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Morning Briefing for pub, restaurant and food wervice operators

Mon 3rd Nov 2014 - Manchester gets directly elected Mayor to maximise potential of north
Manchester gets directly elected Mayor to maximise potential of north: Greater Manchester is to get its own directly elected city wide mayor with powers over transport, housing, planning and policing, Chancellor George Osborne has announced. The government will now prepare legislation to enable these changes with the potential for the Mayoral election to take place in 2017. The measure is the latest initiative in the Chancellor’s plan to create a Northern Powerhouse to maximise the economic potential of the north. The proposals also include devolving further powers to the Greater Manchester Combined Authority including over support for business growth, skills and help to join up health and social care budgets. Taken together the plans represent a comprehensive package of powers for Greater Manchester. The government believes this will create a powerful devolved administration with strong political leadership that can drive through policy to stimulate economic growth and plan strategically across the city, as well as nationally and internationally. The government hopes that Manchester will be the first of many big cities to take advantage of greater devolution of powers. Chancellor George Osborne said: “This is a massive moment for the north of England and our plan to build the Northern Powerhouse. After several months of private discussions with local representatives from all three parties, I have reached agreement with the civic leaders of Greater Manchester to create the first metro-wide elected mayor outside of London. This will give Mancunians a powerful voice and bring practical improvements for local people, with better transport links, an Oyster-style travelcard, and more investment in skills and the city’s economy. I want to talk to other cities who are keen to follow Manchester’s lead – every city is different, and no model of local power will be the same. The Northern Powerhouse is becoming a reality. We plan to make major investments in northern transport and science, now we have agreement on the first metro area Mayor. This is what we’ve achieved in just a few months. Giving cities power is part of our long term economic plan to reduce the decades-old gap between north and south, London and the rest.” Communities Secretary Eric Pickles said: “This landmark agreement shows how serious we are about moving powers out of Whitehall and reinforces the significant authority and finance already given to local communities. It is an important step in our continuing work to decentralise, to increase local democracy, bring better services and deliver more homes and jobs. Greater power for local government must always come with greater local accountability so people can challenge their council to do better and hold them to account about services they provide.” Lord Peter Smith, chair of GMCA, said: “Make no mistake, this devolution settlement is a momentous moment for Greater Manchester. It gives us greater control over own destiny in several key areas and the ability to base decisions on local priorities and needs rather than on ‘one size fits all’ dictates from Westminster. This isn’t about taking powers from individual Greater Manchester authorities. It’s about powers coming down from central government to a more localised level.” Sir Richard Leese, vice chair of GMCA, said: “Greater Manchester has been in the vanguard of the national devolution debate. It was clear that an over-centralised national system was not delivering the best results for our people or our economy. We are extremely pleased that we can now demonstrate what a city region with greater freedoms can achieve and contribute further to the growth of the UK. Our ultimate ambition is for full devolution of all public spending in Greater Manchester, currently around £22 billion a year, so that we either influence or control the whole amount. We recognise that this cannot happen overnight and there needs to be a staged approach based on evidence that devolution delivers increased economic growth and better public services. But today’s settlement is a huge move forwards and a road map for the future.”

Just Eat reports 51% increase in like-for-like orders in Third Quarter: Just Eat, the world’s largest online and mobile marketplace for takeaway food, has reported that orders increased by 51% on a like-for-like basis in its Third Quarter, the three months to 30 September. Total orders in the three months to 30 September 2014 increased by 56% compared to the same period in 2013. This figure includes the benefit of consolidating the orders from its French business (Alloresto.fr) from July 2014. The company stated: “This strong Q3 percentage growth reflects both the underlying strong momentum in all parts of the business and a July 2013 comparator, which was weak due to the 2013 UK heat wave. Since 30 June, the Group has also (as previously announced): increased its stake in Alloresto.fr to 80% to consolidate leadership in the French market, and; created the clear market leader in the Brazilian online delivery food market by establishing a joint venture, in which Just Eat holds 25%, with the Brazilian operator, iFood.” Just Eat chief executive David Buttress said: “I am very pleased with our performance over the summer, a period when even more consumers have enjoyed the benefits of our online marketplace for takeaway food, particularly via their mobile devices. At a strategic level, our commitment to developing market leadership in all of our territories was further reinforced by Just Eat acquiring control of Alloresto.fr in France, and creating a market-winning JV in Brazil with iFood. We are in an excellent position as we enter the important winter period and remain confident for the full year.”

Diageo signs deal to acquire full ownership of Tequila Don Julio in return for sale of Bushmills: Diageo has signed a deal with Casa Cuervo to acquire full control of Tequila Don Julio and the early termination of Casa Cuervo’s production and distribution agreement for Smirnoff in Mexico. In return, Diageo has agreed to sell whisky brand Bushmills to Jose Cuervo Overseas. The transaction will result in a net payment of $408 million to Diageo upon completion, which is expected in early 2015 subject to certain approvals. Diageo chief executive Ivan Menezes said: “This transaction delivers two key objectives for us. We have secured our position in the growing super and ultra-premium segments of the tequila category and further strengthened our global footprint by expanding our leading position in Mexico where the growth of spirits has great potential. Diageo has realised this opportunity through the breadth and depth of our portfolio. It delivers our strategy: to build our presence in the world’s fastest growing markets and lead the industry in the biggest growth opportunities. I am delighted we have reached this agreement.” Details of the component parts of the transaction are confidential. Smirnoff volume and net sales in Mexico in the year ended 30 June 2014 were 285,000 cases and £9 million respectively. Bushmills volume and net sales in the same period were 800,000 cases and £57 million. Tequila Don Julio had volume and net sales of 590,000 cases and £105 million, of which Diageo accounted for 345,000 cases and £75 million net sales, in the year ended 30 June 2014.

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