December 2009 bar enewsletter www.barmagazine.co.uk A round-up of some of this week’s industry news. IPBartenders’ Ben Reed joins BBFB Ben Reed (pictured), a director of bar consultancy IPBartenders, has joined Bacardi Brown-Forman Brands’ training team to work on key projects around the UK involving the company’s spirits. He will work alongside other high-profile team members such as Alex Turner, Ian McLaren, Ben Carlotto and Jamie Somerscales. Reed will work across the portfolio including Bacardi, Jack Daniel’s, Grey Goose, Woodford Reserve, Bombay Sapphire and Martini. Whitbread reports strong performance Whitbread has today reported that its pub-restaurants are performing “robustly” and that Costa Coffee was “outstanding” and “particularly strong” in the nine months to November 26. The group said that trade overall was improving, with the pub-restaurants achieving like-for-like sales of two per cent over the pe riod. Rum Fest part of London Cocktail Week The annual Rum Fest in London is to take place slightly earlier next year when it becomes part of the new London Cocktail Week, which runs from October 11 to 17. Launched by Ian Burrell and IPBartenders in 2007, the consumer and trade show is now being talked about as the Rum & Cane Spirit Festival, reflecting the growing presence of sugar cane spirit cachaça in the UK. London Cocktail Week, co-ordinated by Diffords Guide, will feature pop-up cocktail bars, seminars, training sessions and other shows including The Restaurant Show, which takes place from October 11 to 13 at Earls Court Two. Diffords Guide is hoping that bars and venues across London will organise their own events. Global rise in Scotch whisky exports More than 807million bottles of Scotch whisky were exported during the first nine months of 2009, representing a 1.5 per cent rise in global shipments compared to 2008, according to the Scotch Whisky Association. The value of these exports was down by 3.5 per cent on the previous industry record in 2008, reaching £2.11billion. However, this was still the industry’s second-best export value performance for a nine-month period. Ad campaign launched for Tia Maria A major Christmas advertising campaign has been launched by First Drinks for Tia Maria. It will be the first TV ad campaign for Tia Maria for six years, with a budget of £1million. Under the title of “Mix It”, it drives the key messages of the liqueur’s mixability and versatility to consumers, featuring both men and women drinking the liqueur in a variety of ways. Chancellor rejects call for duty cut Chancellor Alistair Darling ignored calls last week for beer duty to be reduced when VAT returns to 17.5 per cent on January 1. In his Pre-Budget Report, he indicated that duty would remain unchanged despite the fact that duty was increased when VAT was temporarily cut to 15 per cent. The British Beer & Pub Associa tion (BBPA) has estimated that beer prices will increase by 6p per pint because of VAT returning to 17.5 per cent. The beer duty accelerator is also expected to see an increase in duty at the rate of two per cent above the rate of inflation in March. A study by Oxford Economics for the BBPA has found that the government makes fives times as much on the sale of a pint of beer than the brewer or the owner of the bar or pub, taking into account VAT, duties, employment contributions and taxes from profits. Irish government cuts beer duty In Ireland, the government last week announced duty cuts of 12 per cent on a pint of beer and cider, 14 per cent on a half-glass of spirits and 60 cent on a standard bottle of wine. It was made in response to the rise in cross-border shopping from people stocking up on cheaper alcohol in Northern Ireland. Carluccio’s “robust” despite profit drop Carluccio’s, the 45-strong restaurant group, has reported that adjusted pre-tax profits for the year to September 27 were down 16 per cent to £4.7million but added that it had performed “robustly” in a difficult market. Turnover was up by over seven per cent to £69million on the back of expansion. The group added that it was debt free and ended its financial year with a cash balance of £3.1million. Elliott retires from Greene King David Elliott is to retire from his role as managing director of Greene King’s leased and tenanted division after being with the company for 11 years. During his time, the portfolio has grown from 620 sites to more than 1,300. He will be replaced from February 1 by Simon Longbottom, who was formerly at Mitchells & Butlers and most recently managing director of Gala Coral’s bingo and casino arm. Turner retires from Fuller’s Tim Turner is to retire from his board-level role of commercial director at London brewer and operator Fuller, Smith & Turner in March after more than 30 years at the company. Last week, Fuller� �s also promoted sales and personnel director Richard Fuller to the board last week. He joined the business in 1984 and became divisional director with responsibility for sales in 1992. He has taken on responsibility for PR, which was previously overseen by Beer Company managing director John Roberts, and will take over responsibility for external affairs on Tim Turner’s retirement. Licensees protest over pubcos Angry licensees demonstrated outside the House of Commons last week as part of a protest against the pubco model. Although hundreds of people were expected, only 26 turned out in the wind and the rain. Pubs ‘n’ Bars goes into administration Pubs ‘n’ Bars, which operates 87 community pubs in London and the south-east, has gone into administration after its banks, led by AIlied Irish Bank (AIB), refused to provide the company with further backing. Adminstrators David Thurgood, Trevor O’Sullivan and Nick Wood of Grant Thornton were last week running the bu siness, warning that they might have to close some of the pubs. Council officers warn over live music Nine out of 10 council licensing officers believe that a relaxation of the law around live music would lead to more noise complaints, according to a survey carried out by the Local Government Association. It followed government proposals to allow a licence exemption for venues with a capacity of 100 or fewer people. But the number who thought the changes would lead to a rise in threats to public safety and an increase in crime and disorder was less than three per cent. New on-trade team at Pernod Ricard UK Pernod Ricard UK has confirmed a shake-up of its management team in charge of the on-trade. Former business unit controller Nick Yates has been named channel director for on-trade spirits after 11 years of commercial experience at the company. He will report directly to the recently appointed commercial director for spirits, Simon van Moppes. Lee James has been appointed channel director for wines, including champagne, across the on-trade as well as convenience, specialist and wholesale cash and carry. Chris Ellis remains as channel director for off-trade spirits, but his responsibility has extended to wholesale cash and carry. BarBands formed for bar entertainment A new company has been formed by a team from the bar, pub and club sector to provide affordable quality live entertainment and marketing support to venues. BarBands aims to help with the use of live music and entertainment and to improve bar spend and footfall. Sales director Elliot Shand has been a bar manager and promoter in venues such as Notting Hill Arts Club, The 100 Club and the Marquee Club and managing director Ed Hartridge was previously in business development at Whyte & Mackay and as a bar manager for restaurant group Smith & Western.

November 2009 bar enewsletter In the news...bar magazine A round-up of some of this week’s industry news.

BAr

November 2009 bar enewsletter Advertise on the Bar eNewsletter. RCapital buys 28 bars and nightclubs Investment company RCapital, which is turning around restaurant chain Little Chef, has acquired 28 bars and nightclubs from 3D Entertainment Group through a company voluntary agreement (CVA). The venues are managed by Scottish nightclub operator Helena Leisure, which runs clubs in Scotland and the north of England. The deal has saved 28 bars and nightclubs, along with 340 jobs. RCapital invested £800,000 in exchange for 26 per cent of the equity. Luminar Group is a major shareholder in 3D Entertainment.

 

A round-up of industry news from Bar magazine

Sales of draugh cider in the on-trade have risen by five per cent this year Improvements at Marston’s after profits drop
Annual profits at Marston’s, the brewer and pub and bar operator, dropped by 13.5 per cent to £70.3million, but the group said there had been signs of improvement in the past few weeks. Group revenue fell by three per cent to £645.1million, but its brewing business increased revenue by 13.2 per cent to £101.5million and underlying operating profit by 3.9 per cent to £16million. The managed bars and pubs division, Inns & Taverns , which includes Pitcher & Piano
and Que Pasa, reported a 3.6 per cent drop in revenue to £367.8million, but Marston’s said this was mainly due to the transfer of 47 smaller pubs to Marston’s Pub Company last year. Underlying operating profit was down 6.5 per cent to £60.3million but the average profit per pub rose from £117,000 to £120,000. Chief executive Ralph Findlay said: "This was a creditable performance in a very challenging period.  In addition, the improvement in trading we experienced over the second half-year has continued in recent weeks, and we have made an encouraging start to the new financial year.”


London pubs close at rate of 11 a week
Each week, 11 pubs are closing down in London, according to new data published last week by the British Beer and Pub Association. A regional survey found that there were 281 closures in the first half of 2009 in the capital. In the south-east, there were eight closures a week, in East Anglia it was at four s week and in the south-west there were three a week. The figures were based on research by CGA Strategy which found that more than 50 pubs close each week nationwide. It follows the BBPA’s launch of a new campaign under the banner of “I'm backing the pub”.

New ad campaign for Jack Daniel’s
Bacardi-Brown Forman has launched a major Christmas marketing and advertising campaign for Jack Daniel’s focusing on its Tennessee heritage. It includes television, national cinema advertising, consumer press activity and outdoor advertising. A mailing is also going out to over 140, 000 consumers who are “Friends of Jack” with a free 2010 desktop calendar.

Greene King grows profits and estate
Greene King has announced that pre-tax profits were up 2.8 per cent to £62.4million for the six months to October 18, while revenue has risen by 4.3 per cent to £464.5million. There was strong performance for its Scotland-based business Belhaven, which reported a nine per cent growth in profits. Greene King Pub Partners, the leased side of the business, reported “improving performance trends”. Greene King is also buying seven pubs in Scotland from Mitchells & Butlers for £12.7million this week, funded by a rights issue. They will be managed by Belhaven.

New chairman for troubled M&B board
Mitchells & Butlers has appointed Simon Laffin, a former finance director at Safeway, as its new chairman in the midst of a boardroom power struggle involving its major shareholders. It follow s reports that Joe Lewis, whose investment vehicle Piedmont Inc owns a 23 per cent stake in the group, blocked Laffin’s appointment as a replacement for departing chairman Drummond Hall.
Read more >>

More bars checking customers’ ID
Bars and pubs have improved their record on asking customers to show an ID to prove their age, according to data from test-purchasing firm Serve Legal. In the first 10 months of this year, Serve Legal’s team of 18- and 19-year-olds were asked to prove their age in 69 per cent of visits, compared with 54 per cent in 2008. Scottish licensees performed best, with a 76 per cent pass rate compared with 68 per cent last year. The worst performing regions were the Midlands and Northern Ireland, bot h at 63 per cent.

Shares in Pubs n Bars suspended
Shares in AIM-listed Pubs n Bars were suspended on Friday “pending clarification of the group’s financial position”. The firm operates about 100 local pubs, of which 66 are managed and 32 are tenanted. In a trading statement last month, the firm issued a statement warning of “difficult trading conditions and a lack of supplier credit”.

High-strength beer banned by Portman Group
The Portman Group has ordered a ban on the sale of BrewDog’s new high-strength beer, Tokyo, in bars, pubs and shops following complaints that a message on the label encouraged excessive drinking. Its Independent Complaints Panel ruled that the 18 per cent ABV beer broke the Code which sets minimum mandatory standards for drinks producer marketing.  The Portman Group last week issued a Retailer Alert Bulletin asking retailers to stop selling the drink until its marketing was altered to comply with the Code.
Read more>>

Wetherspoon plans 250 new pubs
JD Wetherspoon has announced that it plans to invest £250million in opening 250 pubs across the UK over the next five years, pushing the size of its estate closer to 1,000.  The group opened 39 pubs in the year to the end of July and is already under way with a programme to launch 40 new pubs by the middle of next summer. Wetherspoon currently operates 743 pubs in the UK.

Fleurets reports on property prices
Property company Fleurets has reported a decline in sales of leased pubs in favour of freeholds over the past 12 months. In the past, 50 per cent of its business was in leaseholds but now it is more like 30 per cent, with freeholds coming on to the market through disposals by the major pubcos. Fleurets reported that freehold prices rose from an average of over £200,000 in 1999 to nearly £700,000 in 2007 but have fallen back to an average of £556,000. Leasehold prices rose from about £50,000 in 1993 to £80,000 in 2007/08 but have shot back down to an average of only £48,000, according to Fleurets.

Morrisons sells beer for 25p a bottle
In a four-day promotion over the weekend, Morrisons cut the price of beer to just 25p a bottle. Customers could buy a pack of four 275ml bottles for just £1.


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