M&C Report talks to Stephen Oliver, managing director of Marston’s Beer Company, about his best investment, the best piece of advice he’s ever received and identifies the person who has had the most influence in his career.
What is the most important action the industry can take to encourage the consumer? It’s about awareness and attitude. Be aware that consumers don’t have to spend their hard-earned cash in pubs or on beer - there are plenty of other temptations. Have a positive attitude to standards, proposition/offer and customer service. Be unrelenting in pursuit of excellence.
What single action could Government make that would make a difference? The most important thing the Government could do is to stimulate the economy and help consumers feel more confident again. This would have an infinitely more significant impact on the industry than any single industry initiative.
What is your top priority? I am focussed on building our key beer brands, Pedigree and Hobgoblin, and consolidating our market leadership of premium cask and premium bottled ale in a very competitive market.
What has been your best investment? Putting aside the acquisitions of Jennings, Ringwood, Wychwood and so on, my best investment was putting in a new bottling line at Burton in 1995; this helped us grow our packaged business for own brands and contract work. We’re just adding on a new £7M second line as we’ve outgrown the first now.
What has been your best business decision? The best decision I made was to introduce a Plain English tenancy agreement and independent rent panel when I was MD of Marston’s Pub Company. This meant that we were significantly less exposed than some of our competitors when the down-turn came after the smoking ban and the recession hit.
How much has your business changed to combat the recession? We have increased investment in marketing, research, new product development, sales force resources and training. In fact, across all our channels of trade we’ve had to improve what and how we do it, just while margins have been under pressure, especially as more of our volume has shifted from ‘on’ trade to ‘off’. To enable us to do this we’ve had to scrutinise all cost areas very closely and be rigorous in reducing waste and inefficiency.
Who is doing something special in the industry? It would be invidious to single out any one individual or company. But if pressed, I would have to mention our local Burton MP, Andrew Griffiths, who is really working hard for the industry in Parliament.
Most admired brand? The way in which McDonald’s, as a ubiquitous, mass-market brand has refreshed and rejuvenated itself has been a great example of how careful and imaginative brand management can continue to make a product or service relevant through tough economic and socio-political times.
Who has been the most influential in your career? My father, who instilled in me a work ethic, values of integrity and concern for people. Even though he came from a non-business background (he was a head teacher) he always encouraged me in whatever I chose to do in business and had a gift for asking the most challenging of questions.
What is the best piece of advice you have ever received? My first boss, David Gordon, at Marston’s said ’ no one ever went into a pub to come out feeling worse than when they went in’. He didn’t mean ‘worse for wear’, of course. People go to the pub to enjoy themselves and to put behind them the cares of the day. That’s why licencees who bring their own troubles into the pub with their customers just get it so wrong.
