Beer Business On The Up - Platinum Media Group

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Beer Business On The Up

The new Asahi UK Managing Director, Tim Clay, talks to us about his upcoming new role at the Woking-based Super Premium Beer business. Interview by Molly Edwards.

"New Year, New You" is a very common phrase at this time of year. However, Super Premium

Beer business, Asahi UK, have a slightly different take on this phrase - “New Year, New MD”!

Last month Gary Haigh announced his retirement as Managing Director, and
Asahi UK announced the appointment of current Sales Director, Tim Clay, as their new Managing Director, who starts in January.

Walk into almost any UK bar or pub and you will be greeted with a range of premium beers on draft and bottled. Woking based Asahi UK, a subsidiary of Asahi Europe, is a major player responsible for the growth of these Super Premium Beer brands across the UK and Ireland, with beers such as Peroni Nastro Azzurro, Pilsner Urquell and Kozel in its range.

Current managing director, Gary Haigh, has overseen operations since 2011 and was a key contributor in the sale of Miller Brands UK

to Asahi Group Holdings in 2016. Gary aided Asahi’s position as the UK’s leading Super Premium Beer business and oversaw category defying innovations such as Peroni Piccola, Peroni Gluten Free and Peroni Ambra.

Commenting on the change, Gary Haigh said: “I’m delighted to be handing over the reins to Tim Clay who has been a key part of the team and has achieved outstanding results during his time as sales director. It’s been fantastic to work with the company at such a critical time of its evolution, and see how the brands have grown to be such an integral part of the premium British beer landscape.”

Tim joined Asahi in 2013 and is responsible for the brands’ outstanding year on year revenue growth. Surrey Chambers Business Magazine caught up with Tim to talk about Asahi’s premium beer brands, the beer industry and their work in the local community.

How do you make people aware of your premium beer brands?

“‘World Beer’ is an industry term that has traditionally been used to describe higher-end beers, typically imported from the continent and beyond. The emergence of UK Craft at the top end of the market and continental flavoured lagers has diluted the term ‘world’. A premium is happily paid so long as the ‘worth-more’ credentials of a brand are clear to the consumer - great tasting beer, combined with authentic heritage and genuine provenance.

“The term ‘Super Premium’ unites such brands - heritage beers, craft and genuine imports. Created in 1963 as a symbol of quality, style and distinction, Peroni Nastro Azzurro still carries the same Italian passion, creativity and excellence. Every bottle and keg of Peroni Nastro Azzurro is brewed in Italy using the same ingredients now as they were then.

“Super Premium Brands convey such value through their packaging and marketing activity that will equally drive value for the retailer. We conducted extensive consumer research to map out the new market landscape and understand more about why certain brands are considered to be higher quality and worth more by consumers. Interestingly, consumers clustered the brands into three segments, Standard, Premium and Super Premium, which is where the category term was identified and derives from. We then explored the reasons why these brands were selected and the perceptions behind those choices. Our research unveiled that higher quality beer brands such as Peroni Nastro Azzurro were felt to have the most authentic brand stories and distinctive taste pro les; whilst some Standard and Premium brands were considered to taste ‘chemically and watery’, with no story to prove their origins and win the heart of the customer.”

How is the current economic environment effecting the beer industry, if at all?

“The Super Premium category is currently growing at 16% in value (total trade), vs. a growth of 13% the year before, demonstrating the consumer movement towards better quality products (source: CGA/IRI to Dec 2016). 40% of shoppers seek products that meet Super Premium occasion needs, and 66% of beer is consumed with food. Retailers need to ensure they have a strong super-premium range and that this is easy to navigate.

selected and the perceptions behind those choices. Our research unveiled that higher quality beer brands such as Peroni Nastro Azzurro were felt to have the most authentic brand stories and distinctive taste pro les; whilst some Standard and Premium brands were considered to taste ‘chemically and watery’, with no story to prove their origins and win the heart of the customer.”

How is the current economic environment effecting the beer industry, if at all?

“Marketing initiatives such as meal deals can capture these at home dining occasions. For example, retailers can ensure Peroni Nastro Azzurro is placed with premium Italian ingredients to make the shopping mission simple and appealing. Beer volumes in the off- trade (retailers) have surpassed the on-trade (bars and pubs) for the rst time, which means consumers are behaving differently, so some people are feeling the effects.

“But for us, the occasions where our brands are enjoyed are still thriving, and as the leading player, we’ve enjoyed growth year on year. Consumers, pubs and bars are constantly evolving and expecting more from their brands, so it’s our job to stay out in front.”

Asahi is based in Woking; do you have any plans to ‘make your mark’ here?

“Asahi UK has been in Woking for about ten years, originally as Miller Brands UK, part of SABMiller. Now ourselves and the Asahi Europe business being based here, we want to continue as Asahi UK working with the likes of Woking Borough Council and Surrey Chambers of Commerce.

“I also live in Horsell, so as a local it’s important for me to see that local businesses are doing more in the community. I think there will be new opportunities for us in 2018 to strengthen our presence here, develop some local partnerships and increase our activity in the community.”

How do you work locally in the community?

“We have supported the Surrey Wildlife Trust and WWF in the past, and continue to encourage our employees to take part in activities like clearing trees in Camberley and Chobham Common to preserve the heathland there. In 2018, we want to help develop a CSR platform for our employees to engage in more local charity and community work. I think there are a lot of great initiatives in Woking that we’re not yet tapped into, so we’re looking forward to doing more in the new year.”

Given you import your products from the EU, are you worried about Brexit?

“We will continue to operate as we do now and monitor how things progress, ensuring our interests are represented through the British Beer and Pub Association. The UK’s ties with the continent are not going anywhere any time soon, so we are going to keep bringing in some of the best beers they have to offer, like Peroni Nastro Azzurro.”

What do you think about some of the alcohol problems in the high streets? As a producer, does Asahi do anything to help reduce those problems?

“We take alcohol responsibility very seriously. Not only do we continue to support Drinkaware and their campaigns to tackle harmful consumption, we have a number of internal policies and training sessions to educate and ensure our employees are ambassadors for our products in every respect, including responsible drinking. This extends to how we market and sell our products, where we have principles we uphold to prevent our products from appealing to people underage, or condoning or reinforcing any irresponsible behaviour. It’s all underpinned by an enforcement committee, which assesses our commercial material through that lens.

“The committee is a cross-functional group, but what makes it unique is our chairperson Louise Punter, CEO of Surrey Chambers of Commerce; so we have an independent member who can offer an impartial perspective.

“We are also going to become an active sponsor of the national Best Bar None scheme, which works with the licensed trade, police and local authorities and the private sector to reduce alcohol related crime and disorder in local communities. It has the backing of
the Home Of ce and there are schemes all over the country, growing annually. If we can become involved in schemes which make the night time economy a safer, and more enjoyable place to be, then I believe it’s a great initiative to support.”