Industry Update 04.10.2023

A recent Localis Report on the value of pubs suggested that 75% of a community found pubs being net positive to the community. They’re advising the government to provide a £4000 business rate rebate for pubs taking on social roles (Localis).

Key pubs report growth in their 2022/23 figures:

• Hydes, a craft brewery with 40+ pubs, has grown its revenue to £34.1 million for the year 2022/23 up from £28.3M.
• Innis & Gunn, a Scottish Brewery with 4 taprooms have reported turnover growth of 7.8% to reach £22.7 million for the year ending December 2022.
• M&B report total sales growth of 10.5% for their financial year, with 8.9% growth in like for like products. Food was up 7%, whilst alcoholic drinks were up 10.7%.

In spite of the poor weather, spending in overall eating & drinking grew by 5.2% in August 2023 (Barclays).

Lumina intelligence reports that the eating out market is predicted to grow by 4.6% during 2023 – reaching a total value of £95.2B (Lumina).

The Bank of England halts interest rate hikes last week after falling inflation figures – beating analysts’ expectations as hikes were expected to halt in 6 months time.

RedCat Pub Group appoints former Greene King CEO Richard Lewis as their CEO, seeking continued growth after acquiring over 100 pubs and pub hotels since 2021.

Carlsberg joins the latest alcohol brewers participating in ‘Drinkflation’ – to save on the new lower duty rates for alcohol below 3.5% ABV. Drinking volumes are yet to drop, but consumer kickback is likely to be felt in a similar manner to Fosters

Our take:

Many pubs are proving resilient in the face of cost-of-living issues and a COVID-19 recovery. Craft beers seem to be particularly resilient – perhaps as they already demand a premium price and have distinguished themselves from others in the marketplace. Pubs integrated with breweries also appear to be capitalising on ‘drinkflation’; utilising their ability to drive down pint prices to beat the competition.

Whilst you, as a pub owner, don’t have the luxury of your own brewery – our bridge range is as close as it gets to this. Our craft ranges could help build the resilience of your sales, and our Brue River lager price will allow you to significantly grow your footfall and hence trade.

Plus, we wholesale our alcohol 7 Days a week, delivering the exact same day and offer a free keg upon installation for any of our range, just get in touch at 01278 787 210 if you want to test it out … at no risk to you!