52 BREWING & BEVERAGE INDUSTRIES BUSINESS When I first got involved with local breweries whilst setting up CBR in 2007, it always struck me as rather odd that I often stumbled across other breweries casks in far off yards and I wondered how and why they had got so far away from home. “Ah, that would be a beer swap” often came the explanation so I became familiar with the term but without understanding too much behind the rationale for having a third party beer to sell, in exchange for some of one’s own. Older, and hopefully a little wiser now, I realise there is a very solid business case. In fact, it’s such a good case I’m rather surprised every local brewer doesn’t regularly swap beer! So let me back up that statement with these observations. • Beer swaps are done at discount prices. In fact, actual money should not change hands, just beer. Therefore the final sale of the swapped brand should generate a profit opportunity for the recipient brewery of at least the same magnitude as the home produced beer. • Every local brewery sells some, if not all, of its beer to local pubs and bars. Often those same outlets will be selling other brands purchased from a wholesaler. A beer swap allows that same brewer to offer other brands to its customers and probably at cheaper prices than a wholesaler. The outcome? Greater sales volume, more profit, and less intrusion by the wholesaler – perfect! • It is well known that beer drinkers enjoy variety. Being able to supply alternative beers direct to pubs and bars can often generate additional orders from existing customers and at a higher price. Once again more sales and more profit! • The goal for many breweries is to increase overall sales by conquering new markets. Swapping beer with another brewery does just that. A beer brand will be drunk by new customers and that gives the opportunity for repeat orders and much wider brand awareness – what’s not to like?! So, it’s all up side is it? Well, there are a few difficulties. Firstly, a brewery has to find a like-minded brewery to trade with in the right location, and with the right products. That’s not always easy and can take a lot of time and research. Often a brewery that wants your brand does not brew a beer that your customer are likely to buy. Then, if casks are sent to a far off brewery the sender is very reliant on the recipient taking care of, and returning them. At best this can take many months (typically 6 to 12), at worst, it doesn’t happen at all! Finally, it just is not always easy to keep on top of the administration and research required for a long term “swapping” strategy. So, what’s out there to help? BeerSwaps.co.uk was launched just a year ago by ECasks founders Andy and Kay Thompson. BeerSwaps.co.uk provides a free on-line market place for beer swapping. It makes placing and choosing beers and trading partners easy by just browsing on the site. There is even a tool for users to quickly produce A4 “flyers” for marketing purposes – I tried it and it took less than a minute. Most innovative and unique is the ability to sell beer to one brewery and buy beer from another – all on line and with just a few clicks of the mouse. This is partly enabled by a special deal done with ECasks; these can now (and exclusively) be used for beer swaps arranged through the site, and at a discounted rate. So beer swapping does not need to take up any of a brewery’s cask population. It can truly be an additional revenue stream. The message is clear; there are financially sound reasons why local breweries should encompass beer swaps as part of a growth strategy, and to maintain a healthy local market. Using BeerSwaps.co.uk makes it easy and efficient. Beer swaps – why bother? asks Peter Godwin, business consultant and founder of Close Brewery Rentals Ltd After a successful career in Corporate Banking, Peter Godwin launched and managed Close Brewery Rentals between 2007 and 2015. Now working with Andy Thompson, Peter is helping to develop Beer Swaps Ltd. Showcase CASKS & KEGS 52_Layout 1 16/05/2017 15:02 Page 1