Putting this issue to one side, micro-brewers have also brought real interest, different styles and the notion of hyper-local production to the UK beer market. Beer consumption has dropped overall, but there is now an increasing interest in craft beers. While the on-trade (pub sales) rebalances and takes time to find a new equilibrium, beer for consumption at home continues to grow.
In response to this competitive environment, we're developing new products, such as our Jack Brand beers, aimed at the growing craft beer market. New product development makes up 24% of our sales volumes.
Tapping into opportunities
A squeeze on margins and a crowded market has made for a difficult 12 months, but has also presented us with an exciting opportunity. Our response has been to become more innovative and fleet of foot, celebrating the products and values of which we are so proud.
Take our leap into the spirits market in 2010. We made the decision after seeing and responding to the success of micro-distilling in the US. We retrained and appointed our brewing engineer John McCarthy as head distiller. This gave us the knowledge and in-house expertise we needed, without constraints. The nature of our product selection has grown organically, so far, in response to demand and market trends.
After only three years we've won a string of awards, including a Gin Trophy at this year's International Wine and Spirits Competition – further proof that development and change work. Awards not only drive confidence and motivation, they also provide a benchmark against which staff can compare themselves.
The 'Adnams way'
On the ground, we have a team which is always looking at market trends and developments. Company structure plays a part. We have a flat structure and are willing to listen to ideas. This enables us to quickly evaluate any suggestion and, where appropriate, develop it in the 'Adnams way'. It is a format that lends itself naturally to innovation, and has helped us remain competitive.
Encouragement is key; reward people for doing the right things. Often management is viewed as a policing role, where you catch people doing things wrong, but that way of thinking crushes self-esteem and discourages people from putting forward their ideas.
Our staff are at the very heart of the Adnams brand story. In uncertain times, however, morale must be carefully nurtured. We know happy, motivated staff perform better, and part of achieving this is through open communication.
Senior management is charged with the task of ensuring teams are briefed and updated, so they are constantly aware of the challenges of the market. We work every day to be a trusted employer – a rare commodity in recent years.
Adnams is a company with a host of strengths. Our key to survival is not only rooted in our culture as a values-based business, but also in our goal to keep innovating and ensuring staff and customers are happy. As CEO, my aim is to create the right cultural conditions: a culture in which ideas and risk-taking are valued, rather than discouraged.
Andy Wood (pictured) is CEO of Adnams
