Shares plummet in Enterprise Inns as beer sales continue to fall

Shares in Britain’s second largest pubs group, Enterprise Inns, have plunged to a 4-year low this morning after it expressed concern that beer sales in its pubs continue to fall.

Shares fell 13.8% to 298p, the lowest point since September 2004, following the announcement.

Ted Tuppen, the group’s chief executive, said these are challenging times for the pub industry.

Consumers continue to be affected by rising mortgage costs and hikes in food and fuel, and are having to cutback and as a result, are visiting pubs less often.

Furthermore, July 1 marked the first anniversary of the smoking ban and the pub trade is beginning to provide year-on-year comparisons of its impact on the industry.

In a statement, the Solihull-based pub operator said trade beer sales continue to be subdued and industry sources are indicating double-digit volume declines in the three-month period from April to June.

Mr Tuppen added that Enterprise will need to invest between £7 million and £8 million to provide financial assistance to hundreds of licensees whose trade has been affected by the smoking ban and cheap alcohol prices in supermarkets. Last year, Mr Tuppen criticised supermarkets for selling cheap booze.

He concluded by saying that he was reassured by the quality of his pub estate, and that cash flow remains strong.

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