Michael Sutton

Wetherspoon Sales Increase 5.7% As Revenue Tops £2bn Pub group JD Wetherspoon has revealed that strong customer demand helped boost revenues. Total sales in FY24 were £2,036 million, an increase of 5.7%, compared to FY23. The company revealed that pre-tax profits jumped by 73.5% to £73.9 million for the year to July 28, compared with the previous year. Tim Martin, the chairman of JD Wetherspoon, said: “Sales continue to improve. In the last nine weeks, to September 29 2024, like-for-like sales increased by 4.9%. The company currently anticipates a reasonable outcome for the current financial year, subject to our future sales performance.” The companies trading summary revealed that: •LFL sales were stronger than total sales due to a small number of pub disposals and lease terminations. •Operating profit, before separately disclosed items, was £139.5 million (2023: £107.1 million). •The operating margin before separately disclosed items, was 6.9% (2023: 5.6%). •Profit, before tax and separately disclosed items, was £73.9 million (2023: £42.6 million). •In the period, the company sold eighteen pubs and terminated the lease of an additional nine pubs. •This gave rise to a •cash inflow of £8.9 million. •There was an exceptional loss on disposal of approximately £13.4 million, recognised in the income statement, relating to these pubs. The company also highlighted in its preliminary statement the disparity between VAT in pubs and supermarkets, saying: “As we have previously stated, the government would generate more revenue and jobs if it were to create tax equality among supermarkets, pubs and restaurants.” “Supermarkets pay virtually no VAT in respect of food sales, whereas pubs pay 20%. This has enabled supermarkets to subsidise the price of alcoholic drinks, widening the price gap, to the detriment of pubs and restaurants.” “Pubs also pay around 20 pence a pint in business rates, whereas supermarkets pay only about 2 pence, creating further inequality. Pubs have lost 50% of their beer sales to supermarkets in the last 35 or so years. It makes no sense for supermarkets to be treated more leniently than pubs, since pubs generate far more jobs per pint or meal than do supermarkets, as well as far higher levels of tax.” “Pubs also make an important contribution to the social life of many communities and have better visibility and control of those who consume alcoholic drinks.” “Tax equality is particularly important for residents of less affluent areas, since the tax differential is more important there – people can less afford to pay the difference in prices between the on and off trade.” “As a result, in these less affluent areas, there are often fewer pubs, coffee shops and restaurants, with less employment and increased high-street dereliction. Tax equality would also be in line with the principle of fairness – the same taxes should apply to businesses which sell the same products.” Read More: https://lnkd.in/eavD5SJv

New Campaign Helps Consumers Identify ‘True’ Independent Breweries As Demand For Local Beer Rises A new campaign launching today is seeking to make it easier for beer drinkers to identify beer from independent breweries in pubs, bars, and shops as demand for local beer rises across the UK. Production volumes for independent breweries have now returned to pre-covid levels, with cask beer sold in pubs also in double digit growth, according to statistics from the Society of Independent Brewers and Associates (SIBA) who have launched the new ‘Indie Beer’ campaign. SIBA say the issue isn’t demand for independent beer, the issue is getting access to market and ensuring genuine independent beer is being sold to beer drinkers. “Support for local independent brewers has never been stronger and in 2024 we’ve seen independent brewing volumes return to pre-covid levels. Between them independent brewers employ 10,000 people, run over 2,000 pubs bars and taprooms and pay millions in taxes here in the UK. They are a force for good in the local communities they represent and it’s essential Global beer companies are not taking credit for the hard work of true independent brewers.” Andy Slee, SIBA Chief Executive. New YouGov data published today found that 75% of people surveyed believe consumers are being misled when purchasing beer from once independent craft breweries, such as Beavertown, Camden, and Fullers that are now owned by Global beer giants Heineken, Budweiser and Asahi respectively. People were shown images of five beers from once-independent breweries that have been bought-out by Global beer companies; Beavertown Neck Oil (Heineken), Fullers London Pride (Asahi), Camden Hells (Budweiser), Brixton Reliance Pale Ale (Heineken), and Sharp’s Doombar (Molson Coors). When informed that these breweries were actually owned by Global companies and not independent, 75% of people surveyed said they felt consumers were being misled, with the figure for the beer drinkers surveyed even higher at 81% who believe consumers are being misled. “People want to support smaller independent businesses, but when buying these beers they’re actually spending their money with Global beer giants.” Andy Slee, SIBA Chief Executive. The results of the research also showed that consumers generally were more likely to think Global-owned brands were actually independent, with Beavertown Neck Oil the Global-owned brand people surveyed were most likely to think was produced by an independent craft brewery. 40% of people surveyed thought Neck Oil was independent – higher than genuinely independent breweries such as Vocation, Fyne Ales and Five Points. The research was commissioned by the Society of Independent Brewers and Associates (SIBA) as part of the launch of their ‘Indie Beer’ mark, which will be used on beer pumpclips, cans and bottle labels to identify beers as being produced by a genuine UK independent brewery. The campaign also includes a new ‘beer checker’ tool via …