SAB Miller buys Meantime to enter UK craft beer market
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Version 0 of 1. The boss of London’s Meantime Brewing Company has defended the independent beer maker’s decision to sell out to SAB Miller, in a deal that allows the global brewer behind the Peroni and Miller brands to muscle in on the UK craft brewing boom. Nick Miller, Meantime’s chief executive, said the craft tag was increasingly redundant and that selling to the world’s second-biggest brewer would not harm the company’s reputation, built up over 16 years as a standalone producer. “I think the term ‘craft’ will disappear. It will become the norm that we have craft beer whether the brewer is big or small. If you stay true to what you believe in, which is high quality premium beers... I think the drinker will welcome that.” Meantime was founded in 1999 by brewer Alastair Hook in a flat in Greenwich and its most popular brews include London lager, London pale ale and London porter. It now operates from a modern 120,000 hectolitre brewery in Greenwich and has two pubs, the Greenwich Union and the Old Brewery bar. Related: Q&A best bits: running a craft brewing business SAB Miller said the deal, sealed for an undisclosed sum, would give it a presence in the fastest growing part of the UK beer market. It plans to increase sales of Meantime beer in Britain beyond the brewer’s London base and is considering exporting to Europe. Meantime increased production by 58% last year as demand for craft beers increased. Growth has quickened this year, Miller said. The overall UK beer market grew by 1% in 2014. Britain is experiencing a surge in craft brewing. Even as pubs close at a rate of about 30 a week, the number of breweries has increased by 10% over each of the past two years to more than 1,400 – the most since the 1940s. The boom is led by small operations making distinctive ales in and around London, Leeds and other major cities. Related: Meantime's sale to SABMiller won't stifle the craft beer renaissance Mindful that the independent status of craft brewers contributes to their popularity, SAB Miller and Meantime stressed that Meantime would keep its autonomy and distinct character. SAB Miller’s purchase of Meantime is a further sign that craft beer, originally associated with hipsters, beards and tattoos, is going mainstream. JD Wetherspoon, the pub chain, has started stocking beers made by BrewDog, the avowedly anti-establishment Scottish brewery. Craft beer is now included in the basket of goods used to calculate inflation. It remains to be seen how the purchase of Meantime by SAB Miller, which owns mass brands such as Foster’s in Australia and Miller in the US, goes down with UK beer enthusiasts. Meantime’s Miller said: “Why would Meantime suddenly not be a craft beer because it’s got a different set of shareholders. Are we saying the shareholders determine whether we are craft or not? This morning, Alastair and I had no different values to the ones we had yesterday.” But Richard Burhouse, founder and managing director of Huddersfield’s Magic Rock brewery, said being owned by SAB Miller was at odds with the spirit of craft beer. “Any credibility they had will be gone but I’m not sure how much it will affect them because I think they’ve been going into the mass market where customers are not so bothered. I don’t begrudge Alastair doing this. He’s been doing it [brewing at Meantime] a long time. Never say never but it’s not on my mind at all that if we had an approach we would consider it.” Craft ale has become difficult to define as its popularity has grown. The Campaign for Real Ale does not class Meantime’s beers as real ale because they are served from a pressurised keg. Miller said top quality ingredients, character and lack of pasteurisation supported Meantime’s craft status. Tom Stainer, Camra’s head of communications, said: “Whilst Meantime do not currently produce real ale, Camra are nonetheless concerned that choice for beer drinkers may be reduced following the acquisition of the brewery by SAB Miller, who may focus on a handful of core beers rather than a wide range. We would also urge the brewery to consider returning to brewing real ale in the future.” The companies did not disclose the price SAB Miller will pay for Meantime. Meantime’s chief executive said he, Hook and about 60 other investors, including some employees, owned the business. Miller and Hook will continue to run Meantime. They will receive funds to expand the Greenwich brewery and will also be in charge of a new product development facility to come up with new beers for SAB Miller. |