{"id":4821,"date":"2024-09-23T19:18:49","date_gmt":"2024-09-23T19:18:49","guid":{"rendered":"https:\/\/londondrinker.camra.org.uk\/wordpress\/?p=4821"},"modified":"2024-09-24T16:31:11","modified_gmt":"2024-09-24T16:31:11","slug":"trade-news-september-2024","status":"publish","type":"post","link":"https:\/\/londondrinker.camra.org.uk\/wordpress\/index.php\/2024\/09\/23\/trade-news-september-2024\/","title":{"rendered":"Trade News – September 2024"},"content":{"rendered":"\n

Clarification<\/strong>
In the printed article in the last edition (page 34) about Marston\u2019s sale of their holding in Carlsberg Marstons Brewing Company (CMBC) I gave the value as \u00a3206,000. That, as I\u2019m sure readers realised, was a typo. It was \u00a3206 million. Apologies for that. Also, I ought to make it clear that the Eagle Brewery in Bedford remains open, CMBC having sold it to Spain\u2019s Estrella Damm as a going concern before this event. I have not however seen any reports as to what will happen to the Jennings, Ringwood and Wychwood sites. Presumably they will be put up for development.<\/p>\n\n\n\n

While on the subject, the 29 August edition of the Express & Star (Wolverhampton) reported that CMBC made a loss of \u00a325.2 million in their 2023 financial year, despite an increase in turnover to \u00a3908 million. The profit for 2022 was \u00a37.1 million on turnover of \u00a3775 million.<\/p>\n\n\n\n

Antic pubs<\/strong><\/p>\n\n\n\n

The deadline for bids for the purchase of the 13 pubs whose owning companies went into administration in July was 20 August. It was reported in the Propel Newsletter that the administrators received some 65 inquiries. This was reduced to a shortlist of three: Portobello Pubs, Urban Pubs & Bars and an unnamed restaurant group. The outcome was announced on 30 August, with Urban Pubs & Bars acquiring 11 sites, made up of eight leasehold pubs that are currently trading plus three vacant freehold sites. Happily, around 150 pub staff will transfer to the new owners. The administrators reported that, as they had expected, all of the pubs had continued to trade well. The pubs currently trading which are not included in the deal are: Coopers<\/a><\/strong>, the Dogstar<\/a><\/strong>, Graveney & Meadow<\/a><\/strong>, Gremio de Brixton<\/a><\/strong> and the Tooting Tram & Social<\/a><\/strong>. The administrators are currently in active discussions with potential buyers for all five. Together with other new acquisitions (see the SE22 item below), UPB now operate 52 pubs.<\/p>\n\n\n\n

Portobello festival<\/strong><\/p>\n\n\n\n

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Having mentioned the Portobello Pub Company, readers may wish to note that they are holding a beer festival at the Catford Bridge Tavern<\/a><\/strong> from 17 to 20 October. They will have a range of beers available, mainly from London breweries. See the advert below:-<\/p>\n\n\n

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Stonegate refinancing<\/strong><\/p>\n\n\n\n

Stonegate are the country\u2019s largest pub operating business with around 4,800 pubs. As the last edition went to print, it was announced that they had completed the refinancing of their corporate debt (estimated to be around \u00a33 billion) which was mostly incurred when they purchased the Ei Group. Not only have they reduced their debt servicing costs but they will also have around \u00a3300 million to invest in the business over the coming three years. The main source of the funds was Stonegate\u2019s long term backers, the private equity firm TDR Capital. Stonegate\u2019s recent trading results have been promising with overall profit up 7.7% in the first half of the current financial year, led by their Craft Union outlets with profits of 21.5%.<\/p>\n\n\n\n

Fuller\u2019s news<\/strong><\/p>\n\n\n\n

The pub company have acquired the Lovely Pubs chain which had seven pubs in Warwickshire, six of them freehold. The price was quoted as being \u00a322.5 million. They are located in what was described as \u2018affluent commuter locations\u2019 in Warwickshire. At least one of them, the Baraset Barn<\/a><\/strong> in Alveston, has letting rooms. Simon Emeny, Fuller\u2019s chief executive, told the Propel Newsletter, \u201cI am absolutely delighted to be announcing this news today. We are very careful when it comes to finding great sites to add to our iconic pub estate and the Lovely Pubs business is a perfect match and a fantastic acquisition.\u201d
Meanwhile, on the beer front, Asahi are the latest to cash in on the 3.4% ABV duty concession by reducing the strength of Dark Star Hophead from 3.8% ABV. Presumably this was done with the consent of the pub company.<\/p>\n\n\n\n

Young\u2019s news<\/strong><\/p>\n\n\n\n

At their AGM on 25 July, it was reported that a \u2018strong trading momentum continues\u2019, with like-for-like sales up by 3.4% over the first 16 weeks of their new financial year. Chairman Stephen Goodyear reported that the integration of the pubs acquired from the City Pub Group is progressing as planned. This was Mr Goodyear\u2019s final AGM. He is retiring after 50 years in the pub trade, 30 of them at Young\u2019s. His successor is Steve Cooke, previously a non-executive director who joined the board last November. Mr Cooke was previously a partner with the law firm Slaughter and May.<\/p>\n\n\n\n

It was confirmed at the AGM that the Young\u2019s brand beers are currently being brewed by Carlsberg at the former Banks\u2019s brewery in Wolverhampton. It was also confirmed that there is no restriction on Young\u2019s pubs stocking London Drinker. Young\u2019s continue to add to their estate. In Farnham, Surrey, they are converting a former bank in Castle Street into a pub with nine \u2018boutique\u2019 letting rooms. It will be called the Teller\u2019s Arms and is scheduled to open in October. Chief executive Simon Dodd told the Propel Newsletter (30 August) that Young\u2019s could grow to 350 sites over the next three to five years, expanding in areas such as Cambridge and Bath. Mr Dodd also made an interesting reference to dynamic pricing with AI.<\/p>\n\n\n\n

Wetherspoon\u2019s news<\/strong><\/p>\n\n\n\n

JDW chairman, Sir Tim Martin, has complained about the Daily Mail (9 August) misreporting the company\u2019s financial situation. In an article about the Revolution Bars Group closing 25 outlets as part of a restructuring plan, it was suggested that JDW\u2019s recent pub closures were for the same reason. Sir Tim made it clear that they were not and commented, \u201cRather perplexingly, the Daily Mail made similar, inaccurate comments about Wetherspoon almost exactly a year ago. It\u2019s very important, where financial matters are concerned, for newspapers to avoid creating patently misleading information.\u201d The most recent financial report said that, up to 7 July 2024, JDW\u2019s like-for-like sales over the year increased by 7.7%.<\/p>\n\n\n\n

Meanwhile, Sir Tim attracted some personal attention when he sold 1,361 million shares in the company, netting him \u00a39.58 million. This has reduced his holding in the company to just short of 25%. The next largest shareholder however only owns just over 6% of the shares, so Sir Tim remains in a dominant position. The deal caused the share value to fall to \u00a37.30. If anyone is interested in Sir Tim as a subject, I recommend the profile of him that appeared in the Observer on 4 August.<\/p>\n\n\n\n

I reported previously that in April JDW changed their mind about selling the Grape & Grain<\/a><\/strong> site in Crystal Palace and would be developing it after all. Alas, in August, they changed their minds again and the site is once again up for sale for \u00a31.5 million plus VAT. It appears to be being marketed as a pub but there is always a danger that it might qualify as a \u2018grey belt\u2019 site. The London & Rye<\/a><\/strong> in Catford closed on Sunday 25 August. It is understood that it will reopen shortly under a new operator but no details are yet known. The Moon & Stars<\/a><\/strong> in Romford, originally scheduled to reopen after refurbishment on 30 July, will now reopen on 22 October.<\/p>\n\n\n

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The Lion & Unicorn opened at the beginning of September.<\/figcaption><\/figure>\n<\/div>\n\n\n

Heartwood Collection grows<\/strong><\/p>\n\n\n\n

The Heartwood Collection (formally White Brasserie), who are backed by the private equity firm Alchemy Partners, has acquired the historic Woodman<\/a><\/strong> in Palmers Green from Marston\u2019s. The pub, originally a pair of cottages dating from 1727, will be subject to a \u2018multi-million\u2019 pound refurbishment and is due to reopen next summer. Heartwood have also acquired sites in Marlow, Buckinghamshire, and Stratford on Avon, from Whitbread. These will also receive substantial refurbishment. The company is aiming to have at least 60 outlets by 2027.<\/p>\n\n\n

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The Woodman in 2015<\/figcaption><\/figure>\n<\/div>\n\n\n

Changes in SE22<\/strong><\/p>\n\n\n\n

South London pub operators Parched Pubs have added a seventh site to their portfolio with the purchase of the Clock House Tavern<\/a><\/strong> in Peckham Rye from Young\u2019s. It was due to reopen after refurbishment on 19 September. Nearby, Urban Pubs & Bars have taken over the Herne Tavern<\/a><\/strong> (a Punch Partnerships freehold). This pub is rated three stars on CAMRA\u2019s register of historic pub interiors, with features dating from a distinctive 1930’s refurbishment that is very largely intact.<\/p>\n\n\n\n

RedCat refinancing<\/strong><\/p>\n\n\n\n

Another pub company refinancing, although this time at a more modest \u00a361 million. RedCat, whose chairman is the former Greene King CEO Rooney Anand, is backed by the private equity firm Oaktree Capital Management. They have contributed some of the funds, along with Barclays Bank. The company reported a pre-tax loss of \u00a331 million for the year ended 3 April 2024. It disposed of seven of its smaller pubs during the year, leaving it with an estate of 114. Readers may recall that a subsidiary company, RedCat Leased Pubs Limited, was put into administration in March. The company operated ten sites, some in London. The administrators have reported that the company\u2019s debts amounted to \u00a39.3 million.<\/p>\n\n\n\n

Holts join the hotel business<\/strong>
In a reflection of the current pub trade, Manchester\u2019s Joseph Holt, renowned as a traditional brewer and pub operator, has followed the likes of Fuller\u2019s and Young\u2019s into the hotel business. The director of their new \u2018Hotels by Holts\u2019 brand, Andrew Kershaw, explained, \u201cSeveral of our pubs already had rooms but we are now bringing them all together under the Hotels by Holts banner, as a separate brand within Joseph Holt. The hospitality trade is changing, and budget-conscious travellers still want something that feels intimate or more personalised, which is exactly what our pubs have always offered. It also means guests can enjoy the activities, groups or events taking place at the pub<\/em>.\u201d A number of pubs are being refurbished accordingly.<\/p>\n","protected":false},"excerpt":{"rendered":"

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