{"id":2544,"date":"2022-03-24T19:13:08","date_gmt":"2022-03-24T19:13:08","guid":{"rendered":"https:\/\/londondrinker.camra.org.uk\/wordpress\/?p=2544"},"modified":"2022-03-31T09:08:37","modified_gmt":"2022-03-31T09:08:37","slug":"trade-news-march-2022","status":"publish","type":"post","link":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/2022\/03\/24\/trade-news-march-2022\/","title":{"rendered":"Trade News – March 2022"},"content":{"rendered":"\n
NEW<\/strong> PUB<\/strong> OPERATING<\/strong> CONTRACTS<\/strong><\/h5>\n\n\n\n

I have previously mentioned the new pub management operation being introduced by Stonegate\u2019s Craft Union Pub Co. It looks as if the trend is spreading.<\/p>\n\n\n\n

The Marston\u2019s Pub Company have been running trials of a new pub management operation. Under a scheme called Pillar, instead of the usual landlord and tenant arrangement, the publican does not pay rent but shares the turnover from food and drink sales with the pubco on an agreed percentage basis. The percentage is negotiable, depending on the how the pub trades, with the company expecting a higher percentage of the income from food, where provided, than for drink. The company will retain responsibility for fixtures and fittings, as well as internal and external maintenance. There are 20 pubs in the pilot exercise, with a further 40 pubs due to be added during 2022. The project is being run by Marston\u2019s head of operations, John Green, who told the Morning Advertiser<\/em>, \u201cWe have looked very closely at the market, other sectors and at competitors, <\/em>flexibility is becoming a deciding factor in so many areas of our lives and Pillar gives that. Pillar will provide partners with the stability to innovate, think differently and become totally guest centric in their business plans, not thinking about the <\/em>rent bill every quarter as their priority. This is turning that <\/em>model on its head<\/em>.\u201d<\/p>\n\n\n\n

Greene King\u2019s Pub Partnership division (GKPP) are doing something similar with their Hive Pubs project, described as \u2018a branded community pub model\u2019. The publican, who has to pay \u00a35,000 to join the scheme, will receive a management fee of \u00a320,000 per annum, topped up with a percentage of the weekly sales and performance bonuses. GKPP retain the responsibility for the pub\u2019s running costs and supplying the stock. When it joins the scheme, each pub will be eligible for \u00a3300,000 funding for interior and exterior refurbishment. The managing director of GKPP, Wayne Shurvinton, told the Morning Advertiser<\/em>, \u201cWe\u2019ve created an exciting partnership where the franchisee can bring their individual know-how of the local community to a branded pub concept and deliver the best local experience. This is a new format where the franchisee gets an invested ready-to-go pub with a lower risk <\/em>from inception and going forward. It\u2019s a model where we <\/em>want our franchisees to feel part of something bigger, with <\/em>the collaborative relationship with our talented team <\/em>supporting them and backed by the scale of Greene King<\/em>.\u201d<\/p>\n\n\n\n

YOUNG\u2019S NEWS<\/strong><\/p>\n\n\n\n

Young\u2019s will see a change at the top at their AGM on 5 July. After 20 years with the company, the last six as chief executive, Patrick Dardis is standing down. He will be replaced by the current chief operating officer, Simon Dodd. Mr Dardis will stay on the board to oversee the handover until September and be available for consultation until he retires in March 2023. This is understood to be a planned succession. There is no doubt that Mr Dardis has been at the forefront of making Young\u2019s the company that it is today; in their words, an operator of premium managed pubs. This has including the acquisition of a large number of pubs, offset by the disposal of their tenanted estate. Not everyone might like the path that has been taken but the company has been consistently commercially successful and has survived Covid in good shape.<\/p>\n\n\n\n

In February, Young\u2019s added to their estate in the Cotwolds by acquiring six pubs in Gloucestershire from the Lucky Onion chain, owned by Julian Dunkerton, who also owns the cider brand.<\/p>\n\n\n\n

The redevelopment work at the Grade II-listed Spread Eagle in Wandsworth (SW18 2PT) has been completed and the pub duly reopened in mid-March. The extended pub now includes hotel rooms and office space that will be used by Young\u2019s as their head office.<\/p>\n\n\n\n

WETHERSPOON\u2019S NEWS<\/strong><\/p>\n\n\n\n

As reported in the Pub News column, JDW have ceased trading at two pubs in Croydon. In both cases it appears that the company has decided to withdraw from leased pubs, presumably to reduce expenditure on rent payments. For the half-year ended 16 January, JDW\u2019s total sales fell by 13.3% when compared to 2020.<\/p>\n\n\n\n

The Barking Dog, next to Barking station (IG11 8TU), was scheduled to close at the end of March. In this case however, the site is being demolished for redevelopment and it is reported that a replacement pub will be included in the replacement building.<\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Over the years, I have heard many opinions expressed about JDW staff, not least their rate of turnover. The company have however been trying to do something about this. Since their share option scheme started in 1998, staff have been granted some 20.6 million shares in the company, which is around 16% of the total issue. Only 4% went to staff at board level. JDW have eleven employees who have been with the company for more than 30 years, 326 who have worked for them for more than 20 years and 3,046 for over ten years.<\/p>\n\n\n\n

SHEP\u2019S NEWS<\/strong><\/p>\n\n\n\n

Shepherd Neame of Faversham, Kent, have set up a \u2018pouring rights partnership\u2019 with Bromley Football Club. Under this, Sheps will be the club\u2019s official provider of beer, cider, wines, spirits and soft drinks for the next four years. The club plays in the National League, the fifth tier of English football, and their home ground is the Hayes Lane Stadium (BR2 9EF). Cray Wanderers and Crystal Palace Women also play there.<\/p>\n\n\n\n

Having held the UK marketing, sales and distribution rights for Singha lager since 2019, Sheps have agreed with the Boon Rawd Brewery Company that they will now also brew the premium Thai lager (5% ABV) for the UK market. It will be available in both 330ml and 630ml bottles and 30 and 50 litre kegs, although 330ml cans will continue to be imported. Singha will become available in Sheps pubs.<\/p>\n\n\n\n

REDCAT<\/strong> PUB<\/strong> COMPANY<\/strong><\/p>\n\n\n\n

RedCat, managed by former Greene King chief executive Rooney Anand, has now been operating for a year. It has recently acquired a further six pubs and now has an estate of over 100 sites, including several hotels.<\/p>\n\n\n\n

One positive note is that the Grosvenor in Hanwell (W7 2DT), Grade II listed and a former CAMRA West Middlesex branch Pub of the Year, is reported to have seen a marked improvement since it was acquired by RedCat.<\/p>\n\n\n\n

LION REVIEWING THE FUTURE OF UK BREWERIES<\/strong><\/p>\n\n\n\n

Lion Little World Beverages, based in Australia but ultimately owned by Kirin Brewery of Japan, is reviewing the future of its two breweries in the UK, FourPure in Bermondsey and Magic Rock Brewing in Huddersfield. In January, the company said, \u201cWhile no decisions have been <\/em>made, we need to determine how to best set Magic Rock <\/em>and<\/em> Fourpure<\/em> up<\/em> for<\/em> success<\/em> in the coming years<\/em>.\u201d The trade press have presumed that this means that both will be put up for sale. Lion also own Little Creatures, who have a brewpub in King\u2019s Cross (N1C 4DL). It is not known what plans there might be for that.<\/p>\n\n\n\n

GUINNESS COMING TO COVENT GARDEN<\/strong><\/p>\n\n\n\n

Guinness have announced that they are to invest \u00a373 million in a microbrewery, event space, shop and restaurant in Covent Garden. The 50,000 square foot site will see brewing return to Old Brewer\u2019s Yard site near Neal Street after a gap of 300 years. It is due to open in the autumn of 2023 and will bring some 150 jobs to the area. The project has been praised by Chancellor of the Exchequer, Rishi Sunak, as a welcome post-Covid boost to London\u2019s tourism trade. The site is owned by one of London\u2019s ancient guilds, the Mercers\u2019 Company (Mercers are dealers in cloth). Their chief executive commented that the development will \u201cprovide a wonderful platform for the Mercers\u2019 Company to continue its philanthropic work, <\/em>helping to create positive change so that everyone has the chance to lead a fulfilling life<\/em>.\u201d There is, of course, already a similar business quite close by, the Porterhouse in Maiden Lane.<\/p>\n\n\n\n

Meanwhile, four companies from the multinational drinks group Diageo, Guinness\u2019s owners, have been censured by the Government\u2019s Office of the Small Business Commissioner for their poor performance in paying suppliers and have been removed from the Prompt Payment Code. The code\u2019s target is to pay 95% of invoices from small suppliers in 30 days and those from larger ones in 60 days. The four companies only managed between 33% and 42%.<\/p>\n\n\n\n

WORRYING EVENTS AT JENNINGS<\/strong><\/p>\n\n\n\n

The Carlsberg Marston\u2019s Brewing Company have announced that the shop at the Jennings Brewery in Cockermouth, Cumbria, will not be reopened after lockdown and that brewery tours have been discontinued. It is understood that the shop staff and tour guides have lost their jobs. It seems an odd decision to close a prime attraction in a tourist area but, curiously, a spokesperson for CMBC told the local paper, the Times & Star<\/em>, \u201cwe have reviewed our <\/em>brewery shops and as the Jennings beer shop was largely reliant on brewery tours, we have decided not reopen it<\/em>.\u201d It is hard not to ask if this is the thin end of the wedge for some of the company\u2019s smaller operations such as the Eagle Brewery in Bedford, the Ringwood Brewery in Hampshire and the Wychwood Brewery in Oxfordshire. London Fields is already up for sale.<\/p>\n\n\n\n

The article also mentioned something that I didn\u2019t know; since 2017 Newcastle Brown Ale has been brewed at the Heineken Brewery in Zoeterwoude in the Netherlands.<\/p>\n","protected":false},"excerpt":{"rendered":"

NEW PUB OPERATING CONTRACTS I have previously mentioned the new pub management operation being introduced by Stonegate\u2019s Craft Union Pub Co. It looks as if the trend is spreading. The… <\/p>\n","protected":false},"author":1,"featured_media":2546,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-2544","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/wp-json\/wp\/v2\/posts\/2544","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/wp-json\/wp\/v2\/comments?post=2544"}],"version-history":[{"count":2,"href":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/wp-json\/wp\/v2\/posts\/2544\/revisions"}],"predecessor-version":[{"id":2547,"href":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/wp-json\/wp\/v2\/posts\/2544\/revisions\/2547"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/wp-json\/wp\/v2\/media\/2546"}],"wp:attachment":[{"href":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/wp-json\/wp\/v2\/media?parent=2544"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/wp-json\/wp\/v2\/categories?post=2544"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/wp-json\/wp\/v2\/tags?post=2544"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}