Marston’s performing well in a weak market

Following the smoking ban, falling consumer confidence and increasing costs, the pub trade has been struggling but brewer and pub operator, Marston’s, continues to increase its share in a weak market.

However, chief executive Ralph Findlay said our high-quality pub estate is well situated to exploit favourable market trends including the growth in casual dining. However, he added that he is ‘cautious’ about the outlook for the next 12 months.

The company behind Pedigree, Banks’s and Mansfield bitters announced sales up by 7.9% in the 16 weeks to 19 January. This is primarily due to the purchase of Sovereign Inns, Eldridge Pope and the Ringwood Brewery in July 2007, but like-for-like sales at the managed pubs arm also rose 1%.

In Marston’s Beer Company, the tenanted and leased pubs division, like-for-like profits were 0.6% below those in 2007 with growth in rental income offset by lower beer volumes and machine income, reflecting the smoking ban impact. Volumes for Marston’s Beer Company were also down on last year.

Marston’s added the high profile it receives from sponsoring cricket is helping, the group is to enhance its links to cricket this year by becoming Official Beer of the Twenty20 Cup.

Marston’s operates over 500 pubs across the UK and claims its mid-market position is enabling it to manage the downturn.

Story link: Marston’s performing well in a weak market