M&C Report talks to Jonathan Neame, chief executive of Kent-based brewer and pub operator Shepherd Neame, about his best investment, his best business decision and the best piece of advice he’s ever received.
What’s the most important action the industry can take to encourage the consumer?
Invest to improve the standard of the retail offer; by which I mean, bricks and mortar, training, retail offer etc etc. The best way to do that is by physical investment – money – and strong partnerships.
What single action could Government take that would make a difference?
Reduce the tax burden on the pub. The Government should be very pleased with the result from the duty cut and I think there’s a strong case for the Government going further. That doesn’t mean I’m prioritising that over the other arguments [about tax], it’s just a question of evolving the arguments to reduce the overall tax burden on the pub as the Government can afford it.
What’s your top priority?
We’ve made a lot of changes in the past year so my top priority’s to consolidate all those changes. Also investing in the hotels.
Best investment?
We’ve been very conscious of the fact that the last four or five years may turn out to be a unique moment in time to make high quality, selective acquisitions at a time when money is cheap. So I would say all of the investments that we’ve made in that time have been the right decision that has enabled us to dispose of our weaker assets and strengthen our asset base.
How much has your business changed to combat the recession?
I don’t think the core values, standards and core principles of the business have changed at all. In fact I think the recession has strengthened those things. I think family businesses tend to do extremely well in recession. The recession has been a great opportunity for us to strengthen our business, both our pub business and our beer business. We’ve taken some bold decisions in that time that I’m very confident will be the right things for the company long term.
Who has been the most influential in your career?
Rick Peel [former managing director of Coba, the strategic consultancy, where Neame previously worked]. He gave me the platform in terms of the business basics of reading accounts, analysis, strategy. He was a very shrewd man. He was very, very influential in my 20s.
What’s the best piece of advice you’ve ever received?
Probably to transfer our pension into a defined contribution pension scheme in 1994. We were very early in on that, so we haven’t had any of the issues of the final salary scheme. But it also means our individual pensioners, or people paying into it, have much longer to develop their own investment pot.
