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09
Jul 2022
Hot Seat: A bold new approach at Black Sheep
Masham is the small town in the Harrogate district with a big reputation for beauty and beer.
Set in sumptuous Wensleydale, it is home to two major breweries — Theakston and Black Sheep.
The breweries, which boost the town’s economy and provide jobs, have been around so long it’s hard to imagine Masham without them. But the future at Black Sheep looked far from rosy a few years ago.
The company, which was founded by Paul Theakston in 1991 when he became the black sheep of the family by setting up a rival to the brewery created by his family in 1827, was running at a loss.
The chairman asked Charlene Lyons, who had set up her own consultancy at the age of 29 in 2007, if she would consider becoming chief executive.
Ms Lyons knew what she was getting into: her consultancy had been brought in to help Black Sheep in 2016 and she had joined the board in 2018. She says:
Charlene Lyons
For Newcastle-born Ms Lyons, it was an appealing new challenge.
The daughter of a market trader, she grew up fiercely determined to be a successful businesswoman. She cut her teeth as a fashion buyer for Marks & Spencer in London and her career was flying but her dad’s sudden death when she was just 23 had a profound effect.
Gradually her mindset changed and by the time the top job at Black Sheep became available the prospect of working in the Dales appealed more than corporate city life.
Ms Lyons, who sleeps for just three or four hours a night, now enjoys the scenic commute to work from Leeds at 5.45am. She says:
Future planning
There was plenty to occupy her mind on those early morning drives when she started the job. Weeks after becoming chief executive, covid struck.
Black Sheep was quick to respond, staging regular coronavirus planning meetings from January 2020, when much of the world was laughing it off.
As the situation worsened, the company instigated a raft of measures, such as improving its online shop, securing third party packaging to reduce its reliance on one supplier and alerting supermarkets to the availability of its products. Online sales increased from about £100,000 to £800,000 during the first covid year.
Black Sheep also offered a ‘brew to you’ delivery service, which involved delivering beer to the end of people’s drives and provided a local food delivery service in Masham. A future strategy team was set up to plan for life after covid. Ms Lyons said:
Ms Lyons' bold and forward thinking approach helped the company recover at a time when covid had a devastating impact on the hospitality trade. Besides furlough, Black Sheep received no business rate freeze or grants despite the catastrophic impact of pub closures.
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The latest annual accounts, for the financial year ending March 31, 2021, revealed the company made a profit of £1m but an operating loss of £1.1m due to exceptional items, such as redundancy payments.
Considering the circumstances, this was an impressive set of results. The accounts also reveal how much covid changed the business model. They state: "Our off trade business grew its turnover from £6,864,988 to £9,547,261, our on trade turnover was decimated, reducing from £9,838,810 to £2,245,457."
The current strategy focuses on providing a direct route to market, rather than relying on third parties, and 'owning Yorkshire', which means getting its products in every pub, bar and other retail outlet selling beer in the county.
The brewery in Masham.
Black Sheep exports to 12 countries but overseas trade is a very small part of its business.
Its fresh approach to marketing is epitomised in its recent drink cask beer campaign, featuring comedian Maisie Adam, which aims to break down what Ms Lyons calls the “ridiculous stereotype” that only men aged over 55 drink cask beer.
Ms Lyons is rather tired of another cliché: that being a female chief executive in the world of beer is frowned upon.
Outside work she enjoys travel, food and wine. Being the mother of three sporty children, she also spends a lot of time driving them around.
Masham may seem a long way from corporate life but managing a team of 146 staff in such difficult time is no easy task, particularly when you throw in challenges like the cost of living crisis and rampant inflation.
But Ms Lyons looks back on the last two-and-a-half years at the helm with satisfaction.
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