Propel Morning Briefing Mast Head Propel Hospitaliity website Paul's Twitter Link Subscribe Unsubscribe Web Version Forward Email Hobgoblin Banner Morning Briefing Strap Line
Wed 27th May 2015 - Update: AG Barr, Burger & Lobster, leisure market
AG Barr reports total sales down 1.1%: Soft drink group AG Barr has reported that total group sales, excluding the now divested Orangina brand and Findlays water coolers, declined by 1.1% for the 15 weeks to 9 May 2015 versus the same period last year. The recently acquired Funkin business continues its growth trajectory and contributed just under £3m to gross sales. In the period, the total soft drinks market as measured by Nielsen, recorded modest value growth of 0.7%. The company stated: “As previously indicated, this sales performance reflects the return to a more normal sales phasing over the year compared to the strong first half performance in prior year sales related to our Glasgow 2014 Commonwealth Games marketing and promotional activity. Margins continue to hold up well as we drive efficiency improvement across the business. We have a strong summer brand programme planned across all of our core brands and expect to see a return to sales growth in the second half of this financial year. The balance sheet remains strong and there have been no significant changes in the financial position of the Company, save as disclosed below, since publication of the Report and Accounts for the year ending 25 January 2015. We are pleased to confirm that we have now signed development agreements to build further warehousing capacity as we continue to develop our Milton Keynes site. This includes the acquisition of an additional 1.54 acres of land. We have also agreed to purchase a further 3.86 acres of land, adjacent to our existing site, to give us additional expansion options in the future. The total cost of this development is £11m including £4m for the land for additional future expansion. The UK macroeconomic environment appears more positive; however, this is balanced by a retail market which continues to be competitive and volatile. We remain confident in our strategy and long-term prospects. We are on course to meet our expectations for the full year despite the challenging conditions across the market.”

Burger & Lobster launches two sites in one week: Burger & Lobster has launched two new sites – a new restaurant on Threadneedle Street and a second Smack Lobster Roll venue in Soho. Burger & Lobster Threadneedle St will be the group’s largest UK venue to date, providing space for over 300 diners, a private dining room and mezzanine level which overlooks the restaurant and impressive island bar. Threadneedle St will also exclusively launch Burger & Lobster’s new breakfast concept, which consists of their 60z breakfast burger and Lobster Scrambled eggs. Meanwhile over in Soho, Burger & Lobster will launch its second Smack Lobster Roll site on Dean Street this week. Serving up five Lobster Rolls including its B&L classic and 4 Lobster salads all at £10, Dean Street will be the first Smack site with a take-away option only.

Douglas Jack – our key points from leisure conference: Numis Securities leisure analyst Douglas Jack has set out his key points arising from the firm’s leisure conference held last week. He said: “The main positive theme was the strength of the UK consumer backdrop, and the resultant surge in demand for premium products (that are unique to the on trade). The main negative theme was the scale of supply growth in eating out, a scenario that favours strong brands in captive markets. Longview Economics expects consumer cash flow to grow by 3% in real terms in 2015, the best rate since 2005. It is also positive that Longview estimates that the process of de-leveraging household debt is now 40% complete. The backdrop should remain benign: 2-3% GDP growth in 2015 and 2016; no interest rate increase until 2016; and rising private sector employment. The main medium-long term economic risks are inflation and rising interest rates, stemming from low labour productivity and rising wage inflation. Slack in the labour market has started to dissipate, with the share of part-time workers in the labour market now falling. These issues, housing market earnings multiples, and the current account deficit should become more problematic when monetary policy eventually has to tighten. According to CGA Peach, eating out supply rose 5.4% in the year to March 2015 (with restaurants up 8.1%) whereas drinking out supply fell 2.9% (with wet-led pubs down 5.6%). Licensed retail supply is now growing more quickly in Manchester (+4% supply), Cardiff (+6%) and Leeds (+8%) than in London. Competition is fiercest in city centres, compounded by rapid growth in the fast casual restaurants and street food. On-trade drink is decreasing by 2.0% pa in volume, but rising by 1.7% pa in value, with all pub segments in volume decline, whereas the restaurant sector is in 5.2% volume (7.5% value) growth, driven by supply. Premium products are outperforming (volumes are growing at 21% for craft beers, 8% for world lager and 6% for premium cider, versus declines of 3% for standard lager and 5% for keg ale) and these trends are expected to continue. Pub food sales are growing at 5.8% (wet-led +6.8%; food-led +3.6%; bars +8.7%) according to CGA. Horizons forecasts a 3.9% CAGR for on-trade food sales through to 2019, with managed groups outperforming independents. Voucher promotional activity is falling, but restaurant prices have been steady for two years, whereas pub prices have been rising towards restaurant levels. Overall, we view the outlook as positive. The greatest risks rest with independent and mainstream restaurants opening in oversupplied town and city centres.”

Return to Archive Click Here to Return to the Archive Listing
 
Punch Taverns Link
Return to Archive Click Here to Return to the Archive Listing
Propel Premium
 
Toggle Banner
 
Taylors of Harrogate Banner
 
Harri Banner
 
Bord Bia Banner
 
Swifty Banner
 
Lifebuoy Banner
 
BrewDog Banner
 
Eagle Eye Banner
 
Interiors UK Banner
 
Ei Group Banner
 
Trail Banner
 
Yumpingo Banner
 
Bizimply Banner
 
Lucky Saint Banner
 
Hello Beer Banner
 
Taylors of Harrogate Banner
 
Chika's Banner
 
The Vegetarian Butcher Banner
 
Zonal Banner
 
Pago Banner
 
Access Banner
 
Ten Kites Banner
 
Prestige Purchasing Banner
 
IOL Banner
 
COREcruitment Banner
 
Startle Banner
 
Bums on Seats Banner
 
Punch Taverns Link Punch Taverns Link
Twinings Banner
ALMR Web Link Web Version Unsubscribe Subscribe Propel Info website