trust Inns' Business Development Lease (3yr) and the Trust Inns' Business Development Lease (10yr) which are available to licensees in Scotland. They also offer a one year Tenancy Agreement. This was brought in specifically to assist licensees who may be uncertain about the commitment of taking on a pub long term. The one year Tenancy agreement enables new tenants to "stick their toe in the water" with all the benefits of a longer term agreement. Punch have just brought out a new lease agreement, the first of its DRAM FEBRUARY 11

THE FUTURE IS IN BRICKS & MORTAR kind for the industry which will be rolled out this month. Punch Partnerships, the leased division of Punch Taverns PLC, has launched a new lease agreement which offers free-of-tie pricing on tied beer as standard, or the option for Partners to pay less rent in exchange for lower levels of discount on tied beer supplies. The aim is to offer Partners the choice to lease a pub in the way that best suits their individual business development plans. The new lease for the first time removes the traditional rent review, meaning Partners can lock their rental rates in for up to 10 years and incentivises growth by offering increased discounts for above target sales and offers Partners the freedom to access smaller local brewers on a ‘buy one get one free of tie’ basis and will be part of an exclusive online club where members benefit from the combined buying power of the group. Punch Partnerships’ Managing Director Roger Whiteside said, “This represents a fundamental change of approach as we aim to

dispel ambiguity about how the tied pub model works, whilst setting a standard for the industry and building our reputation for trust and value. It provides entrepreneurial Partners a clear choice, to buy their beer at prices equivalent to a free of tie pub if they are prepared to pay higher rent, or keep their fixed rent low and pay higher prices for their tied beer. “The potential upside is significant. For Partners who outperform their barrelage target, we will pay an additional discount of up to £60 per barrel. For example, a pub that sells an additional 70 barrels, could achieve an additional payment of £4,200.” He continued, “We’ve also completely removed rent reviews so there is no uncertainty for Partners on future rent levels (although a Partner can call a review if they choose) and there is no Brulines flow monitoring. We hope that this will set a new industry standard.” So it’s all change. Hopefully for the better.

Glenan Lodge Guest House, Tomatin

Havelock House Hotel and Henry's Coffee Shop, Nairn

Scaranish Hotel, Isle of Tiree

• Charming, traditional Scottish 8-bedroom AA 4-Star licensed guest house • Consistent trading performance with excellent rising turnover and profitablity • Includes fishing rights on a 2 mile beat of the River Findhorn • Generous owner’s accommodation and self- contained ground-floor flat • Spacious gardens with views over the Monadhliath Mountains

• Excellent quality hotel, with separate coffee shop and bistro • Superb central trading location in the busy, ever popular, coastal town of Nairn • Strong year round operation with good profitability from complementary income streams • Five comfortable letting rooms and good quality owners’ accommodation • Substantial property within Spa town with sea views and a beach 5 mins walk

• Substantial Hotel in a unique trading location on the tranquil Isle of Tiree offering superlative coastal views • A true lifestyle, home and income opportunity which would suit a couple • Trading profitably on strong and sustainable mixed trade but with considerable potential for further growth • 8 good quality bedrooms and 2 bedroom owners’ accommodation plus staff accommodation • Set within extensive grounds with excellent development potential subject to planning consents

Confidential valuations without obligation No Sale No Fee Please contact Paul Hart on 07799 896931 or Heather Moorhead on 01463 236123

York House, 20 Church Street, Inverness IV1 1ED Tel: 01463 236123 Email: info@asgcommercial.co.uk www.asgcommercial.co.uk

Fixed Price £478,000

Offers Over £485,000 (Freehold)

Offers Over £395,000 (Freehold)

Columba House Hotel and Garden Restaurant, Kingussie

Star Hotel, Nairn

Uig Hotel, Isle of Skye

Spean Bridge Hotel, Spean Bridge

Castle Arms Hotel, Mey, Caithness

• High quality 3-Star (STB) 13-bedroom en-suite hotel in Cairngorm national park. • An outstanding property presented to an exceptional standard ready to operate • Profitable, “home and income” lifestyle opportunity • Set amidst spacious grounds and beautifully maintained mature gardens

• A substantial Highland Hotel operating principally on wet sales but with strong trading figures and good profitability • An excellent business development opportunity for a motivated couple • Excellent central town-centre trading location in the ever popular seaside town of Nairn • Includes 3 bedroom owner’s accommodation and 6 letting bedrooms

• Attractive and traditional, fully Licensed, VisitScotland 3 Star Hotel • Stunning coastal views and superb trading frontage to the busy A87 • Strong turnover and excellent profitability from established year round trade • 18 comfortable en-suite letting bedrooms plus spacious owners accommodation

• Substantial Highland hotel set within the heart of the Great Glen • Excellent year-round trading performance with positive profit conversion ratios • A mix of accommodation facilities to include en-suite rooms, chalets and bunkhouse facilities amounting to 34 letting units • Outstanding development subject to planning consent

• Attractive and long established traditional licensed village Hotel incl. a retail outlet adjacent to Castle of Mey • Highly prominent trading location on busy cross country route • Traditional facilities retaining many attractive features and character with modern upgrades • Deceptively spacious subjects with circa 5 acres of land with business development potential (subject to planning consents)

Offers Over £675,000 (Freehold)

Offers Over £295,000 (Freehold)

Offers Over £650,000 (Freehold)

Offers Over £595,000 (Freehold)

Offers Over £265,000 (Freehold)

FEBRUARY 11 DRAM

Passionate about Scotland?

So are we. Business Opportunities

Edinburgh

If you're a budding entrepreneur with a passion for running your own business, then Punch Taverns is your perfect partner. Our award-winning training programme will get you up and running and a dedicated Business Relationship Manager will work closely with you to develop a long-term plan for your pub. Support from Punch is ongoing, from licensing and financial planning to marketing and people management. Your success is our success and we are committed to giving you all the support you need to build a sustainable business.

To see all our current opportunities, visit:

www.punchpubs.co.uk Or call 0844 848 3264 PA S S I O N AT E A B O U T O U R P U B S

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DRAM DRINKS RETAILING AND MARKETING PUBLISHED BY MEDIA WORLD LIMITED UPPER FLOOR / FINNIESTON HOUSE / 1 THE STABLES YARD / 1103 ARGYLE STREET / GLASGOW / G3 8ND t. 0141 221 6965 e. dram@mail.com web. www.dramscotland.co.uk Editor: Susan Young • Chairman: Noel Young • Production Manager: Natasha Knox • Advertising Manager: Lynn Kelly • Advertising Executives: Martin Cassidy, • Administration: Kate Robinson Published by Media World Ltd. Subscriptions: DRAM is available by subscription for all other qualified persons involved in the Scottish Licensed Trade at the rate of £42 per annum including the DRAM Yearbook. The publishers, authors and printers cannot accept liability for errors or omissions. Any transparencies or artwork will be accepted at owner’s risk. All rights reserved. No part of this publication may be reproduced in any form without the written permission of the copyright holder and publisher, application for which should be made to the publisher. Articles published in this magazine do not necessarily reflect the opinions of the publishers. © Media World Limited 2011.

NOVEMBER 10 DRAM

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