Lager that stays cool - stays king
Lager continues to be the cool winner in the British drinks industry, over the last ten years it has increased its market share over traditional ales and stouts and is expected to account for 80% of all beer volume by 2010 in a market that is already worth over £11+ billion.
Industry experts are reminding drinks professionals that they need to consider how they store their draft lagers to maintain the optimum condition in the search for profitability. ‘Out of sight is out of mind’; most probably sums up how most landlords and bartenders feel about their cellars. Now however there is an even greater incentive to put your cellar in order in the guise of the Government backed ECA Scheme for energy-saving investments, which has recently been expanded to include cellar-cooling equipment. The inclusion of cellar cooling equipment is a major step forward for the on-sales sector with significant cash flow incentives now being made available not only for the purchase of cellar cooling equipment but also for the additional costs of delivery and installation.
Hubbard Commercial is the UK’s first manufacturer of ECA qualifying cellar cooling equipment and as leaders in the field of commercial cooling and refrigeration for over twenty years have worked closely with both brewers and publicans to create a range of cost effective and highly efficient cellar cooling equipment. Dougie Stoddart, Hubbard Commercial Manager says “The current strong demand for lagers means that good quality cellar management is now an essential component of showing a profit at the pump. Now going ‘green’ not only saves money but can cost effectively improve the presentation, delivery and profitability of high quality ales”.
The Enhanced Capital Allowance (ECA) scheme is designed to encourage UK businesses to reduce carbon emissions, which contribute to climate change by encouraging them to purchase Carbon Trust approved energy-saving equipment. The incentive for the Freehouse sector is two fold, firstly, ECA qualifying energy saving- products are certified highly energy efficient and should produce significant long-term financial benefits by reducing energy bills. Secondly, tax breaks provide upfront tax relief, enabling businesses to claim 100% first-year capital allowances delivering a cash flow boost and shorter payback periods on investment. Interest free, unsecured loans are also available to help the Freehouse sector bring its cellar cooling equipment ‘up-to-scratch’.
All of this is great news for the Freehouse sector which, with 16,000 outlets accounted for an estimated 19% of all on-trade beer sales in 2005.
No matter how big or small the Pub lifting the lid on the black hole that is the cellar could save money as well as putting it back into cash flow, for example a Hubbard cellar cooling system costing £2850 including delivery, installation and commissioning charges would experience an immediate ECA benefit of £236.55 based on a 10 year asset life and an internal rate of return target of 15%.
For more advice and to check out ECA approved cellar cooling equipment visit http://www.eca.gov.uk/etl.