Businesses across the U.K. have been asking the public for support since the COVID-19 crisis began, but many have been doing their best to give back, too.
While fighting their own battles for survival, breweries have still found time to support other struggling industries and government-classified “key workers” who care for the ill or keep the country running. In turn, support for the beer industry has come from all kinds of unlikely quarters, including multinational drinks companies, investment firms, and a few of the much-maligned pubcos.
Even in these unprecedented times—and under the threat of closure—pubs, breweries, and the whole beer industry are proving vital to Britain’s culture and economy.
With cash flow almost entirely frozen within the industry, remarkable acts of solidarity have emerged that will keep some businesses afloat and pay the wages of those affected by closures.
After the government closed pubs for the foreseeable future on March 20, Fuller’s and Admiral Taverns canceled all rents for their tenants at a loss of around £1 million and £2 million a month, respectively. Combined with the government’s 80% wages, the stay on rents removes the two biggest overheads for pubs. Last week, Diageo-owned Guinness also pledged £1 million to help its free-trade customers cover the remainder of bartenders' wages.
For those who own their pub or haven’t had their rent canceled—Punch Taverns and Ei Group are still charging rent to all their tenants—non-equity crowdfunding website Crowdfunder is offering free campaigns to struggling businesses in the hospitality sector.
Any company affected by COVID-19 can use Crowdfunder’s platform to sell goods in advance in what the company is calling its “Pay It Forward” scheme. Hundreds of pubs are taking advantage, but breweries are only just coming on board.
Neptune Brewery from Maghull (near Liverpool) launched a campaign last week offering £15 beer vouchers that can be used in the future for a £10 donation today, or £45 vouchers for £25. The brewery has already raised over £1,000, more than doubling the £500 target set at the start. Co-founder Les O’Grady is still uncertain about his brewery’s future, but says every bit of cash helps.
“It’s a bit like a bank loan, but the interest is beer,” he says. “It’s taken a little bit of the pressure off us at a time when we’ve been thinking, ‘Oh my God, where’s that £100 or the next £200 going to come from?’”
Such a system could help shift volume for breweries whose cold stores are full of beer that could go out of date just as pubs open again. O’Grady has had to postpone the brewery’s fifth birthday party, originally slated for the Easter holiday, and hopes people will use that rescheduled date as an opportunity to spend beer vouchers and help the brewery run through short-dated stock as quickly as possible.
The U.K. this week stopped to applaud its NHS and care workers, with people momentarily stepping outside their home lockdowns to clap and cheer those still working and risking their health to save others.
Many in the beer industry have been vocal in their support of key workers, too. Alphabet Brewing Company, Fierce Beer, Brewgooder, 40FT Brewery, Siren Craft Brew, New Bristol Brewery, Affinity Brew Co., and many more are offering discounts to NHS staff, or collecting donations on their behalf.
Manchester’s Cloudwater Brew Co. is offering 25% off to anyone who orders online using an NHS email address, and any customers can buy a £1 token that goes towards free 12-packs for NHS staff. Once donations reach £50, a box is shipped at random to a hospital worker nominated via social media. They have already sent out five boxes, and expect numbers to double as awareness increases. Co-founder Paul Jones, whose wife is a doctor, is aware that helping those working at frontlines of health care will be vital as the crisis peaks.
“There are a lot of NHS workers who are going to be going through some harrowing shit, to be frank,” he says. “It felt like we had to do something, to offer them a chance to pause for a moment.”
The government has promised to pay 80% of wages for workers affected by the closure of all on-premise locations, but has said help for freelancers won’t arrive until June. That has left millions without income for at least eight weeks, with the hardest hit being those on contracts or ad hoc work in the hospitality and nightlife industries, who had their livelihoods wiped out overnight when the pubs closed.
This small set of workers includes musicians and theater technicians, many of whom have had concerts and performances canceled for the foreseeable future as part of COVID-19 protections. North London’s Signature Brew was initially founded specifically to help improve the quality of beer at live music events and has very close links to the industry.
Around 90% of its volume is in the on-trade, so the brewery has had to pivot quickly to a new delivery model, finding marketing opportunities to get the word out. With his two taprooms closed, co-founder Tom Bott is focusing on web sales, putting together a discounted case with snacks, glassware, and coasters to help replicate the pub experience. To show his support for the music industry, however, he is employing local out-of-work musicians and bands who have had their tours canceled.
Musicians, like members of London reggae band The Skints, were delivering online orders. Now they mostly work on packaging lines at the brewery for the sake of safety.
“We’re always trying to turn the ship back towards beer and music,” says Bott. “We had the beer and the set-up to help them. And what better experience for a Signature Brew fan than having their beer delivered by someone they’ve seen on stage?”
The brewery also has a pay-it-forward scheme of its own, already selling tickets for a concert called “Piss up in a Brewery” when this is all over.
Some breweries have decided to tackle the COVID-19 crisis head on. Never one to miss a marketing opportunity, BrewDog has been particularly active, and has been in line with its new, more responsible image.
Hand sanitizer has been one of the most important weapons in the war against COVID-19, and huge demand for it has led to people ripping dispensers off walls at hospitals and stealing from the beds of patients. In response, BrewDog has spent the last few weeks trialing a 60% ABV hand gel made at BrewDog Distilling Co., to relieve the pressure on supply.
A spokesperson at the brewery said people are “working around the clock” producing hand sanitizer. The brewery got some initial criticism for announcing it as “Punk Sanitizer,” but the actual bottles are plainly labeled, albeit with the BrewDog logo. Last week, the Aberdeen Royal Infirmary’s ICU was the first to receive a free shipment, and in total over 50,000 bottles have been shipped so far.
If the move makes it sound like the brewery is surviving the crisis well, co-founder James Watt is under no illusions that his $2.2 billion (£1.7 billion) empire is at risk. With over 70 bars worldwide, one hotel, and two breweries, it is uniquely vulnerable in the market with exposure throughout the supply chain. Before the government announced it would back wages for affected hospitality workers, Watt was warning of pay cuts and redundancies.
“We, like so many businesses, have lost 70% of our income almost overnight,” he said on Twitter last week. “Covid-19 and [the] government’s response to it is going to create the biggest unemployment crisis we have ever seen and propel millions of families into poverty. Every business now faces a grim battle to both survive and protect livelihoods.”
The government’s 80% wage scheme will go some way to reducing layoffs, and both Watt and co-founder Martin Dickie have agreed to take no salary this year to “protect as many jobs as possible.” Given the pair pocketed roughly £57 million and £49.5 million respectively selling 22% of BrewDog to TSG Partners in 2017, there is a strong argument they could avoid any redundancies themselves if they wanted to.
With incredible pressure on cash flow and margin, and a mountain of keg and cask stock slowly going out of date, there is only so much breweries can do to support others—but clearly that doesn’t mean they won’t try.
Words by Jonny Garrett