News round-up February 15-22, 2010:
Townhouse, Ithaca, 42Below, BII, Pernod Ricard, Brewdog, London Town, Millennium & Copthorne, Regent Inns

Legendary Townhouse bar closed for good

Townhouse, the west London bar where the Porn Star Martini (pictured) was born, has closed permanently instead of reopening after a refurbishment at the end of January. In a message on Facebook, it announced: “It is with a bitter and heavy heart that I am telling you all Townhouse is never to open again. The journey has been fun and the ending complicated.” The Knightsbridge bar was opened in 2002 by mixologist Douglas Ankrah and, with its sister bar Lab in Soho, was taken over by new management last summer. Lab bar remains open but currently has a temporary sign outside showing a name change to Academy.

Belfast bartenders win 42Below competition

A team from Belfast are off to New Zealand next month after winning the UK leg of the 42Below Cocktail World Cup. Hayden Lambert and Lisa McCarron from the Merchant Hotel triumphed at a competition at Shoreditch House last month, impressing judges including chef Raymond Blanc and top bartenders Peter Dorelli and Kevin Armstrong. Their winning cocktail was Catch 42, made with 42Below plus tomato extract, passion fruit puree, lime juice, sugar and salt, all clarified to create a cocktail that retains its flavour but is completely clear. The west London team – James Wynn-William from Trailer Happiness and Stuart Fritz and Danny Winter from Lab – will also be going to the finals in New Zealand after winning the “wild card” for their marketing ideas.

Top Manchester bar to close

Award-winning Manchester bar and restaurant Ithaca is to close after going into voluntary liquidation. It was due to be relaunched by a new management team but the snow and freezing conditions in January devastated trade. Ithaca was opened by Arnie Hira and his brother Manoj in 2008 and became one of the top luxury venues in the city. A spokesman for the company said there were plans to relaunch the brand “on a smaller scale” in Cheshire next year.

Business-building guidance at BII events

The BII is running events in Edinburgh and Llangollen on Tuesday, with speakers providing business-building tips for owners, managers and staff of bars, pubs, clubs and hotels. BII Scotland is holding its annual general meeting followed by its annual curry and Deuchars night at the Caledonian Brewery. The guest speaker is Alan Jones, director of Host Academy for Glasgow-based bar and club operator G1 Group. The BII Wales event on Tuesday morning features its AGM and a lunch. The speakers will be rating expert Michael Yass from property consultant Fleurets and industry consultant Phil Dixon. For information and tickets, call Tim Palmer on 01202 242714 or 07771 560922.

Search for operator of London’s highest bar

An operator is being sought to run the new Sky Bar and restaurant at the top of the Heron Tower, which is being built in Bishopsgate in the City of London. At 13,423 square feet, it will be the highest bar in London on the top three floors of the 46-storey building. It will have external terraces and its own lifts accessed via a dedicated entrance. The search for an operator is being led by Heron International, the property group behind the project.

Pubs remain open despite administration

London Town, which owned or managed about 400 pubs, has gone into administration but most of its sites continue to operate. Christie & Co has been instructed by administrators from PricewaterhouseCoopers to find buyers for 45 of the pubs. However, the rest are being run under a short-term management contract by the group’s former management arm, London Town Pub Management, which has been sold in a “pre-pack administration” deal to a team including former London Town management such as chief executive Billy Buchanan.

BrewDog regains world’s strongest beer title

Scottish brewer BrewDog has launched a new 41 per cent ABV beer called Sink the Bismarck! to regain the title of the world’s strongest beer. Earlier this month, German brewer Schorschbrau introduced the 40 per cent ABV Schorschbock, snatching the title from Brewdog’s 32 per cent ABV Tactical Nuclear Penguin. Sink the Bismarck! is an IPA, costing £40 a bottle, containing four times the hops of normal IPA and frozen four times to create the strength.

Pernod Ricard predicts growth for 2010

Drinks giant Pernod Ricard continues to forecast growth in organic profit of between one and three per cent for its financial year to the end of June 2010. However, last week it reported that net profits for the half-year to December 31 were down two per cent to €604million while net sales for the period were down 10 per cent to €3.79billion. It expects growth to come from increased investment in strategic brands and markets and the “vitality of emerging markets”. Champagne and wine were worst hit but some premium brands saw growth, including Jameson with seven per cent growth, Absolut at five per cent and Martell at three per cent.

Revenue drop for hotel operator

Millennium & Copthorne, which operates 20 hotels in the UK, has reported a 16.8 per cent drop in full-year revenue to £654million in 2009. Pre-tax profits fell by 31.9 per cent to £81.9million. However, the group, which operates all over the world, said the best performance was in London where revenue per available room fell by only 2.5 per cent.

Punch sells freehold on top London pub theatre

The freehold of the King’s Head pub and theatre in Islington, London, has been bought by Stephanie Sinclaire, the widow of the theatre’s founder and long-serving artistic director Dan Crawford. She said the acquisition from Punch Taverns would be the springboard for a campaign to raise funds to protect and improve the venue, including a second storey to the theatre. The acquisition was handled by law firm Maxwell Winward LLP with bank funding arranged by Christie Finance.

Disposal of ex-Regent Inns sites under way

The leasehold of the former Walkabout bar in Islington has been put on the market through Christie & Co. It is one of nine sites formerly run by Regent Inns which are being handled by Christie & Co after the rest of the business was sold to new operator Intertain. Other sites have been surrendered back to the freeholders or are in advanced stages of negotiation for new leases.

22 February 2010

News round-up February 8-15, 2010:
Music tariffs, The Bar Group, Guinness, Sun Beach, Couture, quiz machines, Coca-Cola, Kirin & Suntory

Bars to share in music refunds

Licensees across the UK are to share in £20million in refunds after the High Court rejected an appeal by music collection agency PPL over charges for playing music. It is a victory for the British Beer & Pub Association which has been fighting the case since 2005, at a cost of around £400,000, along with the British Retail Consortium and the British Hospitality Association. The High Court ruling means the licensed trade will save about £3million a year, but it also opens the door to refunds going back to 2005. PPL was appealing against a ruling last November.  BBPA chief executive Brigid Simmonds said: “This could not come at a more important time for our sector as we struggle to come out of recession and will allow pubs to both claim a refund and pay less going forward.” Licensees will be able to claim refunds based on their own calculations of what they are owed, or they will be able to ask PPL to make the calculation for them.  Details of how to claim will be available in due course.

Pre-pack deal for Bar Group bars

Bars and pubs operated by The Bar Group have been saved from closure through a pre-pack administration deal. The company operated 17 leased sites in London and the south-east, including the Bok Bars and Wishing Well pubs. Paul Wigham, the former chief executive of The Bar Group, has bought eight of the sites through his other business, Orange Sun Bars, which already runs 17 outlets. The remaining Bar Group sites are being run by administrators until a buyer can be found. Wigham said: “These are unfortunate times when pubs are struggling but the sites that we have taken over are quality operations with great management. We look forward to moving forward positively out of the recession with quality assets of this nature.” The Bar Group bought Wishing Well Taverns, which included the South African-themed Bok Bars, in 2003.

St Patrick’s Day plans for Guinness

Diageo GB has launched a programme of activities for Guinness to help licensees make the most of St Patrick’s Day on March 17. It is providing 20,000 point-of-sale kits which will go out to outlets nationwide including inflatable Guinness pints, hats and props as well as flags, banners, drip mats and window stickers. Bars and pubs are also being encouraged to feature a classic Black Velvet on their menus, a combination of Guinness Extra Stout and champagne. Sales of Guinness receive an uplift of up to 72 per cent around St Patrick’s Day, driving the total beer category sales. This year’s celebrations fall on a Wednesday and, by ordering kits early, licensees can bring to life their St Patrick’s Day celebrations over the weekend before the 17 as well as on the day itself.

Pre-mixed cocktails launched into UK

A new range of ready-to-drink pre-mixed cocktails, called Sun Beach, has been launched into the UK on-trade by EW Retail Packers. It is the UK sales and marketing partner for the Spanish manufacturer of Sun Beach, whose six flavours are Strawberry Daiquiri, Mojito, Piña Colada, Cosmopolitan, Caipirinha and Love on the Beach (based on Sex on the Beach).

ALMR opposes blanket bans

Proposals to give councils extra powers to curb 24-hour retailing of alcohol are being fought by the Association of Licensed Multiple Retailers (ALMR). The Crime and Security Bill, which is going through Parliament, includes an amendment allowing local authorities to impose a blanket ban on the sale of alcohol between 3am and 6am in large areas such as town and city centres if they believe an unidentified shop or bar is responsible for alcohol-related problems. The ALMR said it was fighting the proposal because it was unfair to responsible licensees and could open the way for more restrictions on licensing.

Couture wins museum bar contract

Contract caterer Couture has won a £2.5million contract to run the Left Bank bar and restaurant at the redeveloped People’s History Museum in Manchester. It took over the facilities on February 13 on a five-year contract which will see it operate a café by day and a bar by night. It also operates the café at the Manchester Museum.

Wetherspoon backs time-zone change

JD Wetherspoon is backing a campaign to switch the UK onto the same time zone as continental Europe in the hope that longer, lighter evenings would improve sales and be a benefit to customers. According to a report in yesterday’s Mail on Sunday, representatives from the leisure industry are to meet ministers this week to discuss adopting the change, which would put the UK two hours ahead of Greenwich Mean Time in the summer and an hour ahead in winter.

Quiz machine threat for bars

Government plans to change the taxation of quiz machines such as Who Wants To Be A Millionaire and Monopoly will cost the industry £85million, the British Beer & Pub Association (BBPA) has warned.  Her Majesty’s Revenue and Customs (HMRC) is seeking to reclassify “skills with prizes” (SWP) machines as gambling machines, making them liable for gaming machine tax.  It also wants to make the tax retrospective for the last three years, totalling £85million. Brigid Simmonds, chief executive of BBPA, said: “The perverse result of this tax change will be to switch more people onto gambling as quiz machines are switched off across Britain.”

Warning on Jägermeister haul

Cellar Trends has asked licensees to beware of being offered stocks of stolen Jägermeister after a theft from a lorry in Lincolnshire. Thieves took 50 pallets of Jägermeister 50cl which are readily identifiable because 50cl packs are not in general distribution. Retailers being offered such stock are asked to contact Cellar Trends on 01283 217703 and ask for Christian Davis, or to contact PC Meldrum at Lincolnshire Police on 01476 402222.

Japanese brewers end merger talks

Japanese brewers Kirin Holdings and Suntory have ended talks that would have created a combined food and drinks group with $43billion in annual sales. They began talks eight months ago on a deal that would have brought together Kirin’s draught beer, whisky and shochu with Suntory’s own beers and spirits, including Midori. According to news agency Reuters, the deal was complicated by the two companies’ different corporate cultures. Kirin is listed and based in Tokyo while Suntory, based in the western city of Osaka, is unlisted and 90 per cent owned by its founding family. The merger would have created a group similar in revenue to PepsiCo Inc and Kraft Foods Inc in revenue.

Sales rise for Coca-Cola

Coca-Cola has reported stronger-than-expected quarterly sales for the fourth quarter of 2009. Net operating revenue rose by five per cent to $7.51billion, ahead of analysts’ forecasts of $7.22billion. Sales by volume rose by five per cent, beating gains of two per cent in the third quarter.

New pubs minister considers tax breaks

The government’s new Minister for Pubs is to examine new measures to help licensees including new tax breaks and relaxations in planning laws. John Healey, the Housing and Planning Minister, was appointed to the role by Gordon Brown last week and will head a task force with five other ministers to look at way of supporting Britain’s licensed trade.

February 15, 2010

News round-up February 1-8, 2010:
Cutty Sark, The Glenrothes, glassware, Principle Leisure, Chase Distillery, Mangrove, Intertain, Fuller's, Learnpurple, OFT

Berry Bros sells Cutty Sark to Edrington

Berry Bros & Rudd has finalised an agreement to sell Cutty Sark blended Scotch to The Edrington Group.  As part of the deal, Berry Bros & Rudd will acquire The Glenrothes single malt brand from Edrington, which will retain ownership of The Glenrothes Distillery.  It has signed long-term agreements to supply Berry Bros with whisky fillings and stocks.  The Glenrothes will continue to be distributed by Maxxium UK, the alliance that includes Edrington.  The agreement is due to be concluded by April.

Slowdown in pub closures

Pubs are closing at a rate of 39 a week, down from 52 a week in the first half of 2009, according to new data from the British Beer & Pub Association (BBPA) for the last six months of last year.  A total of 2,365 pubs closed during the whole of 2009 and, despite the slowdown in closures, figures are still at historically high levels.  The BBPA has also launched a campaign to raise awareness of the cost to the industry from lost kegs and casks.  It is promoting best practice on storing containers. Details at www.kegaware.com.

OFT re-opens beer tie examination

The Office of Fair Trading has re-opened its examination of the beer tie to head off an appeal against its ruling in October that no action was required.  Although it still stands by its decision on pub companies’ supply arrangements, it will be seeking comments from interested parties over the next six weeks until March 24. It follows CAMRA’s application for the Competition Appeal Tribunal to review the OFT’s decision. In a statement, the OFT said: “The OFT is mindful of the substantial resource that both it and CAMRA would need to invest in litigation. The OFT has therefore decided that it would be a more constructive use of resources to allow CAMRA and any other interested persons or groups the opportunity to make representations about the findings it reached in its response to the super-complaint.”

Trials planned for safer pint glasses

The Government is preparing to trial two new prototype pint glasses that have been designed to reduce injuries from glass attacks in pubs, bars and clubs.  The glasses have been manufactured so that do not shatter into loose dangerous shards.  They are currently undergoing tests before being piloted in the on-trade within 12 months.  One design, called Glass Plus, looks like a normal pint glass but has a transparent coating of bio-resin inside which makes it stronger and ensures shards bind together in bigger pieces if broken.  The second design, called Twin Wall, is made by bonding two ultra-thin layers of glass together in a similar way to laminated car windscreens.  The glass is very hard to break but, if it does, shards are held together by resin.

Côte takes on The Establishment

The former site of the award-winning Establishment Bar and Dining in Parsons Green, south-west London, has been turned into the 11^th outlet for Côte Restaurants.  The purchase was handled by leisure property consultants Shelley Sandzer. The operators still have the second Establishment in nearby Battersea.

Principle Leisure expands with new bars

Principle Leisure is adding another venue to its group of bars and restaurants.  It has taken over a former video store in Guisborough town centre in Teesside and is turning it into a “continental bar” with the town’s first rooftop terrace.  The project is being supported by Redcar and Cleveland Council under its Uplifting Our Town Centres programme, which offers a contribution of up to 50 per cent for undertaking external improvements on premises, up to £5,000.  Fit-out starts this month, due to open in early spring. Last month, Principle Leisure NE took over popular Sunderland city centre bar  Aspire in Low Row and, working with design specialist Collective Design, is giving it a “contemporary” makeover for an opening in April.

Mangrove takes on Chase vodka and gin

Chase Distillery’s portfolio, including its potato-based vodka, has been taken on by distributor and brand specialist Mangrove UK.  It also includes its apple vodka Naked Chase, fresh fruit liqueurs and its newest product, Williams Elegant Crisp Gin.  After two years of development, the gin is made from organic cider apples along with other botanicals such as elderflower and hops, distilled over 100 times.

Plans for late-night alcohol ban

Licensing minister Gerry Sutcliffe has confirmed that councils would have the power to impose a blanket ban to stop clubs, bars and pubs serving alcohol after 3am in late-night troublespots.  The proposal, which was first suggested by the Prime Minister in September, is included in the Crime and Security Bill which is going through Parliament.  Councils would be able to prevent the sale of alcohol between 3am and 6am, in both the on-trade and off-trade, across an entire area even if the causes of public disorder or nuisance were attributed to just one outlet.

Fuller’s reports “record sales” in managed pubs

London brewer and pub operator Fuller’s has reported “record sales” for December in its managed pubs, bars and hotels but said January’s figures suffered from the big freeze.  Like-for-like sales for the 44 weeks to January 30 were up 2.8 per cent. Like-for-like profits in its tenanted pubs division were down two per cent for the 44 weeks while beer volumes were up two per cent over the same period.

Trading remains “robust” at Capital

The Capital Pub Company, which operates upmarket pubs in London, has reported that trading has continued to be “robust” since its last upbeat statement in November.  Chief executive Clive Watson said the company was trading well and had improved its performance over last year.  “Whilst we remain cautious regarding the general economic situation, we are encouraged by current trading and look forward to the 2010 World Cup.”  It has added two more pubs to its estate including the Uplands in East Dulwich, which is being refurbished at a cost of £250,000.

Training company expands in Scotland

Learnpurple, which works with companies to develop, engage and retain staff, has strengthened its reach north of the border by opening a Scottish office.  It specialises in the service industries, including the licensed trade, providing its training courses to the likes of Malmaison and Hotel du Vin and Montpeliers (Edinburgh). Learnpurple managing director Gavin McLean will lead the new venture when the office opens on February 25.

Ex-Punch chief joins Intertain

Stephen Lambert, the former chief executive of pub companies Punch Taverns and Inn Business Group, has been appointed a non-executive director of Intertain.  The company was formed by the buy-out of the bars and pubs of Regent Inns when it went into administration last year.  He was most recently chief executive of Oasis Healthcare.

World’s strongest beer arrives in UK

February 8, 2010

News round-up January 25 - February 1, 2010:
Guinness, Greene King, Marston's, Geranium gin, Hydes, BII, Glenfiddich, BBPA, Sheffield

Britons drink less alcohol but binge at home

New figures confirm that Britons are drinking less alcohol – but that their heaviest drinking is done at home rather than at the bar.  A survey by the government’s Office for National Statistics showed that, in 2008, adults drank an average of 12.2 units of alcohol a week, down from an average of 13.5 units in 2006.  Last week’s report, Smoking and Drinking Among Adults 2008, also revealed that 46 per cent of men and 57 per cent of women said their heaviest drinking day was at home compared to 33 per cent of men and 20 per cent of women saying it was in a pub or bar.

Guinness kicks off rugby promotion

A new campaign including an on-trade promotion is set to kick off this month for Guinness, tying it into the 2010 international rugby season.  Diageo GB is sending out 6,000 point-of-sale kits to licensees to coincide with the RBS 6 Nations, including a promotion, called Try Time, offering consumers a chance to win £30 worth of rugby gear. To enter, people text in the country that they are supporting to a short-code and receive an MMS message back containing a randomly selected shirt number on it. If the player on their team wearing that shirt number scores the last try of the game, the consumer wins. Diageo is also launching a new ad and print campaign featuring rugby union stars Lewis Moody, Paul Sackey and Lee Byrne, under the strapline of Bring It To Life.

New powers to tackle ‘problem pubs’

New police powers came into force on Friday to help them tackle underage drinking and close down “problem premises”.  Changes under the Policing and Crime Act 2009 mean that local authorities can now take away the licence from a “problem” pub or bar without waiting for a resident to make a formal complaint.  The Act also now enables police to charge retailers, including licensees, with persistently selling alcohol to under-18s if they are caught twice within three months. Until Friday, they had to be caught three times.

Enter now for BII Licensee of the Year

Entries are now open for the 2010 BII Licensee of the Year, which recognises professionalism and excellence across the licensed hospitality industry. Judges will look for individuals or partnerships who make the best of the resources they have available, whether running a pub or a city-centre bar.  The winner will be announced at the BII’s annual industry lunch at Grosvenor House in London’s Park Lane in May.  The closing date for entries is February 15.  Visit www.bii.org/loya.

Geranium gin launched by Coe Vintners

Wholesaler Coe Vintners has officially launched Geranium Premium London Dry Gin, which was developed by Hammer & Son. As reported in Bar magazine in December 2009, the gin was created by gin specialist Henrik Hammer and his late father, using the oils from geranium plus eight other ingredients. It produces a smooth and well balanced gin with a delicate taste of juniper, a crisp citrus-rosy aroma from the geranium and exotic notes from the other botanicals.

Snow dents sales increase for Marston’s

An increase in like-for-like sales at Marston’s managed pubs and bars, including Pitcher & Piano, was dented by last month’s snow and freezing conditions.  Its Inns & Taverns business reported a 1.5 per cent rise in like-for-like sales for the 16 weeks to January 23, but sales had been up by 2.9 per cent for the five weeks to January 2 before the big freeze hit.  Its tenanted and leased pub business saw like-for-like profits drop by 4.9 per cent over the 16 weeks, but its own beer volumes were “in line” with last year, with premium cask ale volumes up one per cent and premium bottled ale volumes jumping by 16 per cent.

New board at Mitchells & Butlers

The boardroom battle at pub and bar operator Mitchells & Butlers reached a conclusion last week when chairman Simon Laffin was ousted. At a shareholder meeting in Birmingham, 66 per cent of votes cast went against Laffin, leading to him being replaced by John Lovering, former chairman of Debenhams.  The board came under attack from two large shareholders: investment vehicles Piedmont, owned by Joe Lewis, and Elpida, owned by JP McManus and John Magnier.  Other appointments to the board last week were Jeremy Blood, the former managing director of Scottish & Newcastle UK, and Michael Balfour, the founder of Fitness First, who had both been opposed by the M&B board.  Chief executive Adam Fowle and finance director Jeremy Townsend retained their positions.

BBPA predicts recovery in beer sales

Beer sales could be about to recover, according to the British Beer and Pub Association (BBPA) whose latest figures indicate a slowdown in decline towards the end of last year.  The figures showed the lowest fall for two years in the last three months of 2009, dropping overall by 3.6 per cent. In the on-trade, beer sales were down five per cent while the off-trade saw a 2.1 per cent drop.  Data for the whole of 2009 show an overall fall of 4.2 per cent compared with 5.5 per cent in 2008.

‘Relatively strong growth’ for Greene King

Greene King, the pub operator and brewer, has reported “relatively strong growth” for the 38 weeks to January 24 although sales were hit by last month’s snow and freezing conditions. In a trading update, it said that like-for-like sales in its managed houses were up by five per cent for the first 35 weeks until the bad weather hit, leading to a figure of 4.3 per cent for the full 38 weeks.  The group added that it expected like-for-like sales to “moderate” for the rest of its financial year because of good figures last year and the rise in VAT.  Beer volumes were up by 7.2 per cent for the 38 weeks, but Greene King’s tenanted and leased business saw average profit per pub fall by 4.9 per cent for the 36 weeks to January 10.  The company also announced it had bought eight pubs from Punch Taverns for £15.9million.

London is top for hotel developments

The large number of hotels being built and refurbished in London means that it has more hotel bedrooms under active development than any other city in Europe, according to the latest STR Global Construction Pipeline Report.  The capital has 5,794 rooms in development out of more than 100,000 rooms at 587 hotels throughout Europe. In second place is Moscow and in third is Berlin.  The “upscale” segment of rooms accounts for the largest proportion at 22.1 per cent, with economy at 19.4 per cent and luxury at 9.2 per cent.

Hydes Brewery reports loss

Manchester’s Hydes Brewery has reported a pre-tax loss of £1.3million for 2009 after suffering from bad debts.  The regional brewer has written off over £1million of debt from 2008 and last year after some tenants were unable to pay and quit the business.  The departure of tenants led to eight pubs being brought into the managed estate, which as a result suffered a fall in profits of 14 per cent.  However, Hydes, which operates 80 pubs and bars and brews leading brands such as Hydes Original and Jekyll’s Gold, reported annual turnover was up last year by seven per cent to £22.8million.

Sheffield bars win responsibility awards

Bar Phoenix in Sheffield has been named the best bar in the city because of its responsible approach to retailing.  It won the top award at a ceremony last week for Sheffield’s first Best Bar None scheme, which was entered by 45 operators. Second place went to Intertain’s Walkabout bar.  The top club was The Hubs, followed by O2 in second place.  The best pub was the Frog & Parrot, with the Cavendish in second place.

New releases from Glenfiddich

February 1, 2010

News round-up January 19-25, 2010:
Maclay Inns, Pilsner Urquell, Urban & Country Leisure, Principle Leisure, Vodkat, Wetherspoon

Scottish operator to expand after sales lift

Bar and restaurant operator Maclay Inns announced a four per cent increase in like-for-like sales over the four weeks to January 9. Food sales increased by eight per cent, with liquor sales and accommodation bookings also strong despite the tough financial climate and extreme weather conditions. After the appointment of Michael Denny as a non-executive director, the company is now raising new investment funds through its sister company the Thistle Pub Company II plc which will allow Maclay to acquire five new outlets across Scotland this year. It currently has 26 bars, restaurants and pubs, including the Lansdowne in Glasgow and Canal Station in Paisley.

Pilsner Urquell searches for top bartender

The search for Pilsner Urquell’s 2010 UK Master Bartender has been launched, with an added incentive for bars and pubs to enter their staff. As in previous years, the UK winner will represent their country at the final, which is in the Czech Republic, but for the first time the licensee of the winning premises will also attend. The programme, which is open to all draught stockists of Pilsner Urquell and is free to enter, tests bartenders’ knowledge covering the history of the Czech lager, the storage of the beer and pour and presentation.  If you are a Pilsner Urquell stockist and would like to know more, email pilsnersupport@bmt.uk.com.

Ex-Bar Room Bar boss plans pubs

Ross Sanders, one of the previous owners of Bar Room Bar, has announced plans to build an estate of nearly 30 pubs as managing director of Urban & Country Leisure. He also plans a £10million investment programme over the next two years. His previous venture, Bar Room Bar, was formed in 2007 when he bought 16 sites from Orchid Group but it went into administration and was bought back by Orchid last June.

SBPA calls for fairer treatment

The Scottish Beer and Pub Association (SBPA) has called on the Scottish Parliament to create more of a “level playing field” between the on-trade and supermarkets in its Alcohol Bill (Scotland). As part of consultation on the proposals, SBPA chief executive Patrick Browne said the current Licensing (Scotland) Act 2005 unfairly discriminated against the licensed trade, raising questions about how committed politicians were to tackling “irresponsible promotions”. He said: “It is fundamentally flawed for pubs to have been banned from running promotions like buy-one-get-one-free offers since 1 September 2009, but for supermarkets to be allowed to continue to do exactly that at a fraction of the prices that any pub could ever charge.”

North-east operator aspires to new bar

One of Sunderland’s most popular bars is to get a contemporary makeover after being taken over by Principle Leisure NE. Aspire in Low Row in the city centre has been bought for an undisclosed amount by the company which operates 10 bars and restaurants across the UK, including the Riverbar in Washington and Popolo in Newcastle. Management are working with design specialist Collective Design to finalise plans for how to transform the iconic venue, with the overhaul set to include a new name, a new look and a new food and drink menu. It is expected to open in April.

New code to govern pubco tie

A new code bringing in reforms on how tied agreements operate in the pub trade has been published by three leading industry associations. The Pub Industry Framework Code of Practice results from an agreement reached between the British Beer & Pub Association, British Institute of Innkeeping (BII) and the Federation of Licensed Victuallers Associations. The code will greatly improve the openness and transparency of tied agreements between pub and bar operators and lessees. It significantly increases the information made available by pub companies to prospective lessees and tenants and builds on existing good practice and ensures would-be licensees are better informed and better qualified.  For the first time, the code will also ensure that people who purchase assigned leases from out-going licensees will receive the same level of detailed information available to those taking on a pub directly with pub companies.

Slowdown in income fall for Enterprise

Enterprise Inns has slowed down the decline in average net income at its pubs after disposing of underperforming pubs. In a trading statement, it said that the figure had fallen by about four per cent in the 16 weeks to January 16 compared to eight per cent during the last financial year. It said: “Trading during this period has been variable, although generally strong Christmas trade brought a welcome uplift in sales for many of our licensees. Whilst extreme weather, particularly during the first two weeks of January, kept many customers at home and disadvantaged some pubs, it brought extra custom to others.”

Big freeze knocks JD Wetherspoon

Snow and freezing temperatures have hit like-for-like sales at pub operator JD Wetherspoon, which reported a 0.3 per cent fall in the 12 weeks to January 17. It blamed the January weather, adding that Christmas and New Year itself had been better, with like-for-like sales up 1.2 per cent in the 10 weeks to January 3.

Diageo wins vodka court case

January 25, 2010

News round-up January 12-19, 2010:
Alcohol code, Be At One, The Living Room, Luminar, C&C, design awards, Christie & Co, Red Bull, Quilmes

Sales lift for expanding Be At One

Be At One, the expanding London bar chain, has announced that like-for-like sales for the Christmas period increased by 13.7 per cent over the five weeks to January 3. Operations director Richard Zivkovic said the figures supported the company’s intention to expand its nine-strong estate further this year, adding that more were already in the pipeline. “As always, we will concentrate on a few simple factors: quality and consistency of product and the Be At One people."

Government confirms mandatory code on alcohol

Ministers have today confirmed details of the new mandatory alcohol code that will be imposed on bars, pubs and clubs across England and Wales this year.  From April, bars will be banned from running “irresponsible” promotions such as “all you can drink for £10” and will have to provide free tap water where available. They will also be banned from activities that involve pouring spirits straight into customers’ mouths.  From October, all bar staff will be required to check the ID of anyone who looks under 18 and they must offer a choice between a single and double measure of spirits and a small and large glass of wine. However, the Government has ruled out compulsory minimum pricing for alcohol in stores. Brigid Simmonds, chief executive of the British Beer and Pub Association, today said: “We have consistently supported legislation to crack down on irresponsible promotions in pubs and supermarkets.  However, with nearly 70 per cent of all alcohol now sold through supermarkets, the pub-centric measures announced today are lop-sided and unbalanced. Pubs are struggling and the country is in recession.  This is not the time for the Home Office to be burying business in yet more unnecessary red tape. All the powers needed to deal with problem premises already exist.  The trouble is poor enforcement of the current laws.  Just adding to that pile is unhelpful.”

Sales increase in December across trade

Like-for-like sales across Britain’s leading bar, pub and restaurant groups grew 2.9 per cent in December compared to the same month in 2008, according to the latest Coffer Peach Business Tracker data. “The leading chains have worked hard to attract customers out of their homes, despite the weather, and that effort appears to have paid off,” said Peter Martin of Peach Factory, which produces the Business Tracker. “This year, for example, more emphasis has been put on securing pre-booked business for bars and pubs, as well as restaurants, over the Christmas and New Year period.” The tracker, which covers companies such as Novus Leisure and Mitchells & Butlers, found total sales were ahead 4.7 per cent.

Luminar warns on profits after sales drop

Nightclub operator Luminar Group has warned that its annual pre-tax profits will be “below market expectations” after revealing like-for-like sales in December were down 13.8 per cent year on year. It blamed “general economic conditions, and in particular youth unemployment”, exacerbated by heavy snow since last month. However, Luminar added that its venues, which include Liquid and Oceana, achieved “much better sales” on the key festive nights of Christmas Eve and New Year’s Eve while average sales per customer were 1.5 per cent higher in December than the previous year. 

Living Room boss to quit after Orchid takeover

Danny Fox is to leave his role of managing director of The Living Room after 11 years with the brand after it became part of Orchid Group. He was one of the founding shareholders of The Living Room in 1999, becoming operations director until its acquisition in 2007 by Ultimate Leisure, which became Premium Bars & Restaurants (PBR). He last week announced his intention to pursue other opportunities within the industry after PBR, including 13 Living Rooms, was acquired by Orchid Group at the end of last year. “I’ve learned a lot from developing The Living Room and had a great time doing it,” he said. “It’s a fantastic brand and I’m happy to leave it in the capable hands of Orchid Pubs & Dining. Orchid is well placed to pick up the reins and their expertise will no doubt take The Living Room forward.”

Late-night sector “to recover in medium term”

The late-night bar and club sector has the potential for recovery in the medium term but faces another tough 12 months, according to the new Business Outlook 2010 publication launched by property agency Christie & Co last week. The sector felt the impact of the recession in 2009 particularly because of the rise in youth unemployment, ongoing fall-out from the smoking ban and other legislative changes, the report said. “The industry continued to suffer a hangover from the ‘me too’ years, where operators flooded to the high street in order to capture a slot on the drinking circuit – at almost any price,” said Jon Patrick, head of leisure. “High-street rental levels that are based on floor areas or over-ambitious sale-and-leaseback deals have proved inflexible and left many retailers struggling to move their business forward. The late-night sector has the potential for recovery in the medium term, especially as the licensed leisure market continues to evolve and greater interaction between landlords, investors and operators becomes more widespread. The reality, we believe, is that the sector is set for another tough 12 months, with more pre-packs and administrations inevitable as the banks continue to reappraise and reposition their exposure to what is recognised as a high-risk high-reward market.”

Countdown to deadline for bar design awards

The deadline for entries in the second Restaurant & Bar Design Awards is only two weeks away. Entries need to be submitted by January 31 in categories including independent bar or club, multiple bar or club, hotel restaurant or bar, international bar, lighting scheme, identity and website design.  The shortlist is due to be announced in March and the ceremony is due to be held in June in Stratford, east London. Visit www.restaurantandbardesignawards.com.

Morgenrot adds Quilmes to portfolio of world beers

Wine and beer importer The Morgenrot Group plans to expand its world beer offering after being appointed the new importer for Argentine beer Quilmes.  The move follows the appointment of Graham Archibald, who was the driving force behind the incredible rise of Tiger beer, as senior national account manager in November with Quilmes joining Krombacher Pils and Cruzcampo in the group’s portfolio of iconic beers from around the world. After relocating to new offices and a new bonded warehouse in 2006, both Krombacher and Cruzcampo have benefited and seen steady growth. 

New director to manage industry relationships at Drinkaware

Drinkaware, the charity that campaigns for responsible drinking, has appointed Paul Hegarty, formerly head of communication at Molson Coors, to manage its relationships with industry. He said: “The substantial financial support from the industry for Drinkaware clearly demonstrates that alcohol producers and retailers fully understand that alcohol abuse is hurting their businesses.  I will be helping to find ways for funding companies to work in partnership with Drinkaware to change Britain’s drinking culture to help people understand how they can enjoy a drink without hurting themselves or other members of society.” More than £15million has been committed over the next three years by 50 companies including leading producers, operators and supermarkets, to support Drinkaware’s work.

Magners owner warns of “modest” decline

C&C Group, which owns Magners and Gaymers, has warned that it is set to report a “modest year-on-year decline” in cider volumes for the year when it posts its annual results in May. Last week, it reported that revenue for the three months to November 30 was down nine per cent compared to the same period the year before, reflecting a revenue decline in of 13 per cent for its cider division. For the nine months to November 30, the revenue decline was seven per cent. However, in December, overall cider volumes were three per cent ahead of the year before, including a 17 per cent increase in the GB market. On Friday, C&C announced that it had completed its acquisition of Constellation Brands’ cider business, The Gaymer Cider Company, although it is still subject to Office of Fair Trading approval.

Red Bull launches new marketing campaign

Red Bull next month launches a new marketing campaign after what it describes as the biggest Christmas ever for the brand. A new cartoon ad will be on screens in February, called “Shakespeare” and “Newton”, ending on a frame showing a Red Bull Energy Shot in an effort to raise awareness of this growing category. Red Bull will also be running consumer experiences at regional and national events, including some in the on-trade. Over Christmas, Red Bull reported sales of 35 million cans. Tom Smith, Red Bull trade communications manager, said: “We’re really pleased with the brand’s performance over Christmas which shows that despite the tough economic climate, consumers still want functional products that fulfil a certain need and in the case of Red Bull, give them the energy they’re looking for.  Our marketing plan is as exciting as ever and the increased consumer awareness will help to drive sales in the on-trade.”

Petition launched to ban alcohol in supermarkets

An online petition has been launched on the 10 Downing Street website by a leading club and bar operator calling for a ban on supermarkets selling alcohol. It has been organised by Gary Hunt, chief operating officer of Brook Leisure, whose venues include Che in Doncaster and CoCo in Doncaster, Barnsley, Bradford and Blackpool. It is intended to raise awareness of the role of the off-trade in fuelling drinking problems through cheap alcohol in contrast to the more responsible retail environment of licensed premises. Read more at http://petitions.number10.gov.uk/BanSupermarkets/

Tories promise to scrap “alcohol unit” labelling

The use of units to warn consumers about how much alcohol is contained in drinks should be scrapped in favour of something less confusing, according to the Conservatives. In his policy paper A Healthier Nation, Shadow Health Secretary Andrew Lansley promised to “work with the drinks industry” to create a system of labelling which was easier to understand.

January 19, 2010

News round-up January 6-11, 2010:
Novus Leisure, minimum pricing, Yates's, Constellation, Cutty Sark, Christie & Co, WaverleyTBS, Smirnoff, Marlboro

A happy Christmas for Novus Leisure

Novus Leisure, which operates 40 bars including Tiger Tiger, has today reported a 10.6 per cent increase in like-for-like sales for the six weeks to January 2 compared to the year before. During this Christmas and New Year period, Tiger Tiger – which operates in nine cities around the UK – reported a 11.3 per cent rise in like-for-like sales. The company particularly benefited over the festive season from advanced bookings, with a substantial increase in people booking online. The group said its figures were “in line” with trading patterns for the earlier part of the year, adding that it would have done even better if there had not been heavy snow. Its most recent opening was Kanaloa (pictured), a joint venture with Piers Adam, Nick House and Sarah Harding of Girls Aloud.

MPs call for minimum pricing and higher duty

The government is considering proposals from a cross-party committee of MPs for an increase in spirits duty and a minimum price for alcohol.  The Commons health committee presented its report on Friday recommending measures for tackling drink-related problems.  MPs recommended that the price of a unit of alcohol should be at least 40p but that setting it at 50p would prevent more people from developing health problems.  It proposed that duty on spirits and “industrial cider” should be raised but also that beer with ABV of 2.8 per cent or less should be taxed differently.  It also called for mandatory labelling of “all containers of alcoholic drinks”.

Independent operators dominate property sales in 2009

About two-thirds of properties sold in 2009 across the hotel, pub, restaurant, care and retail sectors were acquired by experienced independent operators, according to a study published today by property agents and advisers Christie & Co. It showed that only around five per cent of the individual businesses that Christie & Co sold in 2009 moved into corporate ownership, reflecting how large corporates curbed their acquisition strategies to focus on improving operating efficiencies. First-time buyers still accounted for around 34 per cent of the transactions analysed.

Sales boost for Yates’s operator

Town and City Pub Company, whose bars include the Yates’s chain, increased sales in the run-up to Christmas and the New Year. Sales were up 8.1 per cent in December year on year.

Income drops for Constellation Brands

Drinks giant Constellation Brands has reported a 47 per cent drop in net income for the three months to November 30, although the fall was not as great as some analysts had predicted. Net income was down from $83.5 million to $44.1 million. Net sales fell four per cent, which was partly blamed on the disposal of some spirits brands. Constellation Europe’s brands include Svedka vodka and, through a joint venture with Grupo Modelo of Mexico, beers Modelo, Corona and Tsingtao.

Festive cheer from The Restaurant Group

The Restaurant Group (TRG), which operates chains such as Frankie & Benny’s and Garfunkel’s, has reported that trading for the six weeks to December 27 was “good with strong like-for-like sales growth”. Although this was described as an “encouraging improvement on the same period last year”, full-year like-for-like sales still fell by two per cent. In a trading statement, TRG said that it expected to report profits “well ahead” of the top of the range of current market forecasts when it delivers its full-year results in March. The group opened 19 new venues last year and plans to open another 15 to 20 in 2010.

A happy New Year for Mitchells & Butlers

Mitchells & Butlers (M&B) performed strongly over Christmas and New Year, reporting a 3.3 per cent increase in like-for-like sales in the 14 weeks to January 2. Trade for the pub and bar operators, whose brands include All Bar One, was particularly good in the 10-day festive period, with like-for-like sales up 4.9 per cent. “The board is still cautious on the outlook for consumer spending especially in the second half of the year,” M&B said in a statement but added that it was facing “the future with confidence”.

Pub operators freeze beer prices

Charles Wells Pub Company has announced that it is absorbing price increases caused by the return of the VAT rate to 17.5 per cent to help licensees. It said the price freeze would stay in place until at least April 1, 2010, despite increases by its main supplier, Wells and Young’s Brewing Co. It also pledged not to pass on any increase in duty on beer, wine and spirits introduced in March’s Budget. Another pub company, Brakspear, announced it would not raise prices on its beer for the whole of 2010.

‘Significant’ plans for Cutty Sark

Berry Bros. & Rudd has taken distribution of Scotch whisky Cutty Sark back in-house, ending its successful two-year UK distribution agreement with Emporia Brands.  Regional business director James Steiner said the move was in advance of “significant plans” for the brand in 2010. It follows an increase in on-trade listings over the past two years while the whisky was in Emporia’s hands.

New boss at WaverleyTBS

Jonathan Townsend has taken over as managing director at drinks wholesaler WaverleyTBS after joining in September as commercial director. It follows the departure of Gordon Johncox “to pursue other interests”.  Mark Riley has been appointed as trading director with responsibility for independent free trade and national sales.  Stuart Walker has joined the group as finance director.

Marlboro launches new Red variant

Marlboro has launched a metallic “soft pack” variant of Marlboro Red, introducing a retro feel to the brand by creating the appearance of a tin with a tactile logo and “rivet” design. It was made available in 175 pubs and clubs in the UK and Ireland last month after launches in Spain, Greece and Italy.

Smirnoff supports new iPhone app

January 11, 2010

News round-up December 22, 2009 - January 5, 2010:
3D Entertainment, BrewDog, Bundaberg, Bitter Truth, Guinness

Wetherspoon in talks for 3DE late-night venues

JD Wetherspoon is in advanced stages of talks to buy 12 late-night venues from 3D Entertainment Group, the operator part-owned by club giant Luminar, according to a report in The Times. The 12 outlets are believed to be a mix of Chicago Rock Cafés and unbranded clubs, priced at about £4.3million. Wetherspoon, which has grown to 740 pubs, bought seven sites from 3D Entertainment in September. Luminar has a 49 per cent stake in 3D Entertainment, with the rest controlled by management and property group Prestbury.

Scottish brewer plans new bar chain

BrewDog, the brewery behind the world’s strongest beer, aims to open a chain of bars by the end of this year, reports Scotland’s Daily Record. Directors James Watt and Martin Dickie, both 27, said they wanted to build on the “rapid growth” of their Aberdeenshire business, whose brews include the 32 per cent ABV Tactical Nuclear Penguin as well as Punk IPA, oak-aged stout Tokyo and honey-infused ale Dogma. The company bought the vacant Marischal Bar in Aberdeen last month and plans to have bars in Glasgow and Edinburgh by the end of 2010.

HMV close to takeover of venue operator

HMV was today close to a takeover of club and music venue operator Mama Group after a rival bidder pulled out of the bidding process. Investment vehicle SMS Finance made an unsolicited £38.3million approach last month but its offer lapsed without support. HMV’s bid of £46million came after it formed a joint venture with Mama a year ago, called Mean Fiddler Group, to run 11 venues including the Hammersmith Apollo, the Garage, the Jazz Café, Heaven, GAY Bar and the Borderline in London as well as the Warehouse in Aberdeen. The buy-out would mean HMV gained control over all of Mama’s interests, including the Barfly nightclubs, Lovebox music festivals and an artist management business representing bands such as the Kaiser Chiefs and Franz Ferdinand.

Bars and pubs caught selling short measures

Almost 90 per cent of beers bought in bars, pubs and restaurants are sold short, according to trading standards officers after carrying out checks across Birmingham. The Daily Mail reports that the average drink was three-quarters of a fluid ounce (22ml) short of full, equivalent to 3.94 per cent of a pint. It concludes that this means that Britons are paying £400million too much for their pints each year.

Launch of search for Miss Bundy UK

A competition has been launched to find the face of Bundaberg Rum UK to build on the Australian rum brand’s party spirit. The search for Miss Bundy UK begins on Sunday January 24 at the Walkabout in Temple Bar, London, judged by dwink.com’s Tom Sandham, UK rum ambassador Ian Burrell and TNT magazine editor Daniel Landon. Competitors will be set a series of challenges with the chance to win £200 and a year’s supply of Bundaberg. To enter, people need to email a picture, name and contact details, along with 50 words on why they would make the ultimate Miss Bundy UK, to antoni@inspiritbrands.com.

Bitters brand enters US market

The Bitter Truth, a brand of cocktail bitters and flavourings, is set to arrive in the US later this month after its success in the UK and the rest of Europe. The products are being launched in the US in partnership with Domaine Select Wine Estates’ Classic and Vintage Artisanal Spirits Portfolio. Founded in 2006 by mixologists Stephan Berg and Alexander Hauck, The Bitter Truth will be supplying American bars with Celery Bitters, Old Time Aromatic Bitters, Orange Bitters and Lemon Bitters as well as the Bittermens Xocolatl Mole and Grapefruit Bitters. “It will be nice to have easy access to these products after searching far and wide with limited availability in the US,” said mixologist H. Joseph Ehrmann of San Francisco’s Elixir. “The quality of their bitters is superior to many products on the market today and more consistent than homemade.” 

Festival organiser nearly £1million in red

Liquidators have been called in to the company behind last September’s Pub in the Park festival, which was cancelled at the last minute. Liquidators from insolvency practitioner Wilson Field say that the UK-based Custom Made Events is in the red by £936,765, owing money to partners such as Scottish & Newcastle, Carlsberg, Budweiser Budvar, BAT and HM Revenue & Customs. According to a report in the Daily Mail, its directors Sarah Traynor, David Wilson and Simon Craig themselves lost more than £500,000 from the venture after refunding ticket-holders’ money. The festival – a celebration of British pubs – was due to take place in Greenwich Park in south-east London, featuring acts such as T’Pau and Paul Young, but it suffered from poor ticket sales, blamed on the recession.

Arthur’s Day pushes a million pints

Promotional events to mark the 250th anniversary of Guinness’s Dublin brewery led to a million pints being sold on “Arthur’s Day”, September 24, Diageo GB has revealed. More than half of licensees said that Arthur’s Day increased sales, with an additional 27 per cent of consumers drinking Guinness Draught as a result of the day. More than 11,000 point-of-sale kits were sent to licensees, including the brand’s biggest-ever text-to-win mechanic with prizes such as the chance to win a trip into space. Licensees who ordered party kits, which included mini pints, inflatable hands and other items to help create a party atmosphere, also received additional promotion via party maps on DotMobi and iPhone applications, resulting in an increase of about 76 per cent in sales.

January 5, 2010

News round-up December 15-21, 2009:
Orchid, Distil, Chase Vodka, Punch, coffee, Christmas

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 reports. 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. 

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 London 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. www.londonwinefair.com

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 of 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 becoming “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.”

December 21, 2009

News round-up December 8-14, 2009:
BBFB, Whitbread, Rum Fest, whisky, Tia Maria, Carluccio’s, Pernod Ricard

IPBartenders’ Ben Reed joins BBFB

Ben Reed, 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 period.

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 Association (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 to retire 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 business, 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 14, 2009