Beer here: a confluence of events makes for a mixed bag of beer sales this year

Cheers,  June, 2003  by Michael Sherer

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STAYING IN CONTROL

The drop in traffic, due to the war in Iraq, a tough economy and terrible winter weather in many parts of the country, has caused many operators to find new ways to tighten their belts and stay sharp. Often that has meant tighter inventory control and fewer offerings.

Five years ago, for example, Bennigan's was known for its Copper Clover beer program. The program put as many as 100 brands of beer in a Benoigan's unit, making the chain a real beer destination for customers.

"The beer game has been a question mark for Bennigan's the last couple of years," says Jim Barnett, beverage brand manager at the Dallas-based 'chain; "We lost momentum with Copper 'Clover because high turnover of both employees and managers meant the staff was not as well educated. We had so many brands that we couldn't keep a quality beer in the cooler."

Since it pulled the plug on Cooper Glover four years ago, the chain has examined its overall beverage program. Cooper Clover made Bennigan's a beer destination at the expense of its spirits program, according to Barnett. The chain has since revamped its beer program, cutting invetory and is now considering reducing the number of tap handles in most units to 20 from 30. Stores now must carry a minimum of 35 beers and a maximum of 45 from an approved list of about 100 brands.

More than 80% of our sales come from 16 products, and the top 50 account for 97% of our beer sales." Barnett says. "Why would you want to carry more than that?

Other operators are following similar strategies. Red-bones now has 24 lines, down to 50 from 60 five years ago. Many are rotated to give customers a taste of new Yard House plans to put 105 tap handles in the new units it is opening in San Diego and Denver, down from 25 in existing units. Inventory will concentrate on high-demand local beers in each market.

A side benefit of good inventory control is fresher product, Because brewers such a A-B and Boston, Beer have been touting freshness for several years, consumers now have higher standards for freshness.

"Bigger, better, fresher is our motto," RAM's Aardahl says. "That's one advantage of a brewpub. You can see the beer being brewed. You can smell it, too."

But you don't have to brew you own beer to ensure that the beer you serve is fresh. Paying attention to product rotation of both bottled and draft beer is key. And more operators are pushing draft as a fresher alternative.

Draft continues to be the way we want to go, both-from a teste and profitability standpoint," Johnson says.

"Our draft sales are way up -- about five percent -- bucking the trend to bottles," Lane says. "We've really been pushing draft, especially since we moved to all stainless components." Winking Lizard's stainless draft system means less likelihood of off-testes and odors.

Bennigan's will implement a freshness program for all units by the end of the year. "Born-on" dates on kegs will be logged when beer is delivered and again when tapped. Dates will be checked periodically, and out-of-date kegs will be pulled.