Timothy Taylor brews up expansion plans

HISTORIC Yorkshire brewery Timothy Taylor has embarked on a strategy to grow its successful pubs division.

But speaking to TheBusinessDesk.com, managing director Charles Dent said any growth within its real estate arm would not be to the detriment of the quality of its range of beers.

Mr Dent said: “Our plans are very simple: to go on doing what we’ve always done on the brewing side plus expand the pub side where we see the opportunities.

“Our focus will continue to be on delivering great service to customers all around the country and making sure the quality of the product is maintained.”

Mr Dent admitted that the downturn in consumer spending had hit its sales over its last financial year.

Turnover for the year ended September 30 2010 was £22.4m with pre-tax profits of £3.2m. It is yet to publish its results for its latest full year.

However, Mr Dent was upbeat about the future prospects for the brewery, which has been established and brewing beer in Keighley, West Yorkshire, since 1858, despite the growth of microbreweries leading to more competition.

Timothy Taylor has a portfolio of 17 tenanted pubs and also has nine managed hostelries.

Mr Dent said Timothy Taylor had been pleased with the performance of the latest addition to its stable – the Town Hall Tavern in Leeds – and was on the look-out for further opportunities should they arise.

Mr Dent also hailed the impact of a recently completed £11m project at its Knowle Spring brewery, the final part of which is a new extension (pictured right).

He said the extension, which includes a multi-million pound barrel washing system and six new fermenting vessels, had helped to boost brewing capacity.

Mr Dent attributed the drop in sales to a tough market and the loss of three major customers.

He was scathing about the levels of excise duty put on the alcohol industry by the Government.

“They ought to bring excise duty down over a four or five year period,” he said. “The ability to deliver jobs and growth is quite significant in our sector.

“It’s a tough market out there. There’s a big vogue for more beer choice. But our whole nature and ethos is that consistency is the most important thing. Everything we do is about consistency.”

On the pub side, operations director Marc Craddock said Timothy Taylor’s offering of good food and drinks was tempting in consumers.

Mr Craddock said: “We see a gap between the big corporate restaurants and your local pub. We believe we can operate successfully and there are further opportunities out there.”

Sales director Grant Simpson described Timothy Taylor’s best known beer, Landlord, as the “original Peroni”, meaning customers were prepared to pay a premium because of its quality and taste.

Mr Simpson said the strategy for the business included expanding the number of supermarkets that sell Landlord in bottles, as well as looking to increase overseas sales.

He said Landlord was popular in countries with high populations of expats, such as Australia, Spain and the Middle East.

“At present exporting is more of an interest area for us but it’s an opportunity,” he added.

Timothy Taylor is set to launch a number of initiatives to celebrate the 60th anniversary of Landlord this year. The beers shares its Diamond Jubilee year with the Queen.

Asked why Landlord has been so successful, Mr Dent said: “It tastes good. It’s also won the industry prizes and it’s difficult to win those prizes.”