Fuller, Smith & Turner PLC: major savings in energy and water

Leading UK brewery business is benefiting from Consultus energy management services including Advice & Consulting, Energy Procurement, Contract Negotiation, Cost Avoidance, Risk Management, Metering and more.

Background

A family-owned brewer listed on the London Stock Exchange, Fuller, Smith & Turner PLC, owns and operates the Griffin Brewery in West London together with 380 pubs, inns and hotels. The company produces almost 400,000 barrels of beer each year, holding an annual revenue of £392 million (2017). In a relationship that dates back to 2004 and 125 sites, Consultus today is helping Fuller’s to better support its operations and reduce costs across more than 300 sites.

Challenges

An intensive consumer of energy and water, Fuller’s diverse portfolio ranges from its Chiswick HQ—beer has been brewed at the site since the 1600s—to bars, washrooms, kitchens and bathrooms for pubs and hotels. The company previously had a five-year fixed price energy contract and wanted more flexible arrangements; this contract had become increasingly expensive. “Questionable charges had also been made for supplies, and Fuller’s was trying to validate bills internally,” says Hayley Conroy, Consultant at Consultus. The opportunity was to reduce costs and improve accuracy while providing essential utilities. Conroy says, “We introduced flexible purchasing arrangements: the Fuller’s team immediately recognised this was a far more effective and sophisticated way of purchasing.”

Solution

At contract renewal, Consultus negotiated optimal rates and conducted a bill validation audit for current and historical bills. In the years since, Consultus services have focused on Consulting, Procurement and Bill Validation across a complex portfolio, including Supplier Contract Negotiation, Account Management, Risk Management and
managing AMR (smart meter) rollout across the entire gas and electricity portfolio. “We have weekly conference calls with the appointed Data Collector and our team is consistently analysing and validating all metered and logged data,” Conroy says.

 

Outcomes

In a recent power contract renegotiation, Consultus negotiated a halving of the supplier margin, saving more than £14,000 each year with a total of £36,000 of savings. In another case, the Consultus Bill Validation team identified spurious consumption on three invoices, querying this with the Data Collector and supplier, and providing evidence when this was disputed. “With a great deal of persistence and escalation,” says Conroy, “we ultimately secured a credit of £37,000. One of the great aspects of our bill validation is access to historical profiles. This means we’re in tune with a client’s consumption, so can see anomalies quickly and act faster.”

An unidentified gas meter ‘appeared’ through bill validation leading the Consultus investigation to pursue a site visit. It was then discovered that this supply was actually feeding an adjacent non-Fuller’s site. A six-month escalation resulted in a full £18,000 refund of incorrect charges. In the same period, renegotiating a meter operator and Data Collector contract with the incumbent supplier for all AMR (smart meters) saved Fuller’s £18,500 over the contract term, while removing year-on-year RPI increases provided clear cost avoidance and financial benefits.

In terms of going ‘above and beyond’, Consultus received a call from Fuller’s: with a surveyor onsite for a new pub opening and an engineer ready to commission a gas meter, an issue had emerged with the safety regulator. “The situation was time-critical—the pub had to open. We knew the right people to call,’’ Conroy says.” In a little over two hours, the National Grid visited, the meter was calibrated and the engineer could proceed.

With the UK water market now fully deregulated, Consultus also carried out a full supplier tender then negotiated a 12-month fixed price contract that delivered an annual saving of almost £45,000. “The self-supply approach makes sense for Fuller’s—and we have the expertise and experience to make it happen,” adds Hayley Conroy.

 

“Consultus provides Fuller’s with an extremely focused and efficient service: the team has excellent industry knowledge and is proactive. We do expect the highest levels of support and that is what we get from Consultus.”

Fuller, Smith & Turner PLC, Estates & Purchasing Manager Fran Howell

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