Beer // Hand in hand

Pubs and beer go hand in hand, so it’s no surprise that when pubs were forced to close, it was the breweries who were among the first to show their pub partners support – and have continued to do so over the last two months.

PUBS HAVE been under immensepressure in the last two months. For allthe good of pivoting to takeaway anddelivery models, it still does not makeup for the normal turnover a venuewould make with its doors open, themusic pumping and the beer flowing.

The industry was shellshocked at theend of March when venues were forcedto close, with operators trying to gettheir heads around how to keep theirbusinesses afloat and their staff employed.It didn’t take very long to realise that cashflow was going to be a real problem.

Stomping Ground has donated 5000 schooners of beer to pubs across Melbourne

Putting your money where your mouth is

Within a fortnight of the announcement,the two biggest brewers in the country – CUB and Lion – had stepped up with initiatives to help support their pub partners in any way they could. Lion immediately announced that it would credit any unused kegs that would otherwise go bad, and to put a little more money back into the coffers.

Within the first month, Lion had credited more than 4000 venues nearly $23.5 million for approximately 85,000 kegs. It has also cleaned over 10,000 couplers and other pieces of draught equipment for its venue partners.

“We remain absolutely committed to doing everything we can to support licensed venues during this challenging period,” says managing director James Brindley.

Peter Filipovic, CEO of CUB (left) and Bob O’Kane, owner of All Nations Hotel

At CUB, the company identified cash flow as a major problem from pubs early on in the crisis, and quickly started the ‘For the Love of Your Local’ campaign. Through the initiative, the public could purchase a $10 voucher for 2-for-1 pints of Great Northern Crisp or Carlton Draught when their local re-opened, with the money to go directly to their nominated pub.

The scheme started with a target of raising $1 million, but after smashing the goal late last month, CUB has doubled the target to $2 million.

“Some venues are facing the prospect of never opening their doors again if they don’t get cash flow. It is an unprecedented challenge, not even during the world wars or the Depression did the pubs close,” stated CUB CEO Peter Filipovic.

“But we know Australians want pubs and clubs to keep their place at the heart of many local communities once this crisis is over.”

Welcome support

Once many venues began to adapt to a new takeway/delivery model and were granted the license conditions to sell takeaway alcohol, CUB and Lion also stepped up by supplying partners with the squealer and growler bottles necessary to sell takeaway draught beer.

All of these initiatives have been welcomed by publicans across the country who have been looking for fiscal relief in any form they can get it. “Lion have been fantastic during the last few months – taking back all our kegs and giving us a credit for them so that when we are reopened, we can get a new opening stock and we haven’t had to pour the existing stock down the drain,” states Tim McLernon, general manager of the Three Pound Group in Perth.

“Our Lion guys have kept in constant communication with us and have shown a genuine compassion and care for our business and staff which will not be forgotten.”

For single venue operators, the support has been even more crucial, as Annie Hateley, operator of the Drums Hotel in Coburg, Melbourne, can attest. “With the bar and bistro being closed for nine weeks, our food and beverage revenue is down by about 90 per cent. The support of Government and key suppliers such as CUB has been really important to our financial viability.

“It’s been tough for the entire pub industry and it’s still a long road ahead for many operators. So, CUB raising $2 million for our industry is a real lifeline for many venues.”

A truck leaves the XXXX brewery with free kegs for outback Queensland pubs

Taking stock

As pubs begin to re-open, breweries continue to support their pub partners by donating free kegs of beer across the country to kick off beverage sales. But it’s not just the big guys getting in on the act.

Melbourne-based brewery Stomping Ground is celebrating the reopening of Victorian pubs this month by shouting 5000 Melburnians their first beer at more than 50 pubs in the state’s capital. With the owners having experience in both the brewing and pubs business (they also own and operate the famed Local Taphouse in St Kilda), they understand how crucial the on-premise side of the business is to the beer industry.

“I think the shutdown has confirmed what we already knew - that the hospitality industry is a crucial part of the beer industry. Pubs, bars and restaurants are where punters are more likely to try a new product, find a beer they love, and tell their friends about it. Many breweries also have a hospitality component to their businesses which enables them to get valuable feedback directly from their consumers,” stated Stomping Ground coowner Justin Joiner.

The Camfield in Perth will re-open with fresh beer thanks to its partnership with Lion

Initiatives like the Stomping Ground 5K initiative, Lion trucking free kegs of XXXX to outback Queensland pubs, and CUB raising cash flow for its hotel partners, show that the hotel and beer industries are tightly linked, and that when one falters, the other is there to help it get back on its feet.

“I think operators and suppliers have to work with each other in whatever way they can to get through the COVID-19 crisis and come out the other side successfully,” states Joiner.

“We will all need each other if we are to restore our industries to anything like they were before, so the more we can work together the better.”