ADMIRAL PURCHASE FROM MARSTON’S AGREED
The acquisition of 137 pubs from Marston’s for £44.9 million has been agreed by the board of Admiral Taverns. This takes their estate over the 1,000 mark. It is made up of a mixture of tenanted, leased and retail-agreement sites across England and Wales. The Chief Executive of Admiral, Chris Jowsey told the Morning Advertiser, “On behalf of the entire team here at Admiral, I am delighted to be able to officially welcome our new licensees and colleagues into the business. We are firm champions of the leased and tenanted model, and through this latest acquisition have been able to acquire an excellent portfolio of pubs, for which we are confident we can unlock new growth opportunities through our award-winning and highly supportive approach. Our integration programme is well under way and we look forward to developing these new working partnerships.” Given what I report in our PCA Update (see page 28), I can imagine that the tenants involved will also be happy.
FULLER’S (PUBS)
In the 26 weeks ended 28 September, Fuller’s saw revenue increase by 6% to £174.8 million. Like for like sales in their managed sector grew 2.7% and by 3% for tenanted pubs. This indicates a potential profit of £17.9 million and, of course, they are sitting on their £164.5 million profit from the sale of the brewery and beer business. £69 million has already been returned to shareholders. The transition arrangement between Fuller’s and Asahi should be completed in May and a long term supply contract has already been agreed. Chief Executive Simon Emeny commented, “The first half of this year has seen the biggest transformation in Fuller’s history. It has been a time of unprecedented change and not without its challenges but we have made good progress and we have a clear view and plan for the next steps in our journey from vertically integrated brewer and retailer to focused premium pubs and hotels business. There are plans for a second Parcel Office, this time at Liverpool Street and, in the spring, the company will be leaving the Griffin Brewery for new offices elsewhere in Chiswick.
Happily, the pub company is continuing with its pub awards, the Griffin Trophy. The overall winner was the Half Moon in Herne Hill (10 Half Moon Lane, SE24 9HU). The winning pub receives a £5,000 holiday for the manager, a staff party and an engraved plaque, as well as the trophy itself for a year. The winner of the ‘Best City/London Pub’ was the Victoria in Paddington (10A Strathearn Place, W2 2NH) while the ‘Best Town/Local Pub’ was the Prince Albert (30 Hampton Rd, TW2 5QB).
GREENE KING
GK’s XX Mild makes the occasional appearance in London. Recently there were concerns that it was being discontinued but at a recent meeting with CAMRA’s representative, GK gave an assurance that they will continue to brew it. Its availability will however be ‘demand led’, so there will be times when it is not available.
2020 sees the 1,000th anniversary of the founding of the Abbey of St Edmund by King Canute. It was the shrine of King Edmund, the original Patron Saint of England and King of East Anglia who was martyred by the Danes in 869. There will, quite rightly, be celebrations, of which GK is a major sponsor. One highlight will be a gathering of 500 Benedictine abbots from all over the world and GK’s plan is for them to be photographed each drinking a pint of Abbot. The abbey fell into ruins after it was dissolved by Henry VIII in 1539. St James’s Church, dating from 1135, then became St Edmundsbury Cathedral. The celebrations will end on St Edmund’s saint’s day, 20 November. For more information go to https://www.visit-burystedmunds.co.uk/abbey-1000.
From the sublime to the well . . . See what you think. Just before Christmas, GK launched a new pale ale called Ice Breaker (4.5% ABV). According to GK, it is a ‘refreshing, unfiltered pale ale bursting with fruity hop character which is triple hopped with Simcoe and Citra and it delivers waves of guava, passion fruit and citrus flavours’. It is available in keg and bottle. The reason that I mention it is the most extraordinary marketing stunt that GK used in the launch. They erected a five foot high igloo outside the Anchor on Bankside. People were invited to actually use it as accommodation overnight. It was equipped with sleeping bags, hand warmers, scarves and gloves and could sleep two adults. Its most remarkable feature however was that it was made of over 1,000 litres of Ice Breaker, so the occupants could taste the beer by licking the walls. GK’s managing director, Brewing & Brands, Matt Starbuck, commented, “This is the first ale igloo we’ve launched to date, and if it’s successful, we might even roll it out to our pubs up and down the country; it could be the ideal overnight stay for people who don’t fancy getting a taxi home at closing time!”
HAWTHORN LEISURE
Parent company NewRiver has acquired Bravo Inns Limited for £17.9 million. They have given the 44 wet-led pubs to their Hawthorn Leisure subsidiary to manage as a separate entity. Most of the pubs involved are in north west England. Hawthorn now has an estate of around 660 pubs, which is about a quarter of the pubs that NewRiver owns in total. Income from the Hawthorn pubs for the six months to 30 September rose to £13.6 million, a 27% increase on the previous year.
MARSTON’S
For the year ended 28 September, revenue grew by 2.9% to £1.17 million but pre-tax profits were predicted to fall by £3 million to £101 million. This will not help the company’s debt reduction programme, of which the above mentioned sale to Admiral was part. Chief executive Ralph Findlay told the Morning Advertiser, “Our principal focus remains to reduce our net debt by £200 million by 2023 – or earlier – and the measures we are taking now will result in a high quality business which is cash generative after dividends and capital expenditure.” Curiously, Marston’s have received a boost from substantially increased sales in 2019 of Young’s beer brands which they acquired when they purchased Charles Wells’ brewing operation.
WETHERSPOON’S NEWS
I’m pleased to report that following an incident when a customer who ‘didn’t appear to be disabled’ was told off by staff for using its accessible toilet, JDW have decided to support the Not Every Disability is Visible campaign being run by the charity Crohn’s & Colitis UK. According to C&CUK, as reported in the Morning Advertiser, 43% of people suffering from Crohn’s or Colitis said they felt prevented from going to pubs because they fear discrimination when trying to use the accessible toilets. JDW are installing new signs on their accessible toilets. Let’s hope that other pub operators follow suit.
Tim Martin does not own the JDW chain outright (he holds 32% of the shares) and before Christmas, he had some trouble with some other shareholders. His position as executive chairman was challenged on the grounds of corporate governance. A shareholder advisory firm, Pirc, recommended that shareholders vote against because he had been in post too long, all of the 40 years of the company’s existence to be exact, but the dispute might have had its origins in Mr Martin’s spending on ‘Brexit’ materials. He was re-elected with 98% of the vote. Mr Martin told the Morning Advertiser with characteristic bluntness, “I think common sense prevailed. Pirc were trying to uphold an academic theory that says a nine-year limit is best. But, excuse my language, it’s b******s. Experience counts and is very important. Whether you’ve been on a board for 10 years or 40 years, if the company is doing well and you’re doing your job then you shouldn’t be asked to leave just because of how long you’ve been on the board.”
The company is set to grow. Investments totalling some £200 million are planned for the next four years with new outlets opening in eight small towns and seven larger ones. Some of these will be in the Republic of Ireland and some will be hotels. No doubt there will also be some closures. The company currently operates 875 pubs and 58 hotels.
As we went to press, it was reported in the Evening Standard that JDW had obtained planning permission to turn a Grade II-listed site at 222 Strand (WC2R 1BA), described as ‘the most elegant bank in London’ into a pub. The property was built as a restaurant serving the Royal Courts of Justice, closing in 1886. It then became a Lloyds bank which closed in 2017. JDW will occupy the basement, ground and mezzanine floors while the upper floors will remain as legal offices.
YOUNG’S
The Green Man on Putney Heath (SW15 3NG) has closed for a refurbishment until April. The works include building a rear extension and new toilets. The Boathouse by the river at Putney is also being refurbished. Two other projects, Enderby House and the Spread Eagle, are mentioned in the Pub News column.
WADWORTH PLAN NEW BREWERY
Chris Welham, the Chief Executive of Wadworth & Co, says that their imposing redbrick Northgate brewery is, sadly, coming to the end of its useful life. A new-build brewery is planned to replace the existing site, which dates from 1885. The project, which will take three to four years, is only at the early planning stage and no new site has been identified yet. Wadworth will however stay in Wiltshire. Mr Welham told the Morning Advertiser that the new plant will be more flexible than the existing brewery which will ‘help the company meet changing market demands and secure the long-term development of the company’. Brewing will continue at Northgate in the meantime.
KEEPING THE ROOF ON
Further to my comments about community pubs in the News & Views column, one such, the King’s Head (The Low House) in Laxfield, Suffolk (IP13 8DW) has been granted £9,700 by the National Lottery Heritage Fund for badly-needed repairs to its thatched roof. The pub, bought by the community from Adnams in May 2018, dates from the 16th century. It is one of the country’s few remaining taprooms (there is no bar) and its interior, unchanged for around a century, is listed by CAMRA as being of national importance.
STAR PERFORMERS
The 2020 edition of the Michelin Guide lists 19 gastropubs that have been awarded Michelin stars. This is an increase of two on last year. Surprisingly, only one of these is in London: the Harwood Arms in Fulham (Walham Grove, SW6 1QP). It does serve cask ale although, understandably, the emphasis is on the food.
THAI-ED HOUSE?
On the subject of food, the Rosa’s Thai Café chain, which has 14 outlets in London, has commissioned a house beer, Rosa’s Thai PA (4.6% ABV), from the Mad Cat Brewery in Faversham, Kent. The beer, which is vegan friendly, is brewed with lemongrass and lime imported from Thailand. It will make a change from the usual offerings such as Cobra or Tiger.
BREWDOG OPEN IN IRELAND
BrewDog have opened their first outlet in Ireland, located in Dublin’s south docklands area. It is a large red building with porthole-style windows resembling a ship, costing €1.6 million.
REAL ALE WAY
This is a micropub which opened in Hayes in July 2018. I missed it at the time. The same people have now opened a second outlet, this time in Westerham. Beers are usually sourced from Kent breweries, although there will be the odd guest. They also stock wines and gins from the Garden of England.
Compiled by Tony Hedger