Showing posts with label Hammonds. Show all posts
Showing posts with label Hammonds. Show all posts

Monday, 19 November 2018

Beer zoning ends

Beer zoning - supplying tied houses from a closer rival brewery - ended after a little less than threee years in March 1946.

I'm sure that brewers were happy to be able to supply their own houses again. And drinkers must have been pleased to have a better choice of beer locally.

"BEER ZONING ENDS MARCH 2
Back to Favourite Brews

"Evening Post" Reporter
There is good news to-day for beer-drinkers — beer zoning will end on March 2.

From that date breweries and public-houses everywhere will resume rormal relations. Breweries will send supplies their own "tied" houses, and will supply "free" houses which were accustomed to take their beer.

Beer zoning came into operation August, 1943, and immediately attained Its object — that of economising road and rail transport. Brewery companies arranged among themselves districts which each could supply with the minimum use transport. One company's licensed houses in a town some distance from their brewery would be taken over en bloc by another firm better placed geographically.

For instance, zoning dealt effectively if somewhat arbitrarily, with Tadcaster beers, which were sent to Bradford, and Bradford beers, which were supplied to Leeds. That situation was dealt with by diverting the Tadcaster beers to the houses of the Bradford firm in Leeds, and the Bradford firm took over the Bradford houses which had been supplied with Tadcaster beer."
Yorkshire Evening Post - Wednesday 23 January 1946, page 5.

It seems that beer zoning wasn't always that logical.The brewery chosen as a replacement supplier wasn't necessarily the closest.

For those who don't know the geography of Yorkshire well, Tadcaster is about 25 km Northeast of Leeds, while Bradford is 10 km due West of Leeds.

Tadcaster is a small town that was home then to three substantial breweries: John Smiths, Sam Smiths and the Tower Brewery. Surprisingly, all are still in operation. Leeds, obviously had Tetley, but also Melbourne. And in Bradford there was Hammonds and Heys. All had substantial tied states.

Friday, 15 July 2016

Hammonds – a well-equipped organisation

Back to Hammonds again. And another annual report.

In the immediate post-war years Hammonds was expanding rapidly, buying seven breweries between 1946 and 1950. After which there was a break until 1956, presumably while they consolidated those acquisitions. Which is what they seem to have been doing in 1954.

“HAMMONDS UNITED BREWERIES
A well-equipped organisation
CHANGING TREND OF TRADING

The 64th Annual Ordinary General Meeting of Hammonds United Breweries. Ltd., was held yesterday in Bradford, Mr. H. L. Bradfer-Lawrence (Chairman and Joint Managing Director) presiding.
The following the statement the chairman circulated with the Report and Accounts:—

Our trade during the past year has followed the now familiar trend of recent years; the output bottled beers continuing to increase and draught beers to decrease slightly. Although this "change over" tendency appears to be gathering momentum, however slowly. It Is impossible to forecast for how long or to what extent it will continue. Trade from October 1, 1953, up to the time writing these observations, has been increasingly good throughout the area of the group’s operation, and it is to be hoped this increase will continue. Licensed premises now number 873.”
Yorkshire Post and Leeds Intelligencer - Tuesday 26 January 1954, page 7.

A move from draught to bottled beer was a typical 1950’s experience. Between 1950 and 1960 bottled beer increased its share of sales from 33% to 36%.

Most breweries didn’t just provide beer to their pubs, but also wines and spirits and soft drinks. It could be a nice little earner, especially if a brewery produced its own soft drinks, which many did. Holes in Newark had a plant for making soft drinks around the back of the brewery. Hudoris was the brand they sold them under. That ended after Courage took over.

“Our sales of wines and spirits also increased, and it may be of interest to shareholders to note that the turnover in these lines, together with mineral waters, largely manufactured by two of our subsidiaries, with other small ancillary items, now approaches £1,500,000 annually. The group balance from trading account at £613,961 was some £26,000 higher than the year before. In spite of increased manufacturing costs. However, after allowing for increased taxation, your company's net profit comes out at about the same figure as last year. Some shareholders may be disappointed that your directors propose to pay the same dividend (20 per cent.) as has been paid for the last six years, and that no increase the total distribution is proposed, particularly since a number of other brewery companies, recording results similar to our own, have recently increased their dividends. Your directors, however, feel that the need to conserve resources at this time is paramount.”
Yorkshire Post and Leeds Intelligencer - Tuesday 26 January 1954, page 7.

Hammonds was a healthily profitable company. I assume that they wanted to conserve resources to have cash for improving their pubs and finance further acquisitions.

“Balance-sheet features
Little comment is necessary on the balance-sheets of the parent company and the group. There have been some accretions to the fixed assets and the excess of net current assets is improved: while the increase in cash largely reflects some slight reduction in the values of the stocks effected during the year. Reference was made last year to the strength of the reserves and it is perhaps worth noting that the capital reserves and revenue reserves of the parent company are now nearly 2.5 millions, against a nominal Ordinary capital of £774,900.”
Yorkshire Post and Leeds Intelligencer - Tuesday 26 January 1954, page 7.

It sounds as if their share capital was far too low. Shouldn’t it have reflected more closely the company’s assets?

With little building work allowed during and after the war, most breweries had a huge backlog of maintenance. And many pubs had been damaged by German bombing.

“As was forecast last year, our expenditure on maintenance and improvements to our licensed premises following, the easing of building licences, was higher in the year under review. It is pleasing to be able to report the opening on December 18 last of the "Cocked Hat,” Scunthorpe, the first "part-permanent” public house to be erected by the group since pre-war days. The term "part-permanent" means a building which will be extended to the full planned size as building licences permit: a vastly preferable method to the erection of temporary premises which have been authorised in some other areas where the planning permission is for a limited period of years only, and the owners will ultimately be faced with the double cost of tearing down the temporary building and rebuilding a second time. I would remind shareholders that we did open an entirely new public house soon after the war, one of the first in the country — the ”Maypole" on the Brackenhall Estate, Huddersfield — but in that case the bare carcase of the building had been practically finished in 1939 and subsequently repositioned. We are hopeful that building licences will soon be granted for similar work on other sites.”
Yorkshire Post and Leeds Intelligencer - Tuesday 26 January 1954, page 7.

New pubs were need  to replace ones destroyed during the war and to service new housing estates. It was the last great period of pub building. Though many of the new estate pubs have since closed. The Maypole seems to have turned into a particularly rough pub and was eventually bought and closed by the council.

I love the term “part-permanent”.

“Plant reconstruction
We can report at last some concrete progress towards major plant reconstruction. The new chilling and conditioning plant for bottled beer at Tadcaster Brewery is nearing completion and will be operating next month. The recent announcement of a material increase in the licence-free limit for industrial building works will enable us to follow up this installation by making a start on the building and equipping of a new bottling store at Tadcaster complementary to it; with consequent savings in overheads and transport costs. Further improvements to manufacturing plant and premises were effected during the year, and others are contemplated during the coming year.”
Yorkshire Post and Leeds Intelligencer - Tuesday 26 January 1954, page 7. 

The Tadcaster brewery was very important for Hammonds and was to become its main brewery in Yorkshire. Which explains why they were investing so heavily in it. And it’s the only one of the breweries Hammonds owned at the time that’s still open.

Monday, 25 April 2016

Mr. Offiler’s special friends

We’re back at Offilers. Looking at F H Offiler's unusual relationship with some of his tenants.

Running Offilers, it seems,  did have some perks:

“I soon realised, by direct observation and received hints and nudges, that the development of the chain of small hotels coincided with F H Offiler's acquisition of lady friends, past and present, who were installed to run them; it occurred to me that it was a neat way of combining business with pleasure. I must say such a situation was not uncommon in the brewery trade, but I had never before found it so extensive and open. It was common knowledge in the trade and was accepted as a means of promotion within the brewery. With some degree of regret, it might be said, we had to bring this novel way of running a brewery estate to a speedy end. On the positive side, the acquisition by H C Ofiller of large houses standing in their own grounds, and their conversion into licensed premises, around the fringes of Derby, was fortuitously good forward planning, as relentless urban expansion made them prosper.”
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, page 80.

Who would have thought it? Brewery owners buying hotels for their mistresses. Though it sounds like it worked out well for the brewery as well as Mr. Offiler.

If this sort of thing wasn’t uncommon, it makes me wonder when it died out. Or if it still continues today amongst smaller breweries that retain a tied estate.

I think I’ve found an example of a hotel built for one of Mr. Offiler’s special friends.

“LICENCE TRANSFER GRANTED
New Inn To Be Built at Wirksworth
An application for the removal of the licence of the William IV Inn, The Dale, Wirksworth, to premises to be erected off Derby Road, near the Recreation Ground, was heard by Wirksworth Justices at the Annual Licensing Sessions on Tuesday. The application was made by the licensee, Mrs. Mabel Mary Brewell.

Mr. F. W. Barnett, who appeared for Mrs Brewell and the owners. Messrs Offilers Brewery Co., said that the new premises would be known as King's Field Hotel, and would be erected at the corner of Derby Road and Millers Lane. The house in The Dale was an old-established one, and Mrs. Brewell had been there for twelve years. The local Council intended to use Derby Road as a residential area, and in due course most of The Dale, where there had been serious complaints regarding nuisances from various quarries, would be moved to the Derby Road area. Considerable development had already taken place in the neighbourhood, and around the cricket ground the Town Planning Authority had scheduled a further area for residential purposes to accommodate up to 300 houses in the next ten years.

William John Farmer, architect, gave details of the plans, and stated that specially built large picture windows were incorporated in the public rooms to allow customers to see the very pleasant views. The nearest licensed premises were the Wheatsheaf Hotel, which was over 800 yards away, and there were 630 houses within half-a-mile radius.

In reply to the Chairman (Mr. K D. Wheatcroft), Mr. Farmer said that if the plans went through automatically, the building would be completed within twelve months. Mr. Walter Haynes opposed the application on behalf of the Wirksworth and District Free Church Federal Council. He handed in a signed statement from the Council to the effect that the Free Churches wished to register a vigorous protest against the proposed transfer of the licence of a redundant public house to a site adjoining the new housing estate. There were nine public houses — apart from the William IV — within 200 or 300 yards of the Town Hall, and the Wheatsheaf Inn was within several hundred yards of the new housing site, so that there were ample facilities to meet all requirements. Such a transfer would tend to impair rather than enhance the dignity of the Derby Road housing estate.

There was no other opposition, and the Bench granted the transfer, the Chairman intimating that they hoped the new house would be built as quickly as possible.”
Belper News - Friday 11 February 1955, page 16.

Trading in an existing licence was often the only way a brewery could get a new licence. Sometimes they had to surrender more than one. It made sense for a brewery, especially if they had a large concentration of small pubs in one location. This case  was slightly different. They were moving the licence from another part of the same town. Presumably because there were a lot of pubs nearby and the population was about to be moved.

Typical that some religious nutters objected. They’re always at the front of the queue when it comes to stopping people having fun.

I’ll leave you with some of Offilers’ beers:

Offilers beers 1950 - 1961
Year Beer Style Price size package OG FG ABV App. Atten-uation colour
1950 Mild Ale Mild 1/1d pint draught 1031.2 1004.7 3.45 84.94% 40 + 8
1953 Nourishing Stout Stout 1/3d half bottled 1037.7 1017.3 2.63 54.11% 1 + 14
1955 Nut Brown Brown Ale 9.5d half bottled 1034.6 1010.1 3.17 70.81% 75
1959 Nourishing Stout Stout 14d half bottled 1035.9 1015 2.69 58.22% 275
1961 Derby Strong Strong Ale 17d half bottled 1045.4 1013.6 3.98 70.04% 75
Source:
Whitbread Gravity book held at the London Metropolitan Archives, document number LMA/4453/D/02/002.

Monday, 18 April 2016

Offilers of Derby

You know what time it is? Time for more from Anthony Avis.

His book really is a diamond mine of gems about brewery owners. They seem to have been a very odd bunch. I wonder if that was something peculiar to the brewing trade or if other long-established industries were similar? Hard to tell, as I don’t know of a similar book about other trades.

The topic is another takeover by CUB, this time Offilers of Derby. Another old brewery inherited by feckless heirs:

“OFFILERS BREWERS AMBROSE STREET, DERBY
The brewery had been established as Vine Brewery in 1876 by George Offiler and the company, set up in 1892, was still controlled by members of the Offiler family when I first knew it in the early 1960s. The board consisted of two Offilers and a couple of others. It was run by two cousins, H C Offiler, who was chairman and managing director; and F H Offiler, who looked after production and the tied estate, with a particular interest in setting up small hotels with residential and catering facilities in and around Derby. It was one of the sleepiest brewery companies I had so far experienced, even in an era of comatose management. The two of them did not seem to bother what happened, so long as they could draw a reasonable income and pursue their own private interests.”
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, pages 79 - 80.

You’ll learn later what prompted F H Offiler’s interest in hotels and what his private interests were. Treating a brewery as a handy source of income while not really guiding or developing the business is a common theme.

They didn’t even seem very interested in brewing beer:

“They were sufficiently indifferent to their prosperity as to contemplate giving up brewing and buying their beer in from a neighbour. Both Bass and Ind Coope & Allsopp had protective shareholdings, and were content to leave it alone. Offilers had about 250 public houses in and around Derby and spread out to the south; their beer was pleasant. They did not like Ind Coope, which had had the temerity to buy Pountain's brewery in Derby ten years earlier, when H C Offiler had thought it was his fish to catch. So he made an approach to Bass, which thought the purchase tag was too high; and as they say, one thing led to another beyond their initial intentions; and soon they were talking to Derek Palmar, when he was a director of Philip Hill, Higginson, Erlanger, City merchant bankers. They found they were receiving advice to sell out to CUB; by coincidence, he, er, happened to be its financial adviser too. Within a very short space of time an offer had been made, and Offilers were swept into CUB. Within two years they had been closed down - which was not quite what the Offilers had in mind; but this was 1965.”
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, page 80.

250 pubs was a decent tied estate. There used to be dozens of breweries that size in England, but many disappeared during the takeover fever of the 1950’s and 1960’s. What happened shows the danger of arousing the interest of a big brewery. Though that Derek Palmar was working for both Offiler’s and CUB does rather seem a conflict of interest. I’m sure he did very nicely out of it.
As you can see below, Offilers was a profitable business:

“OFFILERS' REPORT
Brewery profit of £82,474
A NET  profit of £82,474 for the year ended September 30 will be reported by the directors of Offiler's Brewery Ltd. Derby, at the 61st annual meeting of the company to be held the Midland Hotel, Derby, on January 8.

To the net profit there has to be added the unappropriated balance brought forward from 1949 amounting to £137,290, making a total of £219,764.

DIVIDENDS
Out of this the directors have declared dividends on the "A", ' B" and "C" Preference stocks amounting, after deduction of income tax, to £4,620, and an interim dividend of ten per cent. actual, amounting, after deduction of income tax, to £13,200, on Ordinary stock.

From the available balance of £201,944 the directors recommend the transfer of £35,000 to general reserve, and the payment of a final dividend of 15 per cent, actual, free income tax, on the Ordinary stock, amounting to £19,800, the unappropriated balance to be carried forward is £147,144.

Mr. F. R. Offiler, one of the directors, retires by rotation and offers himself for re-election.”
Derby Daily Telegraph - Saturday 16 December 1950, page 6.

The brewery seems to have been drifting rudderless:

“As usual, I had been sent over to their brewery to organise their integration into CYB and found the set up there fascinating. It was feudal, dormant, and without energy, sense of purpose, or direction. It was difficult to get figures or lists, or worthwhile information; not because there was obstruction, but the data, in modern jargon, was not assembled. I did the necessary tour of the properties in order to write a terrier, and it was interesting to gather up the information.”
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, page 80.

Not the most go-ahead sort of place, then.

Sunday, 28 February 2016

Cornbrook Brewery and tank beer (part four)

Wow. Have I really managed to spin out Hammonds tank beer fiasco to four posts?

You’ll be happy to learn that it all ends here. Doubtless I’ll find something else to pester you with interminably.

Here’s a pretty obvious flaw in installing tanks in every pub:

“In many pubs, doing only about four barrels of beer trade weekly, there would be two five barrel containers, and this would result in over age beer being stocked. It began to be realised that only large trade pubs could take the system. All these problems tumbled one over another at the same time; for a time it was a nightmare situation. The flags and bunting outside the pubs were removed, and the rival brewers put away their share certificates, knowing full well that a revolution was not in the making, and revelled in the discomfiture of UB. Then the licensees and free trade customers realised there was no accurate way of measuring large quantities of a liquid which foamed, so they alleged they were being short delivered. Compensation had to be paid out, on a generous scale because of ignorance of true loss, and that was the beginning of a trade custom which continued for as many years as the system, namely, that a customer received an allowance of four gallons for every thirty six gallons delivered, even after accurate systems were devised.”
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, page 78.

One important thing that paragraph tells me: United Breweries pubs in Bradford only usually sold two draught beers, presumably Bitter and Mild.

Four barrels isn’t a huge amount of beer: 1,152 pints. At an average retail price of 1s 6d, that’s £144 the pub would have taken from draught beer in a week. Which is quite modest. Many publicans can’t have been making a huge amount of money. It’s pretty obvious that if you delivered 2.5 weeks’ worth of beer there was a good chance of some going bad before sale. Especially if you didn’t think the tanks needed cleaning before each delivery.

I can think of another problem with having two 5-barrel tanks. If Bitter and Mild were selling in roughly equal quantities, fair enough. But what if one were selling significantly more than the other? Say double the amount. You’d be committed to taking 5 barrels of each, but it would take you twice as long to get through the slow mover. With barrels that wouldn’t be a problem. You’d just buy fewer or smaller barrels of the slow seller. Tanks seem a very inflexible system.

Those four extra gallons per barrel must have cost the brewery a stack. That’s 11% extra beer. And, whereas there’s always some waste with cask beer, presumably the landlord could sell every drop that was in the tank. I’m sure publicans loved having tanks. Lots of free beer to make a profit on.

Another thought: what happened if, say, your tank of Bitter was emptied half way through a session? Unless you had a spare tank to switch over to, you’d be buggered.

It didn’t do United Brewery’s trade in the Bradford area much good:

“Of course, tied and free trade fell in the Bradford area alarmingly as customers lost confidence. Several years passed before all the difficulties were sorted out, and by that time technology had developed other beer storage and delivery systems, notably with traditional draught beer and keg beer. The tank beer system was perfected just in time for it all to be withdrawn from service. Today one may still see the odd rusting tank beer container around and wonder what was its purpose.”
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, page 78.

That’s ironic. By the time they’d sorted the system out, it was redundant. Quite a few brewery’s tried out tank beer in the 1960’s and 1970’s. I can remember seeing the tankers driving around. Though I’m struggling to recall any pub I drank in that sold tank beer. Obviously, being a cask fan, tank beer pubs weren’t likely to be amongst my regular haunts.

The fiasco seems to have had a long-term impact on both United Breweries and their successor, Bass Charrington:

“The only beneficiaries of all this uproar were the manufacturers of the equipment and their shareholders; and the relieved rival brewery companies who furled their white flags of surrender in derision. UB, CUB and BC spent thousands of pounds putting the system right, and to their credit, they did it thoroughly and handsomely. Somewhere, mouldering in the document storage cellars of the company, will be the fading minutes of the Tank Beer Committee set up by Hammonds, as on a Plague or War footing, meeting daily to receive reports from the front line and issuing directions to the troops in battle. Gradually, as one reads the minutes, the light of remedy, falteringly at first and then stronger, bathes the stricken field of conflict with the beam of understanding and healing, sweeping through the necromancy of wild surmise and onto the reason of scientific application. A cautious corporate wisdom, unnoticed at the time, grew out of the affair, and it marked the decline of individual, untutored enthusiasm. There remained however, one more contra-orthodox scheme to run its course - the three dozen beer bottle case.”
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, page 78.

I wonder how much the whole exercise cost United Breweries? When you add up the initial cost of the equipment – not just the tanks in the pubs, but also the delivery tankers – the cost of lost trade and all the expense of fixing the system, it must have come to a pretty penny. Though I doubt anyone ever added it all up. It would have been too depressing.

It makes you realise the attraction of keg beer. You could deliver it on a normal dray, no special equipment was required in the cellar, other than CO2, and it could be delivered in flexible or small amounts. I understand now why that’s the way big breweries eventually went.

Friday, 12 February 2016

Cornbrook Brewery and tank beer

Cornbrook  was a Manchester brewery bought by United Breweries, the successor to Hammonds, in 1961. It was a mid-sized brewery like many others. But one thing made it special: replacing cask with tank beer.

DCM was David Constable Maxwell, managing director of Cornbrook,

“Under DCM's tutelage, Cornbrook had pioneered their system of handling draught beer through delivery by motor tanker wagon into bulk containers in the outlets and dispensing it by measuring pumps on the counters. It was popularly called tank beer, and had its origins in a system used by Hull Brewery company in that city from the 1920s. It had been updated in the light of modern scientific application and was manufactured by a Lancashire company Porter Lancastrian, with which DCM was connected, although, unusually for him, he did not reveal this until actually asked. As stated, bitter beer was taken from the brewery by tanker and filled into metal tanks in the cellars of public houses and kept under carbon dioxide pressure, and thence through a measuring pump into the customers' glasses. The principle was good, in that all responsibility for quality was removed from the licensee, as was the necessity to ensure the scrupulous cleanliness of all utensils in the retail outlet exposed to the atmosphere.”
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, page 75.

The Hull Brewery used large ceramic jars to store beer in pub cellars. There was a bit of a controversy back in the 1970’s whether their beer counted as cask or not. It was rough filtered and the ceramic vessels it was served from weren’t pressurised, unlike Cornbrook’s metal tanks. I seem to remember CAMRA accepting it nationally, but the Hull branch not putting any pubs in the Good Beer Guide that sold it.

Just checked the 1978 and 1980 Good Beer Guides. Hull counted as cask in 1978, but not in 1980, when the GBG notes that all their beer was filtered. Obviously CAMRA had a change of heart.

Obviously, for the free trade Hull didn’t use tanks. The Town Hall Tavern in Leeds used to sell their Bitter, presumably from a cask, but filtered. I don’t recall it standing out in either a good or a bad way.

The move to tank beer was prompted by a recurring theme in the 20th century: publicans messing up the beer in the pub cellar. Keg and tank beer were seen as a way of taking a landlord’s incompetence out of the equation. Foolproof beer was the aim. Of course, it never quite worked out like that. 

The enthusiasm of some management for tank beer saw United Breweries rather rashly rush into adopting it more widely in the group.

“DCM sang the praises of the system extravagantly, as did his general manager, Joe Barlow, when Cornbrook came into the UB group. Lightning and carefully controlled tours of the brewery and as carefully controlled inspections of selected pubs, were arranged to make its virtues known more widely to other executive managers in UB. Since the system was new, it had not been tested on a large scale - of time, dimension or its tolerance of draught beers brewed differently to that of Cornbrook. Apart from the assertions of the system's success by the Cornbrook directorate, independent actual and factual statistical evidence was hard to come by; it was therefore difficult for an objective assessment of its merits to be made. However, WTD [William Tudor Davies] who had advanced his career from being the outside management consultant from Urwick Orr & Partners to being the managing director of Hammonds, and then the sales director of UB, was convinced the system should be adopted, despite doubts within the company that it still had to be proved. The compromise was to have a field trial of the system on a grand scale, in that all the group's outlets in the Bradford area were converted to the "tank beer" system.

WTD was convinced it was a significant breakthrough in brewing technology and product service to the customer.”
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, page 76.

No-one really understood the technology that well. But went ahead anyway. You can probably guess what happened. But I’m saving that for next time. I will leave you with a couple of Cornbrook beers:

Cornbrook Brewery beers 1927 - 1961
Year Beer Style Price size package OG FG ABV App. Atten-uation colour
1927 Flagon Ale Mild pint bottled 1028.2
1927 Barley Stout Stout pint bottled 1049.3
1959 Barley Stout Stout 12.5d half bottled 1046.3 1013.8 4.21 70.19% 250
1961 Keg Mild Mild 16d to 17d pint draught 1035 1002.3 4.09 93.43% 20
Sources:
Whitbread Gravity book held at the London Metropolitan Archives, document number LMA/4453/D/02/001.
Whitbread Gravity book held at the London Metropolitan Archives, document number LMA/4453/D/02/002.


Note that the Keg Mild is pale in colour.

Sunday, 29 November 2015

Hammonds international collaboration

Bottling was of vital importance to brewers in the 1950’s. Bottled beer was the only place there was any growth and breweries were keen to cash in.

But a lack of investment in the 1940’s had left many with far from optimal bottling arrangements. Once restrictions on building works were lifted, ambitious breweries like Hammonds were keen to put that right. Where would you go for the latest bottling expertise? Surprisingly, Denmark was a good choice.

There was a big shift to bottled beer in Denmark in the early 20th century. Something similar happened in many countries, but in few as dramatically as in Denmark. Draught beer became very scarce, even in pubs. That situation still prevailed when I first visited Copenhagen in the late 1980’s. The resurgence of draught beer in Denmark has gone hand in hand with a renewed interest in beer in general.

This gives an idea of the importance of bottled beer in Denmark:

Beer Sales (Carlsberg Brewery) in Barrels.
Bottled. Cask. Total. % bottled
1914-15 250,300 19,200 269,600 92.84%
1916-16 270,100 19,200 280,300 96.36%
1916-17 281,300 40,000* 321,300 87.55%
1917-18 182,000 18,900 195,900 92.90%
1918-19 254,800 17,600 272,400 93.54%
1919-20 406,400 21,400 447,800 90.75%
* Including 25,000 hectl. Pilsener at 18 Balling exported to Germany.
Source:
Journal of the Institute of Brewing 1921, page 28.


So no surprise that Hammonds looked to Carlsberg and Tuborg to help them out with their bottling plant:

"The way was now clear to consider serious and extensive changes to the brewing and bottling resources of the Hammonds' group of companies. Bottling was the first priority, being carried out in several locations in old buildings and with outdated equipment. The directors had a connection with the Danish brewery companies of Carlsberg and Tuborg, and through them engaged a Danish consultant engineer. Visits were made to Copenhagen and Elsinore to see modern bottling plants, and the consultant began work on designs. Unfortunately, he did not come up to expectation and an approach was made to Hammonds' friends at Ind Coope & Allsopp for assistance."
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, page 35.

Elsinore is normally called Helsingborg Helsingør nowadays. Shame it didn’t work out with the Danes.

Tuesday, 17 November 2015

Yet another Hammonds takeover

Back with Anthony Avis and another example of the strange atmosphere in many old brewing companies.

Case was one of the later companies Hammonds acquired, in 1959. It was located in Cumbria in the extreme Northwest of England.

“Case & Co began as a wine and spirit business in the main street of Ulverston in the middle of the nineteenth century, and expanded with the growth of Vickers shipyard in Barrow, building a brewery and acquiring a tied house estate in that town. The brewery in Barrow was begun by Geoffrey Case's father, and was his private domain; Geoffrey was allowed no part in its control until he had turned forty and by the time he took charge, it was a brewery business entirely, based in Barrow. He became the brewer, and the brewery became his main interest in life, apart from his horses and point to point meetings; and his golf. He was a good brewer, and his beer was very popular. His equipment was ancient, parts of it literally held together, if not with pieces of string, then assuredly with lengths of rope; but he knew how it was done and managed it all with adroitness. He had a good foreman brewer inherited from his father, who carried him through the learning phase.”
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, page 65.

Usually brewery owners were keen on getting their son involved in the business with a view to the continuity of the business. Though autocratic owners weren’t rare, either. The son, as in so many cases, seems to have got a taste for country living, judging by his interests. Held together with rope? Very classy.

This next bit made me smile:

“His brewing routine produced very low rates of wastage, a matter of intense professional interest to the other brewers in the Hammonds group, after Case was taken in. This was until it was realised that the brewery fermenting vessels had such thin walls that they bulged when full. The Excise officers only calibrated the first three feet or so when assessing duty; the result was that Geoffrey gained quite a number of gallons of duty free beer.”
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, page 65.

It’s an indication of the poor state of repair of many breweries. Many don’t seem to have had much in the way of investment since before WW I. The pressing need to replace knackered equipment prompted many to sell up. The most recent example I can think of is Gales. They needed to completely replace their brewhouse and either didn’t have the money or the inclination.

It seemed there were some real boozers in the brewery:

“Bookwork was not his favourite occupation, so he left the accountancy side of the business entirely to the company secretary, a man from the Principality named Tudwal C Roberts, a long serving employee locked into the drinking habits which then were common in small breweries. He had sacrificed his liver for the company and its owners, and if one could have warmed one's hands in York by the glow from James Melrose's nose, then a fire could have been ignited in Barrow from the heat of Tudwal's rubicund face.”
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, page 65.

This sounds like me at a works do:

“The final negotiations were conducted in the Midland Hotel in Manchester over a luncheon, at which I was present with PLBL, the joint managing director of Hammonds. We met Geoffrey Case and T C Roberts, and soon settled outstanding points of detail and then went downstairs for luncheon. I noted the wretched Tudwal drank everything within reach, and with a neurotic and self absorbed compulsion; it was not drinking for pleasure and companionship, it was consumption because alcohol was available; it put me on notice.”
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, page 66.

Not even I would do this:

“Some weeks later I made my first official visit to Barrow and to Case's office there. I saw T C Roberts in his room and was astonished by his behaviour. As we sat talking, he got up from his chair and sidled round to a filing cabinet, pulled open a drawer; and taking an opened bottle of red wine from it, with a glass, he filled it and drank, with his back to me. Some inner force made him do this; perhaps he did not care what I might be thinking; perhaps he was ashamed at his involuntary behaviour - I do not know. When he had finished splashing the wine down his throat and shirt front, he turned round and returned to his seat with no comment at all. It happened several times during the meeting; to me it seemed so unreal.”
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, page 66.

Surely he should have been drinking beer in a brewery?

Many brewery owners seemed extremely naïve about the result of selling up:

“Geoffrey Case never got over the fact that he had sold the brewery and therefore control; like many before him, he held to the belief that somehow he had got his money out of the company, but that everything would stay the same. Initially, John Lees-Jones, a fellow director on the Hammonds board, and I went every week to Barrow, and gradually we altered the way the company was run. Geoffrey reverted to being the brewer only; Dudley Renwick was brought in by us as general manager; he was a member of the Deuchar brewing dynasty of Newcastle upon Tyne, and a man with an air of authority.”
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, page 66.

It ended in tears for Geoffrey Case:

“The sole responsibility for the brewery had oppressed him and because of the sale he now had help and understanding from his new colleagues; and for him the outlook improved distinctly. He was a pleasant, hesitant, shy countryman. The idyll of his existence lasted a few years only; UB was formed, Hammonds went, and out of it came United Lancastrian Breweries, and a regime not to his liking. The outcome was inevitable.”
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, page 65

Seem to have been a very eccentric bunch running breweries.

Monday, 2 November 2015

Another Hammonds takeover

You’ve probably noticed my fascination with 1950’s takeovers. Especially those of Hammonds, as I’ve lots of inside information on them.

Seth Senior and Sons was a modestly-sized brewery in a village just south of Huddersfield. It fell into the hands of Hammonds in 1946, their first post-war takeover. In line with their early acquisitions, it wasn’t that far from the original Hammonds brewery in Bradford.

This is how the family came to sell up:

“Seth Senior died and the business passed into the control of his sons and grandsons, who had made the inevitable metamorphosis into country gentlemen, and as inevitably they fell out among themselves. The company coasted along comfortably enough between the wars and survived the Second World War, by which time the two Senior brothers, grandsons of Seth, were in charge, and were not speaking to one another. One was the brewer and the other the bottler, a job as skilful as brewing in the then existing state of technology. The beer passing by pipe under the road to the bottling stores was the sole communication between them. Jack Morrison was the under brewer and the go-between; his father had been head brewer at Campbell Hope and King, a small brewery in Sunderland, later taken over by Vaux, and well known for the quality of its beer, and he had trained under him. It was a situation which could not last, and under the persuasion of a Senior son in law, Harold Wood, who owned the Sovereign Quarries at Shepley and was the neutral Chairman of the Senior company (he lived in a house at Lane Head called One Acre and was locally known as One Acre Wood), negotiations were opened with HLBL for a sale. “
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, pages 50 - 51.

The same old story: descendants inheriting a brewery they weren’t really interested in or committed to. This time with an added frisson of siblings falling out. I love the fact that the two brothers and their empires were separated by a road.

Surely Campbell Hope and King was in Edinburgh, not Sunderland?

The reaction of the workforce to the takeover was unexpected:

“The family took the cash, and Hammonds took the brewery with its one hundred pubs. The workforce, which was Shepley, was devastated; it was seen as a surrender to the their biggest rivals, Bentley & Shaw of Lockwood, already in the Hammonds camp - the wound to village pride was deep. They took the only action they could to express their feelings - they went on strike, unheard of in the brewing industry then - not for money, not for better conditions, not even against unfairness. It was a community expression of despair, frustration and the realisation of the hopelessness of their position.”
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, page 51.

Industrial seems to have been extremely rare in the brewing industry before the 1960’s. Paternalistic management probably helped. The same wasn’t true of the new, modern breweries built from 1960 onwards. Many of those had terrible industrial relations. The Bass plant in Runcorn and the Whitbread one in Luton are good examples.

How did they end the strike? In a very modern way. The management lied through their teeth:

“I was spending a few days in Yorkshire, staying with HLBL at his Ripon house, when this happened, and he took me with him in his car when he went over to Shepley to speak to the employees, assembled to hear him, in the cask racking shed on a cold December day. He spoke to them like a kindly uncle dealing with fractious nephews. He told them they were now part of a larger family, and that family had greater opportunity to grow in the post-war world than Senior's by itself; there was room for all in the new mansion; there would be no changes, except changes for the better. It was good evangelical stuff, high on vision, hope and vagueness, credible to the credulous. They believed him because they wanted to, and went back to work. The stoppage had lasted just short of twenty four hours. Within a few years the brewery had closed, the farms had been sold, the gasworks shut, and people just faded out.”
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, page 51.

This one aspect of the brewing trade that has largely been forgotten: the widespread bottling of certain high-class beers by rival brewers:

“Bottling of Bass, Worthington and Guinness continued for a few years; in my mind's eye I see still the conical piles of filled bottles maturing, before being cased and sent into trade, in the old stone sheds. The whole system was unbelievably labour intensive and primitive, but the products were acclaimed - the bottled Guinness was generally accounted the finest in the area. The brewery buildings were turned into storage sheds and utilised as an outlying depot for Bentley & Shaw, having regard to the number of former Senior employees living in Shepley and working for Hammonds.”
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, page 51.

All three of those beers were bottle-conditioned at the time. Guinness continued to be bottled by other brewers right through until the 1980’s. In the North of England it usually came from Dublin, in the South from Park Royal, Guinness’s London brewery.

Continuing to bottle after the brewery had closed wasn’t uncommon. Guinness in Leeds in the 1970’s was almost always bottled by Musgrave & Sagar, a former brewery which still owned a few pubs serving Tetley’s beer.

Here’s a Senior connection with Tetley’s:

“The old water gathering system, no longer annually cleaned out by the miners in their holidays, with free beer all the week for their efforts, silted up and now lies forgotten beneath the fields. Some time after the Second World War a borehole was sunk in the brewery yard, the extracted drilling cores neatly ranged by it for curiosity, against the possibility it might be needed. In fact it was, as there was a national shortage of water in the mid 1950s, and Tetley's gratefully carted it by the tankerload all the way to Leeds for brewing. Perhaps the old borehole still survives? Slowly the brewery buildings were demolished for the dressed stone and, apart from a number of small buildings remaining, the site is cleared.”
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, pages 51 - 52.

Shepley is around 25 miles away from Leeds. Quite a way to ship water by road. Having lived in West Yorkshire I’m amazed that it could be short of water. It was always bloody raining. Almost as bad as here in Amsterdam.

Monday, 26 October 2015

Big Debenture Scheme by Hammonds

Takeovers can have a downside. They can make a company’s financial structure very complicated.

Because a company that has been purchased by another doesn’t immediately cease to exist. It will stick around until it’s wound up in the proper way. This could often be years after the purchase. Which was the case at Hammonds. For many years the companies they had absorbed continued on, often retaining their own directors and holding their own board meetings, even though power lay elsewhere.

It made sense to tidy things up. Which is what happened in 1951 at Hammonds.

“Big Debenture Scheme by Hammonds Breweries
Notes from Our City Correspondent— Friday Evening
A £1,250,000 Debenture issue and conversion scheme announced by Hammonds United Breweries of Bradford has as its main object the simplification and further co-ordination of the administration of the group.

Three subsidiaries are to be liquidated, entailing the repayment of five issues Debenture stocks. The concerns affected are the Ilkley Brewery and Aerated Water Company, the Springwell Brewery Company and Seth Senior and Sons. Holders of the Debenture stocks will be repaid par, with the exception of the 4.5 per cent. "A" stock of the Springwell Brewery, which has to be redeemed at 105 per cent.

As alternative to repayment, Debenture holders may convert into a new 4 per cent. Debenture stock, 1981, created by the parent company. At the same time the holders of Hammonds 4 per cent. Perpetual Debenture stock are to be invited to exchange into the new issue, on the basis £102 nominal for every £100 of existing stock.

The directors intend to issue £1,260,000 of the new 4 per cent, stock, of which £782,550 is being reserved to meet conversion acceptances. The balance of £457,450 and any stock not required for conversion purposes will be offered for subscription at par by all Debenture and shareholders within the group. The proceeds of the cash issue will be applied buying further licensed premises, the repayment of mortgages and loans and the provision of further working capital.”
Yorkshire Post and Leeds Intelligencer - Saturday 23 June 1951, page 6.

Liquidating a company was complicated, as various Debenture stockholders needed to be bought out. The money had to come from somewhere – so why not issue new Debentures to pay off the old ones? Hammonds gave stockholders the choice of cash or new Debentures. It wouldn’t surprise me if most went for the dosh.

It’s significant to see the first item mentioned in use for the cash is buying more pubs. Expanding their tied estate was most breweries’ obsession. The extra cash knocking around Hammonds would also have been useful for further takeovers.

They didn’t have much trouble shifting the Debentures:

“Hammonds' issue success
Hammonds United Breweries announce the issue of 4 per cent. Mortgage Debenture Stock 1981 has been fully subscribed and that the underwriters have consequently been relieved.”
Yorkshire Post and Leeds Intelligencer - Saturday 14 July 1951, page 6.

1981, eh? Presumably the stock never reached maturity, whet with Hammonds having disappeared into the corporate soup a couple of decades earlier.

Saturday, 24 October 2015

1950 – a mixed year for Hammonds

British brewing entered the 1950’s with a good deal of trepidation. The signs weren’t good. Beer sales were falling and costs were rising. Maintaining profits wasn’t easy.

Hammonds seem to have coped well, despite the tricky conditions:

“HAMMONDS UNITED BREWERIES LIMITED
Dividend maintained in difficult year

The 61st ordinary general meeting was held Monday, January 16, the Empress Hotel, Bradford, Mr. H. L. Bradfer-Lawrence, Chairman and Managing Director, presiding.

Group trading profits for the year ended September 30 declined by £46,000 to £558,000, but the net profit of £234,033 left good cover for the distribution of an unchanged dividend of 15 per cent. and a bonus of 5 per cent. The group balance sheet covering figure of £6,846,000 disclosed reserves amounting to £1,738,000 and net working capital £474,000.”
Yorkshire Post and Leeds Intelligencer - Tuesday 16 January 1951, page 5.

A 20% dividend sounds pretty good to me. That they could still pay that out despite a fall in profits must have been reassuring to shareholders. From what we’ve already learned, the family owners were happy to let Bradfer-Lawrence run the company as he generated a nice income for them.

The reserves and working capital look pretty healthy. I wonder if the reserves declined as Hammonds embarked on their takeover spree in the following years? The money to finance them had to come from somewhere.

Bradfer-Lawrence had a somewhat dewy-eyed view of the tied house system, and seemed to consider it a natural development.

“As I have said, the present tied house system has been evolved over 200 years of effort. It Is true the greatest fillip was given In the last 100 years. On the other hand, for many of the first 100 years it was an unconscious development which had to stand the trials and errors which always go hand in hand with development. The improvement achieved between the wars is the mark of success so noticeably attained and which was possible in no other way. Out of the "tied house system" has grown, however unconsciously, the Co-operative movement, and still later the multiple stores development. Between the first and the last there is little or no difference in distributive methods whatsoever.

All the national brewers except one have tied houses. Between them they own some 12 per cent, the total number and command about the same percentage of the total trade. The point has almost been reached when any further considerable amalgamation or absorption from the capacity point of view must a very gradual process from the physical point of view.”
Yorkshire Post and Leeds Intelligencer - Tuesday 16 January 1951, page 5.

Who were these national brewers? Guinness, for sure (they were the publess one). Bass and Whitbread, probably. Maybe some of the other large London brewers. I’m surprised by how large a percentage of pubs national brewers owned. Though I suppose it depends on how many brewers were considered “national”.

I know exactly which brewers were national in 1974. And by then they owned more than half of Britain’s pubs:

Tied House ownership in 1974
Brewery No.Tied houses % of total
Courage 5,921 8.18%
Grand Metropolitan 5,946 8.21%
Scottish & Newcastle 1,678 2.32%
Allied 7,665 10.59%
Bass 9,256 12.78%
Whitbread 7,865 10.86%
Total Big 6 38,331 52.94%
Other brewers 13,800 19.06%
All brewers 52,131 72.00%
Free houses 20,273 28.00%
Total Full on-licences 72,404
Source:
Monopolies and Mergers Commission


It’s strange to think that Bass used to own 1 in 8 pubs. Or is it scary?

Comparing tied houses to the Co-operative movement is just  . . . weird. Other than both being examples of organisations running multiple retail outlets, I can’t see the connection.

Now something about bottled beer. Which seems to have been the only chink of daylight for beleaguered brewers.

“More bottled beer sold
Trading conditions during the year have been somewhat patchy although over the whole of your combine we have reason to feel satisfied. Cask barrelage output, in spite of a substantial decline experienced by one important subsidiary, is very little below that for the previous year, end the percentile fall is much less than the national figure. There has been, however, a welcome increase in bottled beer sales; whilst wines and spirits sales have increased considerably.

The general trend from draught beer to bottled beer is in an upward direction, but still very slow. In 1939 the respective figures were for 75% draught and 25% for bottled beer sales. Today, after 12 years including 6 years of war, the figures are 70% and 30% respectively.”
Yorkshire Post and Leeds Intelligencer - Tuesday 16 January 1951, page 5.


I’d be interested to know what the draught/bottled split was in 1945. Because the proportion of bottled beer produced fell during the war, for a variety of causes. But mostly because making it used more resources than draught beer. 1939 to 1950 isn’t a great comparison for that reason.

One reason that the percentage dividend seemed so high was that the company’s assets were undervalued:

“A dividend of 15 per cent, and a bonus of 5 per cent. on the Ordinary capital may at first seem high. It must however be remembered that the fixed assets have in most cases remained at the figure at which they were acquired (in some cases as long as 60 years ago). Whereas annual figures the accounts reflect from year to year the steady (in wartime rapid) depreciation in the value of money. If the fixed assets, which form such a great part of the balance sheet total, were revalued at current prices they would reveal substantial hidden values bringing the capital employed into true perspective with the greatly increased annual operating costs and so properly reducing the interest rate yield to shareholders to a much lower percentage. This would accord more with the present fractional value the pound (as compared with 60 years ago, when most of such fixed assets were last valued).”
Yorkshire Post and Leeds Intelligencer - Tuesday 16 January 1951, page 5.

Using 60-year-old valuations seems totally crazy. Why hadn’t they revalued their assets?

Finally this little paragraph, which doesn’t quite mean what you might think:

“During the year, pensions schemes (cum life assurance) for staff and working directors have been entered into with the Guardian Assurance Company which will amplify and/or incorporate similar and more limited schemes already in operation in certain subsidiaries.”
Yorkshire Post and Leeds Intelligencer - Tuesday 16 January 1951, page 5.

By “staff” they don’t mean all employees, just salaried ones. That is, those employees paid monthly rather than weekly. Basically those with office jobs and the like. During the 1950’s employers started to use pension schemes as a way of retaining staff during a time of full employment.

Thursday, 22 October 2015

Melbourne of Leeds

When looking at the takeover madness of the 1950’s and 1960’s, I’m tempted to ponder what might have been.

Drinking in Leeds in the mid 1970’s, it seemed inevitable that the city should be dominated by Tetley. But things could have turned out very differently. And once again, personalities played a role in how things played out.

Anthony Avis once again gives us the insider’s view.

“LEEDS & WAKEFIELD BREWERIES, MELBOURNE BREWERY; LEEDS
Perhaps the only real competitor Tetley's had in Leeds as to quality and popularity of beer was the Leeds and Wakefield Brewery company (later called Melbourne Brewery after the name of its brewery premises), run by the Ford brothers. It was well managed and had the distinction of owning the biggest trading pub in Leeds - the Fforde Green in Chapeltown. John Henry Ford was friendly with HLBL, and it was through him that secret talks went on in 1959 about L&W joining the consortium Taylor was trying to put together of Hammonds, M&R and H&A; it fell apart because none of the leading players was disposed to surrender his perceived seniority Talks still continued in the hope that one day Melbourne would join in; it did not happen, as Melbourne's chairman, H J S French, was an insurance company shareholder nominee, and not inclined to E P Taylor and the newly created United Breweries. He had opened negotiations with  Tetley's to sell the company to them, already having in his pocket the insurance company shareholding and the commitment of one of the Ford brothers; Tetley's succeeded in their bid. This swiftly led to Tetley's merging with the Walker Cain brewery of Liverpool and then with Ind Coope & Allsopp of Burton; and a new brewery giant was created. It was all quite unnecessary, but was part of the hysteria of the times. John Henry Ford, who had been in favour of joining UB, retired from the business and went to Norfolk and became a fruit farmer.”
"The Brewing Industry 1950 - 1990", by Anthony Avis, 1997, page 123.

Things like this happened more than once. Many in the industry didn’t Like E P Taylor and it seems that he missed out on several deals because of it. The merger of Ind Coope, Tetley and Ansells to form Allied Breweries was seen as a panic reaction to Taylor’s attempts to assemble a national group.

M&R is Moor & Robsons of Hull, H&A Hope & Anchor of Sheffield and HLBL Bradfer-Lawrence, in case you’re wondering.

The Fforde Green wasn’t in Chapeltown but in neighbouring Harehills. It was a big 1930’s pub, of which Leeds had some fine examples. I only ever went there a couple of times. Once being to see the Flamin’ Groovies. It’s now a supermarket.

Melbourne had some fine pubs. Many features of their livery – the bowing courtier logo, for example - were still to be seen in etched windows and mosaic floors. The Rising Sun on Kirkstall Lane was a particularly good example. Also sadly closed. Thinking about all those pubs with Bass Charrington signs is just weird. But that’s what would have happened had Eddie Taylor got his way.

Bass had remarkably few pubs in Leeds, considering the West Yorkshire origins of one of the core parts of the company. So few, that when the Big Six swapped pubs in the early 1980’s, Tetley gave Bass some of their Leeds pubs. It gave some idea about what a Bass takeover of Melbourne would have entailed. Because while Tetley looked after their historic pubs, Bass buggered up theirs with crap renovations.

I’ll finish with the pair of analyses I have for Melbourne beers:

Melbourne Brewery bottled beers
Year Beer Style Price per pint d OG FG ABV App. Atten-uation colour
1938 Melbourne Gold Cup Pale Ale 1040.8 1008.2 4.24 79.90% 28 Brown
1949 Light Ale Light Ale 12 1029 1005.9 3.00 79.66% 27.5
Sources:
Whitbread Gravity book held at the London Metropolitan Archives, document number LMA/4453/D/02/001.
Whitbread Gravity book held at the London Metropolitan Archives, document number LMA/4453/D/02/002.

For those of you living in the UK, here's a film of Melbourne just before they closed.