Boffin says beer buffs are best

It is, of course, what we who have imbibed a pint or two over the years have always known. Beer is inspirational. Winston Churchill knew all about this during the Second World War when he insisted that the beer reached the front line troops no matter what else. This despite the fact that he preferred the bubbly.

I personally have found that a good ruminate over a pint can often solve a tricky looking problem. Anyway, we now know that, whatever the killjoys say, beer is our saviour. The Campaign for Real Ale (Camra) and microbrewers should be an “economic inspiration” to the nation as it struggles to emerge from recession.

Experts at the prestigious Nottingham University Business School believe the ever-mushrooming number of microbreweries offers hope for the UK’s small businesses. The economists say that real ale’s rebirth in the wake of the Camra’s founding in 1971 has significant implications for the UK economy.

In the 19th century brewing was a major economic force in the land (although many didn't want to acknowledge this at the time of the Temperance Movement). There were 1,324 breweries in 1900 but by 1970, we are told , the number surviving in England had sunk to just 141. However by 2004 the number stood at 480. The latest count from brewers' society SIBA estimates there to be more than 700 for the UK as the demand for locally produced ales appears to be insatiable, as we well know at B&P.

Yes, Camra had done much to promote the climate for this over many years. But then the Labour Government managed to do something decent for the industry. Gordon Brown, as chancellor, accepted the call for tax breaks for small brewers. The ranks of the microbrewers was consequently bolstered by the introduction of Progressive Beer Duty in 2002. This, says the boffins, demonstrates that tax relief can also help rejuvenate industries.

Professor Peter Swann said, “The fact is that the business world can learn an enormous amount from our beer buffs. The range of products and the number of centres of production in brewing in England declined dramatically between 1900 and 1970."

“As is widely accepted, that process began to reverse with the formation of CAMRA and its fight against bland, mass-produced beers. This has led us to the position we’re in now, with hundreds of small breweries spread all over the country and making thousands of different beers."

Good to hear. Then the prof gets a little proffy: “In technical terms, this represents horizontal product differentiation and a reduction in the importance of the economies of scale."

This, apparently, means that variety is indeed the spice of life and that more discerning tastes can be good for the economy.

He added: “We’re often told small businesses will be key to the UK’s financial recovery. The fall and rise of the local brew offers us a perfect example of ‘small is beautiful’, so it’s vital to see what lessons we can learn from it."

“One of the most important is that a demand for the predictable can lead to the greater geographical concentration of an industry. By contrast, a demand for diversity can lead to greater geographic dispersion — which is the excellent position brewing finds itself in now."

The prof believes that CAMRA and the microbreweries should serve as an economic inspiration — and he states this as a man who proclaims he doesn’t even like beer.

That's a great shame and his loss I fear. But for lots of us it means that we have been 'doing the right thing' all this time - helping to support one of the few British manufacturing sectors that shows real sign of growth. Time for another pint perhaps?