Coronavirus crisis: Grantham brewer warns of pub closures as it launches online sales to public

By The Editor 12th Apr 2020

A Grantham brewer has warned of pub closures as a result of the pandemic.

The threat comes as the owners of premises are still demanding rent, even though due to the lockdown, many pubs and bars now have no income.

Sarah Barton owner of Brewster's Brewery says the lockdown has had a 'monumental impact' on her business, with sales 'dying overnight' on the day (March 23) when pubs were ordered to close.

Since it began selling beer in 1998, Brewsters has grown steadily, winning dozens of awards and even exporting to places including Italy and Russia.

Like with many brewers, pubs are the main market for Brewsters, taking most of their output. Already in the run up to the government shutdown, orders from the pub trade had been falling week by week.

The government has launched support schemes for the hospitality sector, such as pubs, but as yet, Sara says there is nothing for suppliers.

"We fall outside of this as our rateable value is too high to get any rate support and as a brewery we do not qualify for any of the grants out there. We have had to furlough our staff apart from one person part time to deal with our online sales operations."

To respond to the new challenge, Brewsters has starting selling over the internet to help generate some income to try and offset the ongoing cost of rent and rates.

A click and collect service has been launched at the brewery at 5-6 Burnside, Turnpike Close, Grantham. It also operates from the Marquis of Granby pub, in Granby, which is run by Sara's husband Sean McArdle.

Sara explained: "Allowing payment online by card and collection makes sure we minimise any contact. The customer gives us their name and order number and we can give them their beer, maintaining social distancing when we do this."

As yet, the brewery does not do home deliveries but it hopes to.

Online sales grew slowly at first but as more people found the website, Sara says a lot more orders came in.

People can buy a range of 5-litre mini-casks and cans through the websites for the brewery and the pub. Collection days are Thursday and Friday 3-5pm and Saturday 10am-12pm.

Sara continued: "We will continue with online sales after the crisis passes and hope that we will have been able to further develop our sales direct to the public.

"I think it will be some time before pubs reopen and then there will be a lag for breweries to get up and running and producing beer.

"I think that the government will need to do a phased approach to allow everyone to come up to speed. This stretches right down the supply chain to maltsters, hop producers for our industry."

Sara also warned: "Furthermore, if people have got out of the habit of going to the pub during isolation they may decide to stay home or reduce the number of times they visit pubs during the week.

"The aftermath of this is that many more pubs may close as a result of cashflow problems due to spoilage of product, still having to pay rates and rent and other costs that don't just go away when the doors are closed."

Brewsters appreciates the support local customers have given their online sales and Sara says other local businesses need it too.

Sara said: "I would encourage people to support local businesses as these sales are a lifeline for small companies that still have expenses at this difficult time.

"There are still a lot of pubs having to find rent to pay to pub companies who are still demanding payment although the pub has no income."

This is an issue raised by Nick Holden, landlord of the Geese and Fountain in Croxton Kerrial, as Grantham Nub News featured yesterday.

Sara added: "Thank you to our customers and we hope that we are all able to come out of this safe and sound."

     

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