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Welcome to this week’s alcohol industry update with 7 Day Cellar. In this week’s edition, we have an update on potential business rate increases for pubs, volume figures from Carlsberg alongside CGA drink sales volumes.
As always, we keep you updated with all the key developments in the alcohol industry. So be sure to keep up to date via our weekly newsletter – which contains exciting offers and keeps you up to date with all the key sporting and industry events.
- The British Beer and Pub Association welcomes the report on the second review of the Pubs Code alongside its key finding that there is no need for any changes to the code or how it’s implemented. The report highlights the support given to pubs during the pandemic, which included £360M of reduced rent.
- A host of reporting bodies still suggest this is not enough, with 60% of pubs viewing action on reducing business rates as a top priority for the sector.
- Molson Coors experienced significant growth in Q3, updating its underlying profit expectations. They now believe that their underlying profit will jump 32-36% in 2023 compared to the previous estimate of 23-26%.
- The CGA reports that the number of pubs in the UK falls below 100,000 for the first time in its history, falling to 99,916.
- CGA also highlights that Storm Babet has caused a marginal drop in on-trade venue sales, which fell by 0.2%. This now comes after 8 weeks of growth in the Daily Drinks tracker, due to England’s knock-out games in the Rugby World Cup.
- BOE holds interest rates at 5.25%, Inflation has fallen from a peak of 11% in 2022 to 6.7% in September 2023 – expected to fall to around 4.5% by the end of the year.
- Heineken pulls its ‘Island’s Edge Irish Stout’ from Ireland. The brand still owns Murphy’s, but this again shows the strength of Guinness – especially in the winter season.
- Carlsberg reports a revenue growth of 5.8% for the quarter, leaving them at 9.2% year to date. This was mainly driven by growth in alcohol-free beers, growing by 6% in volume, and growth in the US – offsetting a drop in flagship beer sales by 4%. It still believes operating profit to lie between 4 to 7%.
Youngs Pub expands its London portfolio with the acquisition of The Crooked Billet on Clapton Road. Bringing the total number of pubs they own to 259.
This week’s news sees a continued theme for the final quarter of 2023, where larger breweries and pub companies with significant balance sheets are benefitting from decreased competition on the market. We’re continuing to fight back against shrinkflation and rising prices, negotiating improved prices and more.
