FULLER’S NEWS
For the year ended 26 March, Fuller’s declared a profit before tax of £7.2 million, as compared to a loss of £48.7 million in 2021. At the same time, the company made capital investments of £26 million in its pub and hotel estate. Simon Emeny, the chief executive, said, “During the year, we have returned to profitable growth with revenues of £253.8 million and adjusted profit before tax of £7.2 million. It is testament to the dedication and resilience of our team, across the business, that we have managed to trade profitability under such difficult circumstances.” The company had also taken the opportunity to improve its systems and procedures. Mr Emeny was also optimistic as regards trade in the capital gradually returning and the impact that this has had on the company’s sales. He ended, “The great British pub has always been, and will always be, an affordable treat and has proved its resilience over time with its position at the very heart of the communities we serve. With an amazing team of people, great pubs and a clear strategy, we look forward to the future with confidence and excitement.”
Fuller’s have acquired a leasehold site landside at Terminal 2 (The Queen’s Terminal) at Heathrow airport. It will be called the Queen’s Arms, and will open in early August.
Pubs across the Fuller’s estate have raised over £10,000 for Ukraine relied charities. Fuller’s are matching the amounts raised locally by staff and customers through events such as quizzes.
YOUNG & CO NEWS
At their AGM on 5 July, it was reported that Young’s had started the current financial year well, with sales up nearly 35% on the same period last year. The company is looking to benefit from the nine pubs and hotels that it acquired last year. Chairman Stephen Goodyear added, “We will also see the full-year benefit from our major investments last year into our existing estate. These include the Grand Junction Arms (Harlesden), completed in January, the Spread Eagle (Wandsworth), reopened in March with an additional 21 bedrooms and the Phoenix (Victoria), reopened in late May of this year.” He also commented, “The board feels Young’s is well placed to manage the impact of the current inflationary environment on our cost base but are very mindful of the potential impact that the inflationary environment could have on consumer sentiment and, ultimately, spending in our pubs. We will continue to invest in the future growth of the business, sticking to our strategy of running premium, differentiated and well-invested pubs and hotels. The strength of our balance sheet leaves us well-placed to make further investments and generate good returns for the long term.”
CONCERN ABOUT HOP PRICES
The price of barley is giving cause for concern but there are similar issues affecting the English hop market. The British Hop Association is asking brewers to review previously agreed prices for the 2022 crop as increases in wages (15%), energy (100%) and fertiliser costs are affecting the industry’s viability. Even the string that holds the hops to the poles has increased in price. They want what they regard as a fair price; one that covers the costs of production. During the pandemic, the growers helped hop merchants and brewers by reducing their output to avoid the production of surplus hops, despite having contracts for their full acreages. Richard Phillips, chairman of well-known hop producers Charles Faram Farms, said, “Growers have worked very hard in the last two years during Covid to protect their customers from having to purchase unwanted hops. Now is the time that we need those same customers to pay a fair price for British hops. After all, many brewers are paying £20 to £30 per kilogram for imported hops which often travel from the other side of the world. British hops are highly affordable and cut carbon emissions due to the low distance they have travelled.”
KICKING HORSE PUT PUBS UP FOR SALE
At the end of May, the property management company Kicking Horse 3 Ltd put a package of five pubs on the market. Two of these are in London, the Grade II-listed Warrington Hotel in Maida Vale (W9 1EH) and the Sir Richard Steele in Haverstock Hill (NW3 4RL). A third, the Dartmouth Arms in Dartmouth Park (NW5 1SP), is being marketed as an ‘investment opportunity’. The decision to sell follows changes in the company’s management team. The pubs are currently operated under a management contract by Ewe Hospitality.
MARSTON’S CONTEMPLATING PUB SALES
In May, Marston’s reported that, for the half-year ended 2 April, its sales were back up to 97% of 2019 levels. All the same, they may be selling pubs. A spokesperson said, “As you would expect, we review our estate from time to time as part of the normal course of business. We are potentially looking to dispose of a small package of non-core pubs which no longer satisfy our pub strategy. In the event of a successful transaction, any disposal proceeds raised will be used to further reduce the company’s debt in line with our stated strategy. A further announcement will be made as appropriate.”
BRAINS SELL PUBS
Marston’s currently operate 156 Brains pubs under either leases or management contract arrangements. Brains have now sold 95 pubs, more or less their remaining estate, to an investment firm called Song Capital Partners. The sale includes both freehold and leasehold sites. Brains hope that the funds raised will enable them to continue brewing at their new Dragon Brewery in Cardiff Bay.
COMINGS AND GOINGS AT ADMIRAL TAVERNS
As required by the Competition and Markets Authority (CMA), following their acquisition of the Hawthorn pub group, Admiral have sold seven pubs to FB Taverns. None are in London. They will all remain pubs. Around the same time, the C&C Group, producers of Magners and Tennents, sold their shareholding in Admiral (acquired in 2017) for £55 million. The purchasers were Proprium Capital Partners who helped fund Admiral’s purchase of Hawthorn. The sale includes a supply deal for C&C to continue supplying its products to Admiral’s pubs.
STONEGATE TO SELL PUBS?
It was reported on the Hospitality and Catering News website on 3 July that Stonegate had briefed two corporate finance companies to arrange the sale of 75 pubs, all said to be free-of-tie houses in London and the south east. Given that Stonegate own around 4,500 pubs, this is not significant in itself but it is interesting that they are all free-of-tie and therefore, presumably, tenanted.
PUNCH EYE AMBER TAVERNS
Punch Pubs are looking to expand further by acquiring Blackpool based Amber Taverns, which is being sold by auction. Punch are owned by the USA based Fortress Investment Group who, presumably, would be providing the funds. Punch are reported to have bid £200 million but face competition from the likes of Heineken and Admiral Taverns. Amber have some 160 pubs spread across the north of England, Wales and the Midlands.
CARLSBERG REPLACE GLASS
Multi-national brewers Carlsberg have announced that they are conducting trials in eight countries, including the UK, using bottles made from wood based fibre. This is the outcome of seven years of development. The bottles will be lined with a plant based polymer called furanoate. Carlsberg claim that they are as good as glass as regards ‘taste and fizziness’ and have the ability to keep beer colder for longer. I’m not sure if this will count as ‘beer from the wood’ though.
. . . AND FINALLY
My thanks to my good friend Martin Butler for spotting this in the ProBrewer Beverage Industry Weekly Summary from the USA. The Adroit Theory Brewing Company from Purcellville, Virginia, has been criticised for releasing a so called ‘Murder Box’, containing four beers, each named after a serial killer. Weird.