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.

December 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

Orchid plans investment in PBR Bars Orchid plans investment in PBR bars

The Orchid Group, the pub and restaurant operator, is planning to spend £3million over the next 12 months on improvements to the Premium Bars and Restaurants (PBR) portfolio that it acquired last week. The 43-strong package included 13 Living Room bars, three Prohibition bars and several city-centre bars and clubs, formerly operated by PBR which went into administration in August. Orchid chief executive Rufus Hall said the company, which previously specialised in suburban pubs and restaurants, would develop The Living Room and Prohibition brands and create a new division dedicated to running bars and clubs, based in PBR’s former offices in Newcastle. The deal, for an undisclosed sum, brings the size of Orchid’s estate to 288, with more acquisitions planned for 2010. Orchid bought the 10-strong Bar Room Bar estate in June after that company went into administration.


Government “shelves” happy hours ban
The government has shelved its promise to ban pubs and clubs from offering cut-price alcohol through promotions such as happy hours, the Observer reported yesterday. Plans for a tough new mandatory code on “irresponsible” alcohol promotions before next year's general election have been delayed indefinitely by ministers. Whitehall sources have confirmed that it will not be introduced ahead of the election, expected in May, after determined opposition from the drinks industry and a dispute within government. Read more:
Read more > ;>

Leading mixologist wins The Restaurant
Mixologist JJ Goodman and his business partner James Hopkins have been named as the winners of the latest series of The Restaurant. They will go on to open a restaurant with Raymond Blanc with the concept of pairing cocktails with food. JJ Goodman is an award-winning cocktail bartender who this year set up the London Cocktail Club bar in London’s West End after heading the bar at the relaunched Stanza.

Exhibitors sign up for next year’s Distil
Next year’s Distil spirits exhibition at London ExCel has already attracted key exhibitors, including Pernod Ricard, Fosters and Bibendum. There will also be sections hosted by trade bodies from Mexico and Peru representing the spirits categories of tequila and pisco. Distil Tastings, hosted in partnership with Taste and Flavour, will spotlight a wide range of spirits categories. Distil and the co-located Lo ndon International Wine Fair (LIWF) are to have a new layout at ExCel next year. Distil, now in its third year, will join the LIWF in the South hall next to the west entrance while other venue improvements will encourage better traffic flow at both exhibitions. Distil and LIWF take place on May 18 to 20.
Read more >>

Share issue for Malmaison and Hotel du Vin
Hotel group MWB Group Holdings, which owns Malmaison and Hotel du Vin, is planning to raise £27.5million by issuing new shares. The company said the share issue would “provide the group with a more stable financial structure by increasing the level of equity in the company”.

Winners of first Chase Vodka competition
Warwick Column o f Alma de Cuba in Liverpool was the winner of the first Chase Vodka cocktail competition for bartenders in the north of England. Held at Bar Lounge in Chester, it featured 14 contestants, with second prize going to Nic Friar of Bar Lounge, third to Li Armiststead of The Living Room in Liverpool and fourth to Sammy Abdalla of Oxton Bar/Terrace in Wirral.

Like-for-like profits dip at Punch
Like-for-like profits in Punch Taverns’ leased estate were down in the 16 weeks to December 12, according to a trading update last week. The company reported that the decline was in line with the previous year, which has been interpreted by City analysts as meaning it has continued at about 11 per cent. Like-for-like turnover in the group’s managed pubs fell by 1.6 per cent but operating margins had “stabilised”.

Profits fall for Clapham House
Restaurant group Clapham House, which operates Gourmet Burger Kitchen (GBK), reported that pre-tax profits fell by 20 per cent to £1.6million in the six months to September 27. It followed the failure of its subsidiary Tootsies which went into administration earlier this year. However, revenue increased by 13 per cent to £22.5million for the period, during which it opened two new restaurants in the UK. The company said it was positive about the future as it focused on the two “robust” brands of GBK and The Real Greek.

Intertain plans Highlight comedy bars
Intertain, the bar operator that took on Regent Inns’ estate, is to relaunch its former Jongleurs comedy venues under the new brand of Highlight from January 8. Control of the Jongleurs name returned to its co-founders Maria Kempinska and John Davy after Regent Inns went into administration. The pair have been in talks with other bar and pub operators about opening new Jongleurs clubs.

Christmas boost for pubs and restaurants
The pub and restaurant trade is expected to receive an average 22 per cent pre-Christmas boost compared to the rest of the year but face a drop in consumer spending in the new year, according to research by market analysts Horizons. “We would also anticipate that people will cut back much more in January as VAT rises, credit card bills start arriving, the weather gets colder and strike action from the likes of BA depress the nation's mood,” said Horizons managing director Peter Backman.

Coffee shop market continues to grow
The coffee shop sector is expected to continue growing in the UK after achieving sales of £1.63billion in 2009, a rise of 6.2 per cent on 2008 despite the recession. The ninth annual UK Project Café report from analysts Allegra Strategies predicts that there will be more than 12,500 coffee shops in the UK by the end of 2012 from about 11,000 at December 2009. Allegra said the growth was down to coffee culture becomin g “fully entrenched in modern UK lifestyle”.

Heineken axes White Lightning
White Lightning Cider, the high-strength off-trade brand, is being axed by Heineken UK to emphasise its commitment to responsible drinking. The cider, which will be removed from shelves in March, had already had its ABV reduced from 7.5 per cent to 5.5 per cent. Mark Gerken, sales managing director for off-trade at Heineken UK, said: “Premium and mainstream ciders continue to drive the overall growth of the category and our future investment will focus on our brands in these categories to respond to consumer demand and continue to drive value.”

The Bar magazine team wishes you a Happy and Profitable Christmas and New Year. The next e-newsletter will be on Monday January 4.


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