Wholesaler’s Weekly – An Alcohol Industry Update (21.11.2023)

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7 Day Cellar's alcohol industry update...

In this week's industry update, CPI inflation drops to it's lowest figure in the last 12 months of 4.6%, high profile Stonegate and Marston's officials announce their resignation and Young's reveal their H1 results...

Economic figures seem to be improving, large pub companies continue to make profits and Young's report their H1 results.

The MA reports that UK brewery leaders are urging the Chancellor to abandon planned alcohol duty hikes, citing potential damage to growth after August’s £225 million industry burden, according to Carlsberg Marston’s CEO Paul Davies. The hike is expected to be announced in the Autumn statement, on November 2022 – which would make the second hike in only 4 months.

 

KAM’s research indicates that pubs command the largest share of consumer spend compared to other hospitality sectors per data insights from HDI. Consumer spend across hospitality channels remain flat year on year with 29% of consumer spend devoted towards pubs, 16% on fast food, 14% on delivery (14%), and 5% on casual dining.

 

Stonegate founder and chairman Ian Payne, aged 70, is set to retire in January 2024 after 13 years growing the company into the UK’s largest pub group.

 

Young & Co’s H1 results reveal that revenues were driven by price rises and mix changes. The City & Central London segment sales are up 8% like for like, split across 69% wet and 31% food. Net profit margins rose to 15.8%, and profits are exceeding pre-Covid levels.

 

Zonal reports a 40% YoY increase in December hospitality bookings, with Christmas Day bookings 59% ahead. This appears to illustrate a strong rebound in the hospitality this Christmas after CGA reported lacklustre October volumes.

 

Marston’s PLC announces the immediate departure of CEO Andrew Andrea. He will be available for a period to ensure a smooth handover of responsibilities.

 

Fuller’s confirms an agreement to buy back up to one million of its own shares, considering the current share price as a significant discount to the underlying net asset value.

 

Economic indicators include a Headline CPI of 4.6% down from 6.7% in September. Inflation for the UK restaurant and hotel sector eased to 7.6% in October, and regular pay (excluding bonuses) increased by 7.7% in the period July to September 2023.

 

The ONS reports a fall in the estimated number of vacancies in the UK by 58,000 to 957,000 in August to October 2023.

 

Tim
Tim

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