The Changing Structure of UK Brewing and Pub Retailing
Abstract
This article charts the major structural changes that have occurred in both UK brewing and pub retailing during the period 1989–2000. 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.
Keywords
Citation
Knowles, T. and Egan, D. (2001), "The Changing Structure of UK Brewing and Pub Retailing", International Journal of Wine Marketing, Vol. 13 No. 2, pp. 59-72. https://doi.org/10.1108/eb008720
Publisher
:MCB UP Ltd
Copyright © 2001, MCB UP Limited