News round-up May 17-24, 2010:
Government legislation, Maker's Mark, Britvic, Carling, Sauza, Marston's, SAB Miller, M&B
Coalition pledge on licensed trade
The new coalition government has affirmed its commitment to banning the sale of alcohol in the off-trade at less than cost and pledged to review the Licensing Act. In a new policy document last week, it said it would keep its pre-election promise to curb the amount of cheap alcohol available in stores. It also said it would review taxation affecting beer and the licensed trade to "ensure it tackles binge drinking without unfairly penalising responsible drinkers, pubs and important local industries". Its "overhaul" of the Licensing Act is set to give local authorities and the police "much stronger powers to remove licences from, or refuse to grant licences to, any premises that are causing problems" and allow them "to shut down permanently any shop or bar found to be persistently selling alcohol to children". Other proposals that could hit the bar trade include giving councils the right to charge more for late-night licences to pay for additional policing. The government also promised to "cut red tape" to encourage bars, pubs and clubs to put on more live music.
Intense push on Maker's Mark
An intense two-week campaign begins today (May 24) in the City and east London to promote bourbon Maker's Mark as part of a £1.5million investment in the brand this year. Outdoor advertising and sampling will be ubiquitous in Shoreditch and dominate the transport hub of Liverpool Street Underground station. Sampling will also take place at some of the area's bars from now until July while sampling at art galleries will also drive consumers to top venues including All Star Lanes, Loungelover and Cargo where they can buy a discounted Maker's Mark cocktail. A pop-up installation in the form of a large vending machine, dubbed Maker's + the Machine, will house a professional bartender sitting inside, creating and serving Maker's Mark cocktails. The campaign by Maxxium UK aims to reach £1million people and may be rolled out to other locations across the UK.
Profits rise for Britvic
Britvic has announced an increase in profits and the acquisition of French soft drinks company Fruite. For the 28 weeks to April 11, revenues increased by 4.6 per cent to £505.3million and pre-tax profits rose by 39 per cent to £27.8million. The group reported that it had taken market share across its key brands and that trading in the second half of the year so far was "robust". Last week, it also raised up to £21.7million through a share placing to help fund the €237million purchase of Fruite.
Carling drives people to bars
Molson Coors UK is sending two million vouchers to households this month in a bid to drive one million people back to their local bar, pub or club. Direct mail is offering a free pint of Carling at a nearby venue through a personalised invite from the licensee. Point-of-sale packs have been sent out to all outlets participating in the promotion, which runs until June 21. It is part of a series of Molson Coors UK activities throughout the summer that will help the licensed trade to attract more customers through the door and stay longer. These include Be Part of It 2010 and the Pint Right Programme, which kicked off in March 2010 and includes in-bar hands-on "Cellar-to-Glass" training to help all staff master the perfect serve and an on-going support plan to ensure bars serve great beer all the time.
Sauza shakes it up in bars
Maxxium UK is to launch a new promotion next month to boost the presence of Sauza tequila in bars and pubs across the UK. Running under the banner of "The Summer of the Sauza Shaker", it invites customers to "shake their own" Margaritas in venues using an oversized 750ml cocktail shaker. Each Shaker has a recommended price of £12, delivering around £7 profit to the bar per shaker sold. The shakers will be delivered as part of a kit to participating bars who will also receive point-of-sale material including two strut cards and 10 Sauza Shaker tent cards. Bars will receive the kits when they buy one case of Sauza Blanco or Hacienda Reposado. Bartenders will put Sauza, ice, Bols triple sec, freshly squeezed lime juice and sugar syrup into the shaker and hand it over to the customer to shake and serve at the table themselves. They can also be used with Funkin Margarita pouches to make the serve easier.
Sales up at Marston's bars
Marston's has reported that revenue and profits were up, particularly at its managed pubs and bars, for the half year to April 3. Overall, revenues were up 0.6 per cent at £309.2million and underlying operating profit edged up from £65.4million to £65.5million. Like-for-like sales in the Inns and Taverns managed estate, which includes Pitcher & Piano, were up 1.4 per cent despite Easter Sunday and Monday falling into the second half of the financial year in contrast to 2009. Its beer company had a "strong" first half while the rate of decline in its tenanted estate has slowed.
Beer giant increases revenues
Brewer SAB Miller, whose brands include Grolsch, Pilsner Urquell and Peroni, has reported a four per cent rise in revenues for the year to March 31. They were four per cent higher at US$26.4billion, with improved margins "driven by robust pricing and cost efficiencies". The group said that trading conditions during the year had been "very difficult" but it had performed well, believing it is "well positioned to take advantage of any improvement in trading conditions".
Beer sales in UK fall further
The new government is being urged not to increase duty in its first Budget next month after new figures revealed a further fall in beer sales in the UK. According to the latest quarterly beer barometer from the British Beer & Pub Association (BBPA), on-trade beer sales fell by 8.8 per cent in January, February and March - 6.9 million fewer pints. It was partly caused by snow and freezing conditions at the start of the year. However, supermarket and off-licence beer sales rose by 0.5 per cent during the same period. The BBPA called on the government not to increase pressure on the trade in its Budget on June 22.
M&B reports expansion and profits increase
Mitchells & Butlers, which operates managed pubs and bars such as All Bar One and O'Neill's, plans to increase investment in expansion of its estate by between £20million and £25million by the end of this year after reporting an increase in half-year profits. The money will be focused on growing its food-led key retail brands such as Harvester and Toby, bringing total capital expenditure for the full year to around £160million. M&B reported that turnover was up 1.3 per cent for the half year to April 10 to £1,037million while pre-tax profits were up by 55.3 per cent to £73million. Like-for-like sales were up 1.9 per cent in the most recent nine-week period with a continued lower level of promotional spend.
Posted: May 24, 2010
News round-up May 10-17, 2010:
Luminar, Distil, molecular mixology, Inspirit Brands, Hayman's, Kopparberg
Luminar reports on profits slump
Luminar Group, the nightclub operator whose brands include Oceana and Liquid, has blamed youth unemployment, poor weather and a “highly competitive environment” for a fall in profits. After warning earlier this year that trading was down, it announced that pre-tax profits were down from £20.3million to £4.4million for the year to February 25. Sales were down by 9.9 per cent on a same outlet basis across its 85 clubs, including a 15.4 per cent decline in the second half of the year resulting from lower customer admissions. The company also announced last week that finance director Robert McDonald has quit as finance director and will be leaving at the end of next month to “pursue other interests”. He joined just over a year ago from Punch Taverns. He will be replaced by Philip Bowcock, previously group financial controller of Barratt Developments, who joins on June 1.
Drinks lined up for Distil
The Distil drinks exhibition and the London International Wine Fair open on Tuesday, running for three days until Thursday (May 20). Distil features tastings from Mark Ridgwell’s Taste and Flavour, IPBartenders’ cocktail theatre, tequila tastings and the Drinks International Cocktail Challenge. Brands and companies exhibiting include Aberdour, Belvedere, Bibendum, Ceylon Arrack, Chopin, El Dorado, Glencadam, Four Roses, Hayman’s, Gin Mare, Goldschläger, Myers’s, Ocho, Sacred, Sobieski, Sputnik, St Germain, Thunder Toffee, Ypióca and Zignum mezcal. Mexican trade body ProMexico is bringing together a number of tequila producers. More information and registration at www.distil-london.com.
Ex-Greene King boss heads pubco
David Elliott, the former managing director of Greene King Pub Partners, has taken over as chairman of the pubs arm of Cardiff-based property management company Quercus Capital. He plans to help Quercus Pub Company to take on more than 200 leased or tenanted pubs over the next 12 to 18 months in south Wales and the south of England. He left Greene King in January after 11 years at the group, during which time he grew the leased and tenanted business from 620 to more than 1,300 pubs.
Molecular mixology competition
Bartenders are being challenged to be creative and use their imagination as part of a new “molecular” cocktail competition organised by El Dorado rum and supplier MolecularMixology co.uk. To enter, they have to come up with an original “concept” that covers their “vision” for the drink and a simplified method of how to create it. This does not have to include a full recipe. It must include El Dorado and use one of the ingredients from a molecular mixology kit supplied to entrants by MolecularMixology.co.uk, the supplier set up by Matt Wilkinson and Andrew Mullins of Fling International. The kit contains agar, sodium alginate, calcium lactate, methyl cellulose and xanthan gum. The deadline for entering the London heat is May 31 and it will take place at Wax Jambu in Islington, north London on June 15. The 10 most creative concepts will go through to the next round where they will be asked to create two molecular cocktails. Additional heats will be held in the north in August and Scotland in October. To enter, email competition@molecularmixology.co.uk.
Enterprise refinances for future growth
Pub company Enterprise Inns has announced that it has successfully refinanced its bank debt, signing a new facility for £625million. It follows a slump in profits for the six months to March 31 during what chief executive Ted Tuppen called “very challenging trading conditions across the pub sector”. Earnings (EBITDA) fell nearly 10 per cent to £204million while the company reported it raised £135million from disposals during the period. Tuppen added: “We expect trading conditions to remain challenging during the second half of the year and we sincerely hope that the new Government will take steps to recognise and support community pubs and their vital role in British society.”
Sloe gin and bitters added
Love Drinks, the distributor of premium drinks, has added to the ranges of two of its brands. Hayman’s Sloe Gin is made with wild English sloe berries that have been steeped for several months with Hayman’s Gin before being blended with natural sugar to create a rich ruby-red liqueur with smooth and intense bitter-sweet fruit flavours. Love Drinks is promoting it for cocktails such as the Blackthorn, Sloe Royale and Sloe Fizz. It has also added Creole Bitters, a fiery anise-tinged cherry-red liquid, to its bitters range The Bitter Truth.
Inspirit grows portfolio
Premium drinks specialist Inspirit Brands is to add Goldschläger, Sobieski, Myers’s Rum and Ypióca to its portfolio after being acquired by drinks company Global Brands. The brands will transfer from Global’s core business which will then focus on products such as VK, Corky’s and Kick Energy and its new wine portfolio. Inspirit, which already handles 14 brands including El Dorado, Four Roses, Opal Nera, Ocho, St Germain and No 3 gin, continues as Global’s premium brands arm.
Pomegranate juice extends range
Pomegreat, the pomegranate juice brand, has added more flavours to its range with the introduction of beetroot and cherry. It complements the original pomegranate, blueberry and raspberry versions.
New campaign for Kopparberg
Kopparberg Cider has launched a new integrated advertising and marketing campaign that links the brand into music and media arts. As well as press, outdoor, cinema and online ads, it covers social media platforms, exclusive music via Spotify and “real world” events including Kopparberg Klash – a series of five competitive events celebrating alternative music, photography, style and film. A new website, www.findkopparberg.com, offers content and information to support the activity.
Posted: May 17, 2010
News round-up May 4-10, 2010:
Punch, AB InBev, Molson Coors, Wetherspoon, Diageo
New CEO appointed to Punch
Punch Taverns has appointed Ian Dyson, finance director at Marks & Spencer, as its new chief executive to replace Giles Thorley. He was previously finance director of Rank Group and, before that, held finance roles at Meridien Hotels & Resorts and Hilton Group. Thorley announced last month that he was resigning after nine years at the helm the UK’s biggest pub company, which owns over 7,100 pubs across its leased and managed estates.
Limited release from Woodford Reserve
The latest in a range of limited-release Master’s Collection bottlings from Woodford Reserve master distiller Chris Morris has reached the UK. It is called Seasoned Oak, named after the weathering of the oak staves used to make the casks that this whiskey is matured in. The staves were left outdoors to season for five years – more than Woodford Reserve’s standard nine-month seasoning. The batch of just 316 remaining bottles are being sold this month at selected retailers including Selfridges and Harvey Nichols.
AB InBev reports beer volume rise
Beer volumes for Anheuser-Busch InBev UK, the company behind Budweiser, Beck’s and Stella Artois, improved by 1.3 per cent in the past three months, outperforming the market where volumes declined 3.5 per cent. Stuart MacFarlane, president of AB InBev UK, called it “a great result, even more so in this challenging environment”, adding that this had been “exacerbated by record beer duty increases”. Overall volume growth for the business globally increased by nearly one per cent in the quarter and revenue was up nearly two per cent to US$8.3billion (£5.5billion).
Cautious outlook from JD Wetherspoon
JD Wetherspoon has admitted it has become “slightly more cautious about the outlook” for the business for the coming year because of tax and duty increases, higher interest charges and the risk of more subdued consumer expenditure. In a trading statement last week, it reported that like-for-like sales for the 13 weeks to April 25 were down 0.8 per cent although total company sales over the same period increased by 3.6 per cent. These figures have contributed to a 0.2 per cent fall in like-for-like sales for the 39 weeks to April 25, during which time company sales rose by four per cent.
Molson Coors links with Gallo
Molson Coors UK has formed a partnership with E&J Gallo Winery to expand its range of drinks brands available through its One Stop Shop Service. It will now list three brands from E&J Gallo’s core UK range – Gallo Family Vineyards, Barefoot and Turning Leaf – as well as Winemaker’s Seal from the global range and Mirassou and Rancho Zabaco from the premium portfolio.
Club and bar specialists plan gastropub
A new gastropub, the Jam Tree, is being developed in Kensington, London, by bar and club entrepreneurs Ashley Letchford, Yann Roberts and Sam O’Riordan. Formerly called the Priory House pub, the leasehold property was sold by property agency Christie & Co. Letchford’s background includes setting up Gigalum, Inigo and the refurbished Clapham Grand and he is currently a director of Archangel in Kensington and general manager of Aquum in Clapham. Roberts’ track record includes opening Pacha London and The White House in Clapham. O’Riordan, who is the manager and brother of DJ Judge Jules, has also worked in hospitality including the Ritz, the Savoy and Westbury Hotel plus two years working for his uncle, Rick Stein, in Padstow, Cornwall.
Win a World Cup party for your bar
Moy Park Foodservice is celebrating its sponsorship of this summer’s FIFA World Cup by offering licensees the chance to win a “World Cup Kick-Off Party” for England’s opening game on Saturday June 12. The prize is £100 of Moy Park Foodservice sharing platter products, £150 towards additional food and drink, six bottles of sparkling wine and a point-of-sale kit of balloons, bunting, posters and tent cards. Licensees can enter at www.moyparkfoodservice.com/worldcup where they can also apply for point-of-sale kits comprising posters, tent cards, strut cards, bunting and mini flags to decorate sharing platters.
Training series starts in Scotland
Training company Learnpurple has unveiled a programme of events at bars and hotels in Edinburgh and Glasgow aimed at providing practical skills for people working in bars, pubs, restaurants and hotels. Called Learning Bites, they are being held from this week onwards until August at Blythswood Square Hotel and Radisson Blu in Glasgow and Hotel Missoni and Tigerlily in Edinburgh. Topics covered include customer service, managing and motivating, and being a first-time manager. Details about the seasons, which cost £95 plus VAT, at www.learnpurple.com.
Diageo predicts single-digit growth
Drinks giant Diageo continues to predict “low single-digit” organic growth in its operating profits after reporting a two per cent rise in net sales for the nine months to March 31. In the last three months of that period, organic net sales growth was 12 per cent. Chief executive Paul Walsh said the group had seen “some signs of recovery, albeit fragile in the mature markets and stronger in the emerging markets”. He added: “Consumer trends remain difficult to predict, especially in the mature markets. Our guidance for low single-digit organic operating profit growth for the full year is unchanged and reflects our successful management of a tough environment in the first half and our continued ability to build on our strengths and increase marketing investment behind our brands.”
NCPLH training goes online
Training and qualification for the National Certificate for Personal Licence Holders (NCPLH) in England and Wales is now being delivered via the web by PLH Online. After a year delivering the Scottish certificate for personal licence holders, it means that users can achieve full certification in accordance with both the Licensing (England and Wales) Act 2003 and the Licensing (Scotland) Act 2005. The modules are approved by the Scottish Qualifications Authority which is accredited to award the Scottish Certificate for Personal Licence Holders (Off-Sales and On-Sales) and the QCF Level 2 Award for Personal Licence Holders in England and Wales. PLH Online has been developed in association with bar and restaurant operator Montpeliers (Edinburgh).
Posted: May 10, 2010
News round-up April 26-May 4, 2010:
Whitbread, Beefeater, Greene King, C&C, Lambrini, Bay Restaurant, Coca-Cola Enterprises, Disaronno, Pernod Ricard
Whitbread upbeat after profits rise
Investment in food-led pubs and continuing growth in coffee shops contributed to an increase in annual profits, Whitbread has reported. Underlying pre-tax profits rose by 6.6 per cent to £239.1million for the year to March 4. Total turnover was up 7.5 per cent to £1,435million although overall like-for-like sales for the year fell by half a per cent. However, Whitbread said like-for-like sales improved in the fourth quarter by 3.1 per cent. Costa continued to outperform the rest of the group, reporting like-for-like sales up 5.5 per cent for the year. The group added that the first seven weeks since the start of its financial year in March had started well.
Sales up at Greene King managed pubs
Managed pubs run by brewer and operator Greene King have reported an upturn in trade, according to a trading statement last week. The managed estate saw like-for-like sales rise by nearly four per cent for the 49 weeks to April 11 while its Belhaven pubs increased like-for-like sales by 5.6 per cent over the same period. Volumes of Greene King’s own beers were up nearly four per cent while Belhaven Best volumes rose by more than 15 per cent.
Lambrini Ladies emerge for election
Halewood International has been running a major PR and social media initiative for its Lambrini brand in the run-up to the General Election. It was based on the insight that, while previous general elections have been driven by the likes of Mondeo Man and Worcester Woman, this week’s election will be decided by more than four million so-called Lambrini Ladies. Halewood commissioned a study by market research firm Opinion Matters with analysis by Professor Steven Fielding, Nottingham University’s professor of political history and director of the Centre for British Politics, School of Politics and International Relations. The study identified more than four million British young, working women and mums aged 18 to 34 who had views but did not vote. It prompted national media coverage of the debate over the disenfranchised “Lambrini Ladies”.
New Beefeater gin launched for summer
A limited-edition Beefeater London Dry Summer Gin has been launched with extra floral botanicals added to create a spirit ideal for summer picnics and barbecues. It has been created by Beefeater’s legendary master distiller, Desmond Payne, and contains elderflower, hibiscus and blackcurrant botanicals on top of the original Beefeater recipe. It is available for £17.99 at Harvey Nichols, Selfridges, Fortnum & Mason and Harrods, with a special bottle covered in soft floral images. Desmond commented: “I wanted to create a gin that would be ideally suited to lighter summer drinks and take advantage of those rarer botanicals that are less available to remind consumers of the wonderful aromas and tastes of summer in a gin.”
Four in five “pre-load” before night out
Increasing numbers of people are drinking at home before a night-out because of the availability of low-price alcoholic drinks in the off-trade, according to a survey from corporate advisory firm Zolfo Cooper. Eighty per cent of people drink at home before going out, with “pre-loading” most common with people aged 18 to 34. The research also showed that 44 per cent fewer people were drinking in bars and pubs than six months ago because it was cheaper to buy alcohol in shops. However, Zolfo Cooper also found that so-called “pre-loaders” spent a third more when they do go out than people who go out to a bar for their first drink.
C&C sells spirits to William Grant
C&C Group has announced that it is selling its spirits and liqueurs division to William Grant for €300million (£260million). The business includes classic liqueur Frangelico, Irish whiskey Tullamore Dew and Irish Mist liqueur. The group, which owns the Magners cider business, said proceeds from the sale would be used to cut debt and for “general corporate purposes”.
Bay Restaurant Group “up for sale”
The remains of Robert Tchenguiz’s bar and restaurant empire, which includes Slug and Lettuce, Ha Ha Bar & Grill and La Tasca, have been put up for sale by the lending banks that took control of them in the wake of the financial crisis, according to a report in the Telegraph. The Bay Restaurant Group was allegedly offered last week to several potential buyers for an estimated £70million by its owners Kaupthing, the Icelandic bank, and Commerzbank, the German bank.
CCE offers TV prizes for World Cup
Coca-Cola Enterprises is offering licensees a chance to win one of 100 40-inch Sony TVs for their bar in a trade promotion in the run-up to the FIFA World Cup. Running across cases of Coca-Cola and Diet Coke, the prizes are available to win instantly through special pack messages on the bottom of the case tray. Limited-edition World Cup sleeves will also feature on all Coca-Cola 330ml bottles.
Major TV campaign for Disaronno
Disaronno, the non-cream liqueur, is launching a new national advertising campaign which will include its first-ever burst of summer TV advertising. Doubling the brand’s annual media spend, the “Open the Possibilities” campaign will focus on Disaronno’s style credentials and also promote its versatility. A second part of the TV advertising later in the summer will promote four key serves: Disaronno Sour, Disaronno Cranberry, Disaronno OJ and Disaronno Ginger.
Heineken to run World Cup promotion
Heineken UK is to launch a World Cup promotion in more than 13,000 bars this month under the banner of “Who wants to be a football millionaire?”. Fronted by Who Wants To Be a Millionaire presenter Chris Tarrant, it will be featured across five beer and cider brands: Foster’s, John Smith’s, Kronenbourgh 1664, Strongbow and Bulmers. The campaign, which will also run in the off-trade, is being supported by promotional kits supplied via logistics specialist EC Group.
Venue announced for bar design awards
The venue for this year’s Restaurant & Bar Design Awards in June has been confirmed as Victoria House in Bloomsbury Square in central London. The event is due to be attended by the UK’s top designers and operators of bars and restaurants to find out the winners from a shortlist announced in March. It takes place on the evening of June 22. The awards were previously due to take place at Westfield Stratford City, overlooking London’s Olympic Park, but this is no longer available. Details at www.restaurantandbardesignawards.com.
Bartenders invited to rum-blending challenge
Lamb’s Spiced Rum is continuing its quest around the regions to find the “Master Of The Blend” following on from a 10-city tour last year. Hosted by newly appointed brand ambassador Rob Worsley, events are being held in Edinburgh, Glasgow and Birmingham throughout May and June inviting bartenders to take part in a rum blending competition, with a regional final set to take place this summer. The first event will be held in Edinburgh at Tonic, on May 20. For further details, contact maxine@rumpus-comms.com.
Pernod Ricard hit by European droop
Pernod Ricard has reported that turnover fell by 12 per cent in Europe to €1,686million (£1,462million) in the three months to the end of March, blaming difficult conditions in the UK, Ireland and Spain. However, consolidated sales globally for the quarter achieved a “marked upturn”, the drinks giant revealed, rising by 14 per cent to €1,538million (£1,331million). Its brands include Beefeater, Jameson, Havana Club and Absolut.
Marketers show more caution
Drinks companies are taking more care over how they market alcoholic drinks, according to the latest figures from industry watchdog The Portman Group. It has revealed that there was a year-on-year rise of 40 per cent in the number of proposed campaigns, packaging and other initiatives that were sent to it for vetting. More than 356 proposals were examined last year compared to 250 in 2008.
May 4, 2010
Industry news April 19-26, 2010:
Budweiser, Punch, Blue Moon, Slug and Lettuce, Kopparberg, Aspall, VK, Bloom Gin, Sidekick, Mixxit, Freedom
AB InBev to launch 4% Bud
Anheuser-Busch InBev UK is to launch Budweiser Brew No “66”, an “ultra refreshing” beer specifically developed to appeal to consumers in their early 20s. It is a lightly carbonated lager brewed with a touch of sweetness for a smooth, easy taste at four per cent ABV. It follows the launch of AB InBev UK’s four per cent ABV beers, Beck’s Vier and Stella Artois 4%. It is due to launch this summer, backed by a multi-million-pound campaign. AB InBev UK president Stuart MacFarlane said the launch followed a “phenomenal” year for Budweiser. “Budweiser grew volume sales by 19 per cent and market share by 18.9 per cent [in the UK]. This is exceptional growth and Budweiser is on track for another fantastic year in 2010.”
Punch positive despite profit drop
The UK’s biggest pub company, Punch Taverns, last week blamed a decline in half-year profits on increased financial support for licensees and curbs on beer price increases. In the 28 weeks to March 6, it reported pre-tax profits of £66million, a fall of 19 per cent compared to the same period last year. The company said: “Some of the decisions we have taken, such as increasing financial support to our lessee partners and limiting beer price increases, have put pressure on short-term profitability. However, we are confident that these decisions will provide the platform for improved profitability in the longer term and it is pleasing to see that our interim results are in line with our expectations.” Punch added that trading during the Easter holiday was “good and slightly ahead of last year in the managed estate”.
Draught Blue Moon introduced to UK
Molson Coors UK is launching Draught Blue Moon in selected London bars this month after its “phenomenal” success in the US. The 5.4 per cent ABV beer, which is currently available in bottles in the UK, is brewed with oats for creaminess and spiced with a combination of orange peel and coriander. The perfect serve is an orange slice or wedge to bring out the subtle flavours of the orange peel and coriander. It will be available in kegs of 20 litre, kegged at the Burton-on-Trent brewery, with a ceramic tap handle imported from the US to give maximum stand-out in outlet and reinforce the North American craft beer credentials. Draught Blue Moon will initially be launched in 100 London outlets including launch partners Fuller’s, Mitchells & Butlers and a selection of hand-picked independent on-trade outlets.
UK launch for new alcoholic ginger beer
Cider of Sweden, the UK arm of Sweden’s Kopparberg Breweries, is launching Frank’s Alcoholic Ginger Beer, created specifically for the UK market. It marks the company’s first new brand launch outside of its Kopparberg Cider range. It is a blend of traditional Swedish lager and ginger which, when brewed together, produce a refreshing lager with a spicy undertone. Available in 500ml bottles, Frank’s Alcoholic Ginger Beer has an ABV of four per cent and can be served straight or over ice in a glass.
Mobile promotion for Slug and Lettuce
Slug and Lettuce, part of Town & City Pub Company, has launched a consumer promotion using mobile vouchers for the first time. The activity, which enables customers to download vouchers based on their location, has been put together with mobile phone application Vouchercloud. Available via an iPhone and an iPod Touch, the vouchers feature a unique redemption code that bar staff use to apply to each bill. Lisa Stoddart, head of online for Town & City, said the system, which is self-administered, “enables us to bring offers direct to both new and existing customers”.
New look for Aspall cider
Cider maker Aspall is introducing a contemporary new chrome font into the on-trade as well as an additional style of branded glassware. The developments are part of a £1million investment in the brand announced last month to support continued expansion into top-end bars. The font is designed by Cornelius, the suppler of beverage dispense and cooling equipment, and features the iconic Aspall knight at the base of the unit and on the dispense pull. The badge displays the cider’s 100 per cent apple juice content to highlight a key feature of the brand. The new glassware, available as both half pint and pint, has tall sloping sides to complement the existing Aspall goblets.
VK adds lemon to range
Global Brands is investing £400,000 to launch a new fruit flavour for its ready-to-drink brand, VK. Called VK Lemon, it is made with real fruit juice and has been developed in line with growing consumer demand for fruit-flavoured RTDs. Over the next three months, Global Brands will support the launch with digital media, a 60-strong promotions team and point-of-sale material including bar runners, T-shirts and VK display towers. It has already secured listings with Molson Coors, WaverleyTBS, Matthew Clark, Carlsberg, the NUS, JD Wetherspoon and Punch.
Vanquish adds Bloom Gin to list
Bloom Gin has been added to the brand management portfolio of luxury drinks specialist Vanquish. The premium London Dry Gin is made by G&J Greenall to a recipe created by its master distiller, Joanne Moore. It has the key botanicals of juniper, coriander and angelica plus cubeb berries, camomile, honeysuckle and pomelo (Chinese grapefruit). It is distributed exclusively by Vanquish, which has introduced other premium products into the UK on-trade such as St Nicholas Abbey 10-year-old rum.
Investment for Sidekick
Halewood International is to invest heavily into the advertising of its Sidekick brand after a major redesign and repositioning. Available in 10 flavours in 500ml bottles with an ABV of 14.5 per cent, the range is increasingly being used by consumers as part of a long drink or cocktail pitcher as well as a shot. This is reflected in the new strapline, “Mix’d Your Way”, plus point-of-sale and marketing collateral featuring serving suggestions for the on-trade. Halewood has also reported the biggest-ever growth in sales for its ready-to-drink brand VS since it launched in 2000. Bucking a 17 per cent decline in RTDs, VS is enjoying growth of 25 per cent.
Relaunch for Mixxit website
Maxxium UK is relaunching the website for its Mixxit training and education programme to improve mixed drinks and cocktail standards in both the on-trade and at home. Hundreds of new recipes have been added at www.mixxit.co.uk along with instructions for creating the perfect serve. It also now features newer brands in Maxxium UK’s portfolio including Courvoisier, Maker’s Mark and Jim Beam. It is part of a £1.1million investment in Mixxit.
New draught lager from Freedom
Freedom Brewery has expanded its range of hand-crafted English draught lagers with the introduction of a new four per cent ABV lager. Called Freedom Four, it is an easy-drinking Helles Pale lager, building on the success of Freedom’s Organic, Pilsner and Organic Dark lagers. It is available in 50 litre kegs along with point-of-sale material and glassware.
Study reports on “binge-drinking”
One in 10 people on a night out said they planned to drink the equivalent of 40 units or more of alcohol before they went home, according to a survey of drinkers in Manchester, Liverpool and Chester on Friday and Saturday nights. Researchers from Liverpool John Moores University reported that 15 per cent of men and four per cent of women expected their total alcohol intake would equate to more than 40 units before going to sleep. The study was based on a series of interviews, breath tests and assessments of the subjects’ levels of drunkenness.
April 26, 2010
Industry news April 12-19, 2010:
Vedett, Coffer Peach, Tuborg, Lamb’s Spiced, election, rum, Cinzano, Brakspear, M&B, Dooley’s, whisky
Draught version of Vedett launched
Vedett is to launch a draught version of its imported premium lager across bars nationwide. Initially available across Orchid Group’s 13 Living Room bars as well as London’s Bar Music Hall, Vedett draught will be rolled out across top-end independent outlets around the country from late April. The launch has been driven by the success of bottled Vedett. Its brewer, Duvel Moortgat, said the move would see it challenge brands like Peroni and Staropramen with its increased reach.
Sales dip by 0.4 per cent
The UK’s top bar, restaurant and pub groups saw a 0.4 per cent fall in like-for-like sales in March compared to the same month last year, according to aggregated trading figures in the latest Coffer Peach Business Tracker survey. Total sales for the month were 0.1 per cent ahead of March 2009. February saw a 1.3 per cent increase in like-for-like sales. The survey is based on 15 major operators including Novus Leisure and Mitchells & Butlers.
Tories pledge overhaul of licensing
The Conservatives have pledged to ban the off-trade from selling alcohol below cost if they are elected, according to the party’s election manifesto. They confirmed that they would “overhaul” the Licensing Act, adding new measures such as allowing local councils to charge operators more for late-night licences to pay for extra policing. Authorities would also be given stronger powers to remove the licences of problem premises. The manifesto, launched last week, stated: “Under Labour’s lax licensing regime, drink-fuelled violence and disorder are a blight on many communities.”
Labour has already promised to curb below-cost selling if elected while the Liberal Democrats also said they backed a “ban on below-cost selling and are in favour of the principle of minimum pricing”.
Women triumph at Akvinta competition
Carolin Weise of One Aldwych and Vanina Stanek of Theo Randall at the Intercontinental Hotel Park Lane came first and second respectively with their Pink Parrot and La Flora cocktails made with Akvinta vodka at the London heat of the UK Bartenders Guild Akvinta Grand Prix National Cocktail Competition. It was held in the Rockwell Bar at the Trafalgar Hotel in Trafalgar Square last week. The next two heats are at the Pennyhill Park Hotel in Surrey on April 20 and at the Blue Dog in Glasgow on April 27. The final will be in London on May 11.
Lamb’s Spiced challenges bartenders
Lamb’s Spiced Rum is continuing its quest to find a regional “Master Of The Blend”, following on from a 10-city tour last year. Hosted by newly appointed brand ambassador Rob Worsley, the brand’s team will be visiting Edinburgh, Glasgow and Birmingham throughout May and June inviting local bartenders to take part in their rum blending competition, with a regional final set to take place this summer. The first event will be held in Edinburgh at Tonic on Thursday May 20. For details contact maxine@rumpus-comms.com.
Tuborg blitzes towns and cities
An advertising and marketing campaign is being launched next week to drive sales of Tuborg beer, including branded vehicles taking people round bars and pubs in nine towns and cities. Carlsberg UK’s £2million Urban Blitz activity emphasises the brand’s links with live music, taking place over four weeks in Bristol, Cardiff, Edinburgh, Leeds, Newcastle, Northampton, Nottingham, Reading and Sheffield. Tuborg Tuk-Tuks – motorised rickshaws – will transport drinkers to different outlets, with drivers handing out coupons worht £1 off their next Tuborg.
New booklet supports rum campaign
A pocket-size booklet about the rums of the Caribbean has been launched by the West Indies Rum & Spirits Producers Association (WIRSPA) as part of its True Rum campaign. Called The Book of Discovery, it contains information on the best rums from the region plus cocktail recipes. It is being distributed to the trade this week. Copies can be requested via sabina@brayleino.co.uk.
Leeds and Edinburgh bars sold
The leasehold interests of Bar Baja in Leeds and the Ivory Lounge in Edinburgh have been sold by TCG Acquisitions, the managed pub company owned by private equity group Alchemy Partners. They have been bought for undisclosed sums by JD Wetherspoon which is currently rolling out its core pub concept as well as Lloyds No 1.
Redesign for Cinzano
Gruppo Campari is to roll out a new design for Cinzano, unveiling a new look to revitalise its image and create a more contemporary and approachable positioning. Across Cinzano Bianco, Cinzano Extra Dry and Cinzano Rosso, it introduces simpler but sophisticated label graphics and a contemporary bottle shape focusing on rounded and curved lines. Tina Martin, the brand’s marketing manager at UK distributor Cellar Trends, said: “The trend to classic cocktails, in which vermouth is a key ingredient, has revived the fortunes of the vermouth sector recently and the new designs will enhance Cinzano’s shelf appeal and value perception.”
Board shake-up at Brakspear
Pub and brewer Brakspear is making senior management changes in advance of the departure of three directors. Chief executive Don Bridgman is retiring in September, to be replaced by current commercial director Tom Davies. Property director Tom Verey retires from the board at the end of this month after 24 years of service but will remain with the company for a further year to oversee the company’s property development programme. Jim Hill, finance director and company secretary, has left the company after nearly 33 years. Bridgman will assume responsibility for the finance function while a new chief financial officer is recruited. Martin Challis, former managing director of pub operator JT Davies & Sons, joins the Brakspear board next month.
M&B “turns down offer” for bars
Mitchells & Butlers has turned down more than one offer to buy its All Bar One and Browns chains of bars, according to a report in The Times. It is believed that private equity groups have shown interested in the businesses made up of 14 Browns and 38 All Bar Ones. Last month, M&B announced a focus on food-led outlets, concentrating on expanding its six food-led brands: Toby Carvery, Crown Carveries, Harvester, Sizzling Pub Co, Premium Country Dining and Vintage Inns.
Marketing drive for Dooley’s
Dooley’s Original Toffee & Vodka has embarked on its biggest-ever direct marketing campaign, developing a new consumer lifestyle magazine called Toffee Times. It was distributed last week to one million households across the UK, targeting women aged 24 to 40 years old. It features articles on lifestyle, cocktail ideas and competitions, such as a chance to win Dooley’s tipper glasses. It is the first in a number of marketing initiatives in 2010 for Dooley’s as the brand looks to continue its steady growth.
Whisky exports at record levels
Global exports of Scotch whisky reached record levels in 2009 despite the economic downturn in some major markets, according to annual figures published last week by the Scotch Whisky Association. Exports rose by three per cent in value to £3.13billion, contributing £99 every second to the UK trade balance. Export volumes increased by four per cent worldwide, with the equivalent of 1.1billion 70cl bottles of Scotch whisky shipped.
Eclectic bosses step up charity drive
Eclectic Clubs and Bars, operator of Po Na Na and Sakura venues, has embarked on a series of fund-raising initiatives in support of the Cystic Fibrosis Trust, its official charity for 2010. It raised £10,000 at a dinner and charity auction at its Chelsea club and bar Embargo59 in March while this Sunday managing director Reuben Harley and marketing manager Nikki Ritchie aim to raise a similar amount by running the London Marathon.
World’s top sommelier named
Gerard Basset, owner of Hotel TerraVina in Hampshire and technical director of the Academy of Food & Wine, has won the title of the World’s Best Sommelier. He beat 53 sommeliers in the competition, organised by the Association de la Sommellerie Internationale in Chile last week. French-born Basset was one of the founders of the Hotel du Vin chain and has the distinction of being the only person in the world who has the title of Master of Wine and Master Sommelier and has the Wine MBA.
April 19, 2010
News round-up April 6-12, 2010:
Cider, Southern Comfort, Marston's, Aspall, Malibu, Morgan's Spiced, BII, cava
Labour pledges to restore cider duty rise
The government is to reduce the 13 per cent rise in duty on cider but has warned that it will re-instate the increase if it wins the election. It introduced a rise of 10 per cent above the rate of inflation in the Budget but was forced to shelve it because there was not enough time to get it onto the statute books before Parliament was dissolved last week. The duty rise will stay in place until June 30 when it will go back down to two per cent above inflation – in line with beer – but Labour said it would restore the full rise if it was returned to power. Conservative leader David Cameron suggested his party had alternative proposals for focusing duty rises on higher-strength ciders.
New look for Southern Comfort
Bacardi Brown-Forman Brands is to start rolling out a new bottle design for Southern Comfort next month. The new look draws on the brand’s heritage, dating back to its creation in 1874 in New Orleans. The label includes the fleur de lis symbol of New Orleans and filigree illustrations inspired by the wrought-iron balconies found in the French Quarter. High embossing and gold accents provide a premium finish.
Food helps boost Marston’s sales
Like-for-like sales at Marston’s managed houses were up 1.4 per cent, boosted by demand for food, the brewer and pub operator has reported. Its tenanted and leased division saw like-for-like profits drop by 4.6 per cent over the period of 26 weeks to April 3, but this was an improvement on January’s figure of 4.9 per cent. Like-for-like food sales were up 2.5 per cent and like-for-like wet sales edged up by 0.5 per cent. While volumes of its own beers were flat, premium ales were up four per cent. The company added that trading over the Easter weekend was “slightly ahead of last year”.
Cocktail campaign for Malibu
Pernod Ricard UK is supporting a new ad campaign for Malibu with a cocktail-based promotion in the on-trade. Advertising across TV, radio and online features Radio Maliboom Boom, depicting two DJs broadcasting Caribbean music around the world. A new Malibu cocktail shaker will be distributed to the trade for handing out to customers so they can make their own cocktails at the bar. There will be 55,000 shakers sent to 500 bars along with cocktail recipes.
Luxury variant for Russian Standard
A new luxury version of Russian Standard vodka has been launched into the on-trade called Russian Standard Gold. It is smooth and rich with subtle sweet tones, suitable for drinking on the rocks or mixed. Distributor First Drinks Brands said it was developed to meet demand from the gift market with no plans to launch it into the on-trade.
Aspall adds to cider range in on-trade
Cider maker Aspall has introduced two new formats of its brands for the on-trade. Perronnelle’s Blush and Aspall Draught Suffolk Cyder are now available in 330ml bottles. They have the same design as the 500ml bottles but are shorter, making them easier to store in a back-bar fridge. Aspall is also investing more than £1million in revamping the branding for its four-strong range of premium ciders, switching from green glass to amber and featuring simpler labels.
Britons drink more cava
Imports of cava to the UK continue to soar, according to new figures for 2009 from the Consejo Regolador de Cava. Nearly 33million 75cl bottles of the wine were imported to the UK last year, up eight per cent on 2008. The UK is the second largest nation of cava drinkers outside Spain. Codorniu, the UK’s number-one cava brand, performed ahead of the market with volume growth of 15 per cent in 2009, according to AC Nielsen.
Tequilas introduced into the UK
Three tequilas have been launched into the UK trade by The Tequila Society, which works directly with Mexican producers to bring their high-quality boutique products to this country. The new arrivals are Don Alvaro, Alma Mia and Aha Toro, which are available through retail and online from the likes of Gerry’s and Soho Wine Supply.
Call for action for charity
Hospitality Action is calling on workers in the industry to take part in Hospitality Action Week from May 17 to 23. The charity is asking everyone to raise at least £5 during the week of action by organising fund-raising activities. One simple way is to enter the Big Prize Draw with a chance to win the first prize of a five-star trip for two to New York. For ideas and fund-raising packs, visit www.hospitalityaction.org.uk.
Morgan’s Spiced runs sampling campaign
Sampling activites are being run in bars, clubs and pubs to support a new marketing campaign for Morgan’s Spiced. Diageo GB aims to give 100,000 consumers the opportunity to try the spiced rum over the next three months, with more than 600 sampling events in outlets in major cities in England, Scotland and Wales. It is part of its Modern Adventurer campaign which began last year, encouraging people to find adventure in the everyday.
Karren Brady to speak at BII lunch
Top football executive Karren Brady is the guest speaker at this year’s BII annual lunch which takes places at Grosvenor House in London on May 11. Guests will be able to grill Brady, who is now vice chairman of West Ham FC. The lunch also features the presentation of the 2010 BII Licensee of the Year and the announcement of the winner of the 2009 BII NITA Supreme Award. Tickets are available at www.bii.org/annuallunch or on 01276 417823.
Posted: April 12, 2010
News round-up March 29 to April 6, 2010:
Soft drinks, Galvin Cup, Maclay, new app, Kingdom Entertainment, Punch, Barracuda, SIA, Singha, Innis & Gunn, Coors, BIIAB, Carlsberg
Soft drinks overtake spirits in on-trade
Soft drinks have overtaken spirits to become the second largest drinks category in the on-trade after beer, according to Britvic’s latest Soft Drinks Report. The value of soft drinks in the on-trade increased by three per cent last year to £2.4billion. Volumes of soft drinks dropped by one per cent but this was in contrast to an eight per cent fall in volume for total beer, wine and spirits. The report also confirmed that Britvic’s Pepsi overtook Coca-Cola as the number-one cola in the on-trade after the brand’s sales rose by 10 per cent to £475million.
Call for entries for Galvin Cup
The Galvin Cup, now in its fourth year, has opened for entries, offering both students and professionals a chance to showcase their bartending and mixology skills. Due to be held at Westminster Kingsway College in London on June 8, it was created by Chris Galvin, chef patron of Galvin at Windows at the London Hilton, and the bar and restaurant’s general manager Fred Sirieux. Judges this year include Robbie Bargh of Gorgeous Group, Silvano Giraldin, formerly of Le Gavroche, and Luca Cordiglieri, vice president of the UK Bartenders Guild. Competitors are judged on their mixing skills, confidence and appearance. Linking with Glenmorangie, this year they will have to produce a classic Rob Roy plus a second original drink. More details at www.thegalvincup.com.
Winners named in spirits challenge
The results of the Ultimate Spirits Challenge 2010, held in New York, have been published. Winners of the top award, the Chairman’s Trophy, included Broker’s Gin, Orzel vodka, Tres Agaves Añejo tequila, Mount Gay 1703 Old Cask Selection Rum, The Macallan Fine Oak 21-year-old single malt, George Dickel No 12 10 year old Tennessee whiskey, Midleton Very Rare 2008 Irish whiskey, Frapin Chateau Fontpinot XO cognac and St. Germain elderflower liqueur. For the full results, visit http://www.ultimate-beverage.com/uscresults2010/
Sales boost for Maclay Inns
Maclay Inns, which operates bars and pubs across Scotland, has reported that like-for-like sales rose by two per cent in the year to October 3. Operating profits soared by 19 per cent to £740,000 with total sales at £10.6million. The Alloa-based group attributed its success partly to “effective management of margins and expenses”. Managing director Steve Mallon said the outlook for 2010 remained challenging but confidence was rising. Up to five acquisitions are planned this year.
New phone app for bartenders
A new application has been launched for the iPhone and iPod Touch to help bartenders to perfect their pour. Devised by the World Flair Association, the Virtual Pour counts measures accurately as if the user is pouring spirits or liqueurs from a bottle. Bartenders can use it to practise their pouring outside of work so that they can impress customers and employers when they are behind the bar. The app includes a game that allows users to compete against each other, with scores and rankings available both on the app and online at www.virtualpour.com.
Fridge sold to Kingdom Entertainment
The legendary Fridge nightclub in Brixton, south London, has been taken over by Kingdom Entertainment Group after the leasehold interest was put on the market by receivers. Marketed through property specialist Christie & Co, it was sold for an undisclosed sum and is set to continue being operated as a nightclub. Kingdom Entertainment also operates the Prince and Dex bar and club in Brixton as well as the West End’s Arts Theatre, which is home to the London Cocktail Club.
Door licensing becomes law in NI
Compulsory licensing of in-house door staff working at licensed premises such as bars, pubs and clubs came into force in Northern Ireland on April 1. By law, all door staff must now hold and display a valid Security Industry Authority licence. Those who manage, supervise or employ individuals who engage in licensable activity must hold at least a non-frontline licence.
New operations chief for Barracuda
Barracuda Group, which operates Varsity and Smith & Jones, has appointed Richard Stringer as operations director. He was previously head of operations in the south for the group and has worked for the company for nine years. His new position, which he started on April 1, sees him join the main board.
Checks on door staff in Nottingham
Bars and clubs in Nottingham scored nearly 100 per cent in a sweep to check if door staff were complying with Security Industry Authority conditions. Council licensing officers and staff from the SIA visited 56 licensed premises and checked 49 door staff, finding only one person not complying with the rules. The checks were carried out as part of the wider two-month Operation Portcullis to protect the safety of young people by tackling dangerous weapons and imitation weapons.
Beer celebrates Thai New Year
Singha beer is helping on-trade outlets to create events to celebrate Thai New Year which falls between April 12 and 18 this year. It is offering in-outlet support materials and kits alongside advertising and promotional activities. The kits include beer coasters, A4 strut cards, A2 and A4 posters and tent cards.
Carlsberg UK to launch new spritzer
Singer and TV presenter Louise Redknapp is to front a £3million marketing campaign to support Carlsberg UK’s launch of a new female-oriented spritzer, Eve. After a three-month trial in Manchester last year, the 3.1 per cent ABV bottled drink is to be introduced into the on-trade across the country.
Punch chief to stand down
Giles Thorley has announced he is stepping down as chief executive of the UK’s biggest pub company Punch Taverns after nine years in the role. His successor is due to be appointed by the end of this month and Thorley is expected to stay on until June to carry out the handover. He said he was leaving because Punch was becoming more “operationally focused” after selling off under-performing pubs and repaying £3.35billion of debt.
Sales drive for Coors Light
Molson Coors has launched a new on-trade programme to help licensees develop sales of Coors Light. The Coors Light Ice Cold Refreshment Plan Peak Profits is a platform for driving trial, purchase and loyalty for introducing the brand into an outlet. During a set period, bars can introduce Coors Light at a trial price and then increase the cost to the “aspirational” ongoing price while protecting gross profit and raising their cash margin. It includes free kegs, trial price point-of-sale support, staff incentives and rate-of-sale drivers.
Qualification launched for promoters
The new qualification for music promoters has been launched by the BIIAB, aimed at anyone wishing to put on any kind of music event. The Award for Music Promoters (AMP) is a two-day training programme, covering areas such as project management, financial management, marketing, risk assessment, noise management and licensing law. The BIIAB is the awarding body of the British Institute of Innkeeping.
New boss appointed to BHA
The British Hospitality Association (BHA) has appointed a new chief executive with a background in the tourism industry. Ufi Ibrahim is currently chief operations officer at the World Travel & Tourism Council. She will replace the BHA’s current chief executive, Bob Cotton, in July.
Sales soar for Scottish brewer
Scottish brewer Innis & Gunn has announced a record turnover for 2009, increasing sales by 31 per cent to £4.39million. The fourth quarter of the year delivered turnover of £1.1million, an increase of 21 per cent on the same period in 2008. While exports were up 63 per cent, domestic sales rose 17 per cent to £1.56million during the year despite a declining beer market.
Posted: April 6, 2010
News round-up March 22-29, 2010:
Mitchells & Butlers, Budget 2010, Adnams, Nichols
Beer and cider duty rise above inflation
Chancellor Alistair Darling ignored pleas from the licensed trade and raised duty on beer and cider in last week’s Budget. Beer duty increased by five per cent on Sunday – the equivalent of about 8p per pint – in line with the “duty escalator” that imposes a two per cent increase above the rate of inflation. The Chancellor also announced the duty escalator would be extended beyond its original term. “Alcohol duties will also increase by two per cent above inflation for two further years from 2013,” he said. The duty on cider went up by 13 per cent – 10 per cent above inflation – and by 5.1 per cent on spirits. Magners announced that it would hold wholesale prices of its ciders and absorb the increase in duty.
Mitchells & Butlers to exit “drinks-led” pubs
Mitchells & Butlers, one of the UK’s largest operators of pubs and bars, is to focus on outlets selling food rather than “drinks-led pubs” after a strategy review. It has announced that a revamp of the business would centre on expanding its six food-led brands: Toby Carvery, Crown Carveries, Harvester, Sizzling Pub Co, Premium Country Dining and Vintage Inns. Its 2,000 properties currently include the All Bar One and O’Neill’s chains but M&B said the long-term plan was to increase the number of sites operating under the six core brands from 913 to 1,900. The company added that it was planning “a withdrawal from the more price-sensitive drinks-led businesses”, either by converting them to the “growth brands” or disposal.
Surge in profits for Adnams
Suffolk-based brewer and pub operator Adnams has reported an increase in sales and profits but remains cautious after the poor weather at the start of the year. Sales rose by 8.9 per cent for the year to the end of December to £51.3million and pre-tax profits surged by 134 per cent to £3.1million.
“Exceptional” results from Nichols
Soft drinks group Nichols, whose brands include Vimto, Panda and Sunkist, has reported an “exceptional performance” in the year to the end of December. Sales soared by 29 per cent to £72.4million and pre-tax profits rose 22 per cent to £12.2million. The group recorded a 28 per cent increase in UK sales, while international sales were ahead 33 per cent.
Posted: March 29, 2010
Industry news March 15-22, 2010:
Champagne, Secrets, Guoman Hotels, pub grants
Iconic London club on market
The Fridge, one of London’s best-known nightclubs, has been put on the market through property specialist Christie & Co. The leasehold is being offered for about £250,000. The former cinema, which has a capacity of 1,700, has been home to The Fridge since 1985 after it was founded by Andrew Czezowski and Susan Carrington. It claimed to have been the first British club to feature innovations such as video screens and a chill-out lounge. Christie & Co is acting on behalf of receiver Stephen Katz of David Rubin & Partners LLP.
TV series focuses on cocktail bar
Mokoko, a cocktail bar in St Albans, Hertfordshire, features this week in TV series The Business Inspector, in which entrepreneur Hilary Devey provides advice on how to improve business through better record keeping. Mokoko’s owner, Jass Patel, said the advice in the programme helped to bring new energy and direction to the bar. It is being broadcast on Wednesday March 24 at 8pm on Five, sponsored by HM Revenue & Customs.
Yegaar forced to re-label
A Scottish bar and drinks producer has been forced to re-label its own product, Yegaar, because its packaging did not state that it contained alcohol. Mulligans of Dumfries was told by industry watchdog The Portman Group that the product breached its code because a lack of information on the front label would cause confusion. It was responding to a complaint from Cellar Trends which distributes herbal liqueur Jägermeister. The Portman Group chief executive David Poley said: “It is difficult for consumers to tell that Yegaar is an alcoholic drink, let alone how strong it is. We don’t even know what kind of alcohol it contains.”
Top London hotel put up for sale
The four-star deluxe Cumberland Hotel in Marble Arch, London, which is home to the award-winning Carbon bar, has been put on the market for an undisclosed sum. It is being sold by the Royal Bank of Scotland, which earlier this month also put the nearby Grosvenor House up for sale. The Cumberland is operated by Guoman Hotels and is being marketing by CBRE Hotels,
Champagne sales decline in UK
Volume sales of champagne in the UK fell by 15 per cent in the UK in 2009, a decline of about five million bottles, according to new figures from the Champagne Bureau. However, the UK, which imported 30.52 million bottles last year, remains the largest export market for the French sparkling wine, with Britons consuming more than Germany, Belgium and the USA combined. Overall exports of champagne from the region fell by 28 per cent to €1.6billion last year, it was reported last month.
Community pubs receive £4m of support
A £4million package has been launched by the Government to help community pubs, including a relaxation of planning rules to encourage licensees to diversify their businesses. Pubs minister John Healey unveiled a 12-point action plan that was headed by a £3.3million fund to provide grants to support 50 community pubs in a three-year pilot programme. Pubs will be allowed to branch out into new commercial ventures, such as adding restaurants or shops, without the additional expense and time of seeking planning approval from the council. Pub companies were also warned to allow tenants to sell more locally sourced beers as well as tied products or risk being forced to do so under new legislation.
Table-dancing club targets women
A table-dancing club in Covent Garden, London, is being targeted at women as well as men by promoting it as a champagne and cocktail bar. Secrets is part of the chain of clubs founded by Stephen Less in Hammersmith, west London, in 1997. It follows a £1.5million refurbishment of the Covent Garden venue by design company Grapes Design whose other recent projects include Mayfair club Aura and Notting Hill’s Supperclub. It features a new cocktail list put together by Less with Dominic Worthington, manager of the Covent Garden club. There are no plans to revamp the other five Secrets clubs in the same way.
Bars to celebrate cask ale
National Cask Ale Week begins next week, involving about 4,000 pubs and bars across the UK. Running from March 29 to April 5, it is being organised by the Campaign for Real Ale (Camra), with licensees being offered point-of-sale materials to support activities. For more information, visit ww.caskaleweek.co.uk.
Prince of Wales backs trade’s charity
The Prince of Wales is backing an event to help Hospitality Action raise funds for hospitality workers who are in need. He has allowed the charity to have an exclusive tour of the gardens of Highgrove with afternoon tea in the Orchard Room. It will be preceded by a lunch at the award-winning Whatley Manor. It takes place on Wednesday 28th April and all the funds raised will go to Hospitality Action and The Prince’s Charities Foundation. Details on 020 3004 5503 or at astrid@hospitalityaction.org.uk.
Posted: March 22, 2010
News round-up March 8-15, 2010:
Boutique Bar Show, East Room & Sosho, Eclectic Bars, Coffer Peach, Jongleurs, Luminar, Wetherspoon
Boutique Bar Show expands north
The organisers of the annual Boutique Bar Show in London have announced details of their first event outside the capital, taking place in Manchester on May 13. It will present many new products such as Oxley Classic English Dry Gin, cognac-based liqueur Sève Feu de Joie and Geranium Gin. Held at Manchester Town Hall, it will feature a cocktail competition and a bar with a Mad Hatter’s Tea Party theme created by Sosho Rehab.
Exhibitors will include Marblehead, Inspirit Brands, Eaux de Vie, Emporia Brands, Mangrove, Distilled Spirits and Molson Coors’ Different World Drinks. Beer tastings will be run by Tom Sandham and Ben McFarland of Dwink.com. Aimed at the trade during the daytime, it will open up to consumers in the evening. Bars in the city are to create special show cocktail menus to promote the event.
Fire closes East Room and Sosho
The East Room and Sosho in Shoreditch, east London, will be closed “for the foreseeable future” after they were devastated by a fire last week. The renowned cocktail bar and members’ club, which are part of the Match Bar Group, sustained millions of pounds of damage. Nobody was injured in the blaze and nothing has been confirmed about the cause. The two venues were opened in Tabernacle Street two years ago by Jonathan Downey as part of his Match Bar Group, which also includes the Match bars in Clerkenwell and the West End. His other London bars include Trailer Happiness, Harlem, The Player and Milk & Honey.
Eclectic Bars celebrates profit boost
Sales and profits were “substantially ahead of last year” at Eclectic Bars, the operator of Po Na Na, Fez, Sakura and Embargo59. Avanti Capital, which holds a 60 per cent stake, reported that the bar and club company’s sales were up 15 per cent to £6.8million for the six months to December 31. It added that trading over the New Year was strong and that “management is optimistic about the outcome for the second six months continuing the trend seen in the first half”.
Industry returns to positive like-for-likes
After being hit by the snow and freezing conditions in January, bars, restaurants and pubs have enjoyed a rise in like-for-like sales, according to the latest Coffer Peach Business Tracker. Based on figures from 15 of the UK’s biggest groups, it reports that like-for-like sales rose by 1.3 per cent year on year in February. Total sales, including new openings, were up by about three per cent.
Jongleurs returns with Nottingham club
Comedy club Jongleurs, formerly operated by Regent Inns, is returning to cities across the UK, with its first reincarnation at a new purpose-built venue in Nottingham city centre. The new site, previously known as the Funktion Room, is being launched by a new company, Momo Leisure, which was formed by David Elphick, head of training at Poppleston Allen Solicitors, and Jez King, ex-operations director of Regent Inns. They plan to open six comedy clubs across the UK. Elphick said: “In addition to Nottingham, we are exploring opportunities in Cambridge, Manchester, Sheffield, Liverpool and Newcastle, with more to follow.”
Bar and pub sales net £6.7m for Enterprise
Enterprise Inns has raised £6.7million by selling five of its London bars and pubs at auction, including Sofa So Bar in Fulham and Molly Moggs in Charing Cross Road. Sold through property auctioneers Cushman Wakefield, the package also included the Ealing Park Tavern and the Hope in Tottenham Street. Enterprise Inns sold another pub, the Princess of Shoreditch, after the auction. It had hoped to sell another three pubs – the Halfway House in Barnes, the Three Kings in Clerkenwell and the Sun in Drury Lane – but they were left unsold.
Sales droop for Luminar
Club operator Luminar revealed that like-for-like sales dropped by 9.9 per cent for the year to February ahead of its annual results in May. It said the last two months of its financial year were “severely affected by persistent poor weather across most of the UK”. Full-year profits would be “in line with the board’s expectations”, the company said in its trading statement. Equity analyst Mark Brumby of Astaire Securities said Luminar was expected to report a pre-tax profit of about £4million. The group, whose club brands include Oceana and Liquid, also reported that it was planning a “rigorous” programme to reduce costs after the arrival of new chief executive Simon Douglas.
New MD at bar and restaurant operator
Compass Group has appointed Nick Potter as managing director of its contract bar and restaurant business Restaurant Associates. Due to arrive next month, he is joining from Gala Coral, the betting, casino and bingo group, where he held roles including divisional managing director. Previously, he was in senior roles at Eldridge Pope and Allied Domecq. He said: “I believe my experience within the industry will enable me to develop further Restaurant Associates’ bespoke offer and develop it as a highly regarded brand.”
Record profits reported by Wetherspoon
JD Wetherspoon has reported record profits for the first half of its financial year despite flat like-for-like sales. Pre-tax profits rose by 41 per cent to £36.2million for the six months to January 24, while turnover rose four per cent to £488.1million. Like-for-like sales edged up by just 0.1 per cent. The company added that trading in the six weeks to March 7 this year was “on a similar trend to last year”, with like-for-like sales down by 0.4 per cent and total sales rising by 3.9 per cent. Chairman Tim Martin said part of the success was down to a refinancing deal, which gave it a new £530million four-year banking facility with a syndicate of 11 banks. The funds will support its plans for continued expansion.
New promotion fits trade to a tea
Tetley has launched a trade promotion offering bars and pubs free equipment if they buy enough cases of its tea bags. Rewards on offer between March 19 and April 30 include a Kenwood stainless-steel jug kettle, a Kenwood smoothie maker and a Kenwood stainless-steel four-slice toaster. Every applicant in the spring promotion will also be entered automatically into Tetley’s Equipment Bonanza free draw to win £500 of top-of-the-range Kenwood equipment. Details at www.tetleyforcaterers.co.uk.
March 15, 2010
News round-up March 1-8, 2010:
No 3 gin, bar design awards, Diageo, Coca-Cola, S&NPC, Whitbread, Sailor Jerry, Fentimans, M&B, Carlsberg
New No 3 London Dry Gin unveiled
The eagerly awaited No 3 London Dry Gin has been unveiled by Berry Bros & Rudd (BBR), made with just three fruits and three spices: juniper from Italy, Spanish orange peel, angelica root, Moroccan coriander seed, grapefruit peel and cardamom pods. The 46 per cent ABV gin was developed with distillation expert Dr David Clutton and a panel of drinks specialists, writers and mixologists. It will be distributed through BBR and Inspirit Brands, focusing on the on-trade.
Shortlist announced for bar design awards
The finalists in the 2010 Restaurant and Bar Design Awards have been announced in the run-up to the awards night in east London in June. Categories include best independent bar and club, where the shortlist features The Parlour, Profile, Circus and Liquidnation in London, Lucky 7 in Glasgow and The Cut in Newcastle. Finalists in the multiple bar or club category are Big Chill Bar in Bristol, the Westgate in Bath, Green’s and Bangalore Express bar in London, Baa Bar in Liverpool and Popolo in Sheffield. Other categories include best restaurant, best café, best hotel bar or restaurant, best lighting scheme and best international bar. Click here for the full shortlist.
www.restaurantandbardesignawards.com.
Diageo and CCE in mixed drinks drive
A new on-trade marketing campaign to promote a perfect serve for mixed drinks launches next month as part of a new partnership between Diageo GB and Coca-Cola Enterprises. Consumers are being encouraged to demand a perfect serve of Gordon’s and Schweppes Tonic, Pimm’s and Schwepps Lemonade, Smirnoff and Coca-Cola and Bell’s and Coca-Cola in tall glasses with plenty of ice. The activity, under the line “Always Better Together”, will run in over 10,000 bars, clubs and pubs, with CCE and Diageo GB providing training, point-of-sale materials and 12oz co-branded glasses.
S&N Pub Company offers bar boosters
Scottish & Newcastle Pub Company has announced the launch of an initiative, to be named Bar Boosters, which is aimed at helping tenants to drive additional revenues, according to today’s industry newsletter from Astaire Securities. S&NPC has established partnerships with a range of third parties including flower wholesalers, dry cleaners and party planners to provide tenants with additional revenue streams. The company believes the programme should be able to add between £1,000 and £10,000 to the bottom line of participating pubs.
New recipe for Sailor Jerry
Sailor Jerry Spiced rum has been relaunched with a new recipe that makes the spirit more rounded and slightly less sweet. The packaging has also been revised, with a simpler label that is said to reflect the “no-nonsense and straight-talking attitude” of tattooist Norman “Sailor Jerry” Collins.
Like-for-like sales improve at Whitbread
Pub and restaurant operator Whitbread has reported like-for-like sales growth across all its businesses for the three months to February 18. Its pub restaurants were up 1.3 per cent and its hotels and restaurants were up 1.5 per cent. With Costa reporting a 9.5 per cent increase, total like-for-like sales growth was three per cent. Although total like-for-like sales for the 51 weeks to February 18 were still down 0.7 per cent, chief executive Alan Parker described the figures as “robust”. The group has also announced that Andy Harrison, currently chief executive of budget airline Easyjet, will take over as chief executive after Parker retires in November. He will join in September as chief executive designate. Before joining Easyjet, he spent nine years as chief executive of RAC.
Restaurant Group plans pubs expansion
The Restaurant Group (TRG) is looking to expand its portfolio of pub restaurants after the success of a programme to reposition its existing estate to less formal dining. “Currently, we expect to open between two and three new pub restaurants in 2010 and, as we have previously indicated, we believe that further opportunities to accelerate the growth of our pub restaurant business will arise in the future,” said chief executive Andrew Page. TRG, which also operates Frankie & Benny’s, Chiquito and Garfunkel’s, reported a two per cent rise in pre-tax profits to £50million for the year to December 27, with a five per cent increase in turnover to £436million.
Fentimans adds new soft drinks
Fentimans has added two new botanically brewed soft drinks to its range: Smooth Lemonade and Cool Ginger Beer, both in 275ml servings. They are an alternative to the popular Victorian Lemonade and Traditional Ginger Beer. “The additional organic pear and apple juice adds an almost honey-like flavour to the lemonade and the less concentrated ginger in the ginger beer results in a cooler ginger beer,” explains managing director and master brewer Eldon Robson.
M&B finance director quits
Jeremy Townsend has resigned as finance director of pub and bar operator Mitchells & Butlers after two years at the group. He is joining pest control group Rentokil as chief financial officer but will continue at M&B for up to six months until a replacement has been found.
New brewers agreed for Tetley’s beers
Carlsberg UK has agreed a deal for its Tetley’s cask ale to be brewed in Wolverhampton by Marston’s when its Leeds brewery closes next year. It has also secured a deal for Tetley’s Smoothflow to be brewed by Molson Coors at its Tadcaster brewery from next year, adding that this ensures that “the majority of Tetley’s production will stay in Yorkshire”.
Deadline looms for contesting rates
Licensees and bar owners are being warned that they have less than a month left if they want to challenge the business rates that they have been paying over the past five years. Any business owner who believes they have been charged too much for their rates since the last revaluation in 2005 have until March 31 to appeal. The Forum of Private Business has urged bosses not to miss out as, if their appeal is successful, they could receive rebates worth thousands of pounds. For more information, visit www.fpb.org.
Irish brewer seeks English distributor
Hilden Brewery, Ireland’s oldest independent brewery, is seeking distributors in England to help it build on the success it has enjoyed from supplying JD Wetherspoon and freehouses over the past five years. The company is supporting the move by making a significant investment in increasing its brewing capacity. It follows a distribution deal with Dublin-based California Wine Imports that has led to Hilden’s kegs and bottled ales being sold in many of the Irish Republic’s top bars.
Chef helps raise cash for Hospitality Action
More than £13,000 was raised for industry charity Hospitality Action at a fundraising dinner hosted by award-winning chef Cyrus Todiwala. Over 100 guests enjoyed a Goan feast, plus an auction, at Café Spice Namasté in east London last week as part of the Hotelympia exhibition at ExCel in London Docklands.
March 8, 2010
News round-up February 22-March 1:
3D Entertainment, Luminar, Ocean Spray, Monster, Suntory, Heineken, Carlsberg, BII, molecular mixology
Break-up of club and bar operator
3D Entertainment Group, the bar and club operator that runs Chicago Rock Café, has gone into administration, with most of its venues sold to US private equity firm Sun Capital Partners. 3DE was formed in 2007 when it was spun out of club operator Luminar, which continued to control 49 per cent of the business. Sun Capital Partners has acquired 31 of 3DE’s portfolio of about 50 sites and will operate them through a new company, Atmosphere Bars & Clubs. It is believed that another 12 of 3DE’s sites are being sold to JD Wetherspoon, leaving a handful to be sold by restructuring specialist Zolfo Cooper. Paul Daccus, principal of Sun European Partners, the European adviser to Sun Capital, said the deal would save 730 jobs. “This is a good business, which has suffered from unprecedented economic conditions.” Luminar’s operational trading results will not be affected by the administration of 3DE and it will not face any liabilities over property leases.
Luminar chief executive stands down
Steve Thomas has stood down as chief executive of Luminar 22 years after setting up the company. He handed over the role last week to Simon Douglas, the former chief executive of music retailer Zavvi. Thomas will continue with the company until the end of July to ensure a smooth transition to his successor.
New drive for Ocean Spray and Monster
Coca-Cola Enterprises (CCE) has announced a new on-trade push for its Monster energy brand and Ocean Spray fruit juices. After becoming official distributor for Ocean Spray last month, CCE is relaunching the brand today (March 1) to broaden its appeal and strengthen distribution in bars and pubs, backed by a £7million media campaign and new packaging. With a new blueberry variant being introduced into the UK, it will be driving sales as a mixer with spirits and for adult straight soft drinks. CCE has also launched two new variants for its Monster brand in the on-trade. Monster Export, based on Monster Original, and Monster Ripper, mixed with tropical fruits, are available in a new 250ml can, complementing the existing 500ml cans. It is supported by point-of-sale materials and a broader media campaign, positioned as a mainstream party brand alongside CCE’s edgier Relentless.
Japan triumphs in global whisky awards
Japanese drinks group Suntory beat whisky producers from Scotland, Ireland and North America to be named distiller of the year at the Icons of Whisky awards at the Whisky Live show in London on Friday. Other winners included Woodford Reserve for brand innovator, Gerry Tosh of Highland Park for brand ambassador, and Peter Currie of Springbank for young brand ambassador. Suntory also triumped in the World Whiskies Awards on Friday, winning best blended whisky for its Hibiki 21 Years Old. Another Japanese whisky, Taketsuru 21 Year Old from Nikka Distilling Company, won best blended malt whisky. Other winners included best American whiskey Rittenhouse Straight Rye 100 proof and best whisky liqueur Wild Turkey American Honey.
Revenue up at Heineken despite volume fall
Dutch brewing giant Heineken, whose brands include John Smith’s and Bulmers, has reported an increase in global revenues and net profit but warned that it expects beer consumption to continue falling. It said that, in the UK, it “significantly” outperformed the beer market which fell by 4.2 per cent, with Foster’s growing by 2.6 per cent on the back of a new marketing campaign. Globally, beer volumes fell by 1.5 per cent on the year before but revenues were up 2.7 per cent to €14.7billion, mainly because of price rises. Net profit was up 4.1 per cent to €1.05billion (£940million). Chairman Jean-François van Boxmeer said: “The global economic environment will continue to lead to lower beer consumption and down-trading in a number of regions in 2010.”
Carlsberg more than triples profits
Increased prices and cost-cutting helped Danish brewer Carlsberg to more than triple its profits in the three months to December 31 last year. It rose from 111million kroner (£13.3million) to 383million kroner (£45.9million) although sales fell from 14.52billion kroner (£1.74billion) to 13.62billion kroner (£1.63billion). With brands including Kronenbourg and Tuborg, Carlsberg said it would increase investment in brands and channel marketing in 2010.
New chairman at BII Scotland
BII Scotland has appointed Kenny Mitchell of Glasgow-based training and events business KMT Services as chairman. He has been working in the licensed trade for over 30 years, advising and training staff throughout the UK. He was voted onto the new council along with other members at a meeting at Edinburgh’s Caledonian Brewery last week, taking over from Donald McLauchlan who has been chairman for four years.
Molecular mixology masterclass in Edinburgh
Leading mixologist Nick Wykes, director of consultancy IPBartenders, will be in Edinburgh next week for a Molecular Masterclass for bartenders. He is running the session at Tonic in North Castle Street on Tuesday March 9 from 2.30pm to 5pm. He will cover spherification (colloids), emulsification (suspensions), hydrosols, foams and other molecular techniques along with the theory of how we process information, how different ingredients work on a molecular level and how to manipulate flavours and experiences with practical demos of each. The session will highlight spirits such as Babicka Vodka, Boca Loca cachaça, Ceylon Arrack, Skipper Rum and Mahiki Rum. To attend, contact Emma Davis on emma@rocklandbrands.com.
March 1, 2010
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
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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
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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 11th 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
The West bar, restaurant and brewery in Glasgow has introduced what is reputedly the world’s strongest beer into the UK. The 40 per cent ABV Schorschbock was launched by German brewer Schorschbräu in December. It comes in 33cl ceramic bottles, personally signed and hand-numbered by the head brewer. Each bottle is sealed with wax by hand and comes in a wooden case with a transparent window on one side. Scottish brewer Brewdog last year launched Tactical Nuclear Penguin, which was the world’s strongest beer at 32 per cent ABV. Schorschbräu also now produces a 32 per cent ABV beer.
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
Glenfiddich has released the highly sought-after Glenfiddich 30 Year Old single malt whisky. For the first time, each bottle will bear an individual bottle number and batch number which will identify which casks the malt master selected to marry together to create that bottle. Distiller William Grant & Sons has also released a strictly limited number of bottles of Glenfiddich 40 Year Old, a single malt whisky created using the remnant vatting system. This is the sixth release of Glenfiddich 40 Year Old and only 600 bottles are being released worldwide.
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
Diageo, whose portfolio includes Smirnoff and Ketel One vodka, has won a court case to force InterContinental Brands (ICB) to stop using the name Vodkat for its fast-growing schnapps brand. The action was launched by Diageo two years ago because it claimed that ICB was passing off Vodkat as vodka. With an ABV of 22 per cent, the speciality spirit is a lower strength than the EU’s definition of vodka which must be at least 37 per cent. Mr Justice Arnold ruled that any product using a name based on vodka, but was not vodka, was likely to confuse the public. ICB said it was considering the judgment but hoped to continue using the Vodkat name.
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
Smirnoff has teamed up with London’s Time Out magazine to provide a free iPhone application that provides users with a guide to the bars, nightlife, restaurants and culture of the capital. It includes a function using geo-location technology to provide recommendations for the area where the user is within seconds. The content is also available at www.timeout.com/smirnoff.
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
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