Wholesalers Weekly (12.10.2023)

This last week sees the earnings reports for a host of large pubs chains, including Wetherspoons and Marston’s – alongside an inflation update and key appointments in the industry …

• Marston’s reports an 11.3% increase in total sales, with a 10.1% growth in like for like sales year on year. By the end of 2024, the chain plans to add an additional 50 food led pubs to its portfolio. They’re also aiming to increase margins by 2% in the next 2 to 3 years.

• UK inflation slows to 11% in September – down from 12.2% in August. Supermarkets are engaging in pricing competition – helping to slightly reduce inflation.

• The number of community pubs has grown by 62.6% over the past 5 years – now at 9,113 pubs and generating £87.9B in income averaging £964,556 in sales per pub.

• Liberation Group appoints Simon Griffiths as the new operations director to oversee Butcombe Pubs & Inns across the UK. Griffiths has over 20 years of hospitality experience previously working for Loch Fyne and Premium & Urban Pubs South In operations management roles.

• JD Wetherspoons sales are up 10.6% for the year, rising to £1.93B, with like for like sales up 12.7% (due to fewer pubs being open). The pubs also returned to profitability, reporting a net profit of £42.6M before taxes – compared to a £30.4M loss last year.

• Stonegate is looking to raise new debt against 1,000 pubs per Bloomberg, admist the need to refinance their £1.2B bond maturing in 2025.

• Cameron’s Brewery revenues are up 25.8% year on year to £62M.

In further news, only 50% of pubs are making profit – despite 2/3rds of pubs seeing trade return to normal levels. It seems like there is a massive divide between the large pub groups, like Butcombe, Greene King and Wetherspoons who see continued revenue growth and free house owners. Perhaps this is due to the pricing power of larger establishments – who have the ability to drive suppliers’ prices down to the floor, whilst they pocket the difference. That’s why we’ve introduced a new range of Bridge products to help you drop your customers prices – and increase your margins at the same time! Give us a call or drop as an email and see how we can help you.