Summer sun and the World Cup help beer sales soar at Marston's
The sunny weather and the World Cup helped drive a stronger performance from Banks's brewer and pub owner Marston's over recent weeks, it revealed today.
Despite a mixed impact on its pubs from the football, with less people dining out at its pubs but more watching the games there, Wolverhampton-based Marston's has toasted soaring growth at its brewing business.
Marston's Beer Company – which also makes Pedigree, Wainwright, Lancaster Bomber and Hobgoblin – has sold 61 per cent more beer this year so far, boosted by last year's £55 million Charles Wells takeover that brought it Bombardier and McEwans.
At the same time the group says it remains on track to open 15 new pub restaurants and bars this year, and six of its lodge hotels.
Chief executive Ralph Findlay said: “We are encouraged by our stronger trading performance in the second half-year, including the benefit of recent good weather and the impact of the World Cup in our Taverns estate and in Marston’s Beer Company.
“We have a strong pipeline of sites which will contribute to continued growth in pubs, and see further opportunity in brewing following the acquisition and successful integration of Charles Wells Brewing and Beer business in 2017.
"Our strategic objectives and progressive dividend policy remain appropriate for current market conditions and we remain confident of delivering underlying earnings in line with expectations for the full year.”
In its update for the City today, Marston's said that while the football tournament in Russia had a negative impact on its pub-restaurants, it saw significant benefit for its more traditional pubs, leased pubs and its brewing business as fans watched the games at their local or at home with a refreshing ale.
A company spokesman said: "Most of our pubs have attractive outside areas allowing our customers to enjoy the good weather, and we created a brilliant World Cup atmosphere in many, building on the demand for experiences and the fact that pubs are the ‘next best thing’ to live football."
It provided a welcome improvement after the first half of Marston's' year was hit by the snow and rain, and means the company has achieved 'encouraging' sales growth in both its pub and beer businesses over the 42 weeks of its financial year so far.
"We expect to deliver underlying earnings in line with expectations for the full year," said the company.
Sales in its managed and franchised pubs were up 5.2 per cent, including like-for-like sales growth of 0.3 per cent and the contribution from Marston's' rolling pub expansion programme.
In the most recent 16 weeks like-for-like sales did even betteer, up 0.9 per cent, helped by the good weather and the football, but with some offset from poor weather in April.
Since April overall like-for-like sales growth over the last 12 weeks has jumped to two per cent with the performance of Marston's' Destination and Premium pubs – where the focus is on food – performance continuing to improve as well as weather benefiting the company's Taverns outlets.
Over the 42 weeks as a while Destination and Premium like-for-like sales were 1.5 per cent behind last year, which was an improvement on the half-year stage, while like-for-likes are down just 1.2 per cent in the last 16 weeks despite the impact of the World Cup.
On the other side of the business, the group's managed and franchised Taverns saw like-for-like sales for the 42 week period 3.8 per cent ahead of last year, including growth of five per cent in the last 16 weeks.
Meanwhile, Marston’s Beer Company achieved strong growth, including total volumes up around 61 per cent in the 42 week period with good growth in the underlying business.
The company now has 1,568 pubs nationwide and, in addition to Banks's, brews ales including Marston’s Pedigree, Wainwright, Lancaster Bomber and Hobgoblin.as well as Jennings, Wychwood, Ringwood, Brakspear and Mansfield beers. Following the acquisition of Charles Wells beers, Marston’s has added Bombardier, Courage and McEwan’s to its portfolio most recently.
With 1,000 working at its headquarters, brewery and distribution centre at Chapel Ash in Wolverhampton, the company has a nationwide workforce of 14,500 people.
