Shepherd Neame reports strong half-year trading: Shepherd Neame, owner and operator of 285 pubs in Kent and the south east, has reported strong half-year trading. It said like-for-like sales growth across its pubs has remained strong, with retail like-for-like sales up 4.5% for the 26 weeks to 27 December 2025 Its retail pubs traded well over the Christmas and new year period, with retail like-for-like sales up 8.1% for the five weeks to 3 January 2026, driven by a strong performance inside the M25, up 12.6%. Its tenanted estate continues to deliver robust performance, with tenanted like-for-like pub income up 3.1% for the period. Total beer volume was down 6.6% for the 26 weeks ended 27 December 2025, while own beer volume was down 11.6% for the same period due to the ongoing decline in national volumes. Chief executive Jonathan Neame said: “Demand has remained resilient throughout this period in our pub business, and we have enjoyed a particularly strong Christmas trading period. While our sector continues to face cost headwinds, we expect these to ease as we progress through 2026. The company continues to trade in line with the board’s expectations.”

SSP makes ‘strong’ start to new financial year with first quarter 5% like-for-like sales growth: SSP Group, the UK operator of food and beverage outlets in travel locations worldwide, has made a “strong” start to its new financial year, with 5% like-for-like sales growth in first quarter. In the eight weeks ending 31 December 2025, in the UK & Ireland, SSP’s sales rose by 8% year-on-year (on a constant currency basis), with sustained strong like-for-like sales. The company said it was “pleased by our performance in air and in our M&S estate (across both air and rail)” and that “more broadly, we are seeing the benefits of a strengthened customer proposition as a result of our refresh and renewal programmes”. Year on year sales also grew 4% in North America, 1% in Continental Europe and 17% in APAC and EEME. The company said: “The new financial year has started well, with positive revenue momentum. We are making good progress in driving improved performance through our 'Focus 26' operational plan and expect to provide a full update on this at our first half Results. Our guidance for the year, as outlined at our FY25 results, remains unchanged.” Chief executive Patrick Coveney added: “We have made a good start to the financial year, with like-for-like sales growth of 5% in the first quarter. We are on track against our 'Focus 26' operational plan with a range of programmes underway to deliver sustained improvements in profitability, cash and returns on capital. Given this momentum, we remain confident in our prospects for the balance of FY26 and beyond.”

C&C Group – trading is below expectations, impacted by weak consumer confidence associated with UK Budget, January seen continued softness: C&C Group has said it is trading below expectations, with the last two months of 2025 impacted by “weak consumer confidence associated with the UK Budget”. In a trading update, the company said: “As the group approaches the end of its financial year, overall trading is below the board's expectations. Customer performance across November and early December was impacted by weak consumer confidence associated with the November UK Budget. Our business performance was driven primarily by softer than anticipated demand in hospitality, alongside adverse product mix, as consumers continue to move away from the consumption of wine and spirits, in favour of beer, across the market. However, trading across the Christmas fortnight was in line with expectations. In January to date, we have seen continued softness of consumer demand in the market and anticipate that this will continue for the balance of the current financial year. While the group continued to make strong progress in its key objectives around improving customer service, developing brand execution, innovation and operational efficiency, these actions were not sufficient to offset the combination of subdued market volumes, unfavourable category mix and competitive pricing dynamics across the market.” As a result of these factors, the group said it now expects adjusted operating profit to be in the range of €70m-€73m, reflecting the lower operating profits in its distribution business. Brands continue to deliver well, with Tennent's and Bulmers performing strongly across the festive period. It said the business remains financially robust, with a strong balance sheet, significant liquidity and covenant headroom. It said the board remains committed to its capital return plans of returning a total of €150m over the previously announced timescale, with €92m already returned as reported in our interim results. The group added: “The board expects a continuation of the current macroeconomic and consumer headwinds into next year but remains confident in the group's ability to create value for shareholders in the medium to long term.  It is currently anticipated that FY27 profits will be similar to the current year, reflecting the impact of planned reductions in volumes through the distribution channel as less profitable business is exited, but the lag between revenue decrease and cost reduction initiatives is expected to lead to some degree of short-term profit dilution.”

Tom Kerridge calls on Rachel Reeves to cut VAT on hospitality: Tom Kerridge has called on Rachel Reeves to cut VAT on hospitality to help save Britain’s struggling pubs. The Michelin-starred chef said lowering the tax from 20% to 10% would make “a big, big difference” to pubs and the rest of the hospitality industry. Kerridge told The Telegraph’s Daily T podcast: “Across hospitality, we would love it (VAT) to sit at about 10% That 10% margin makes a big, big difference to us to be able to operate. Most hospitality businesses right now are making a loss or breaking even. A 10% difference in revenue that comes back into the business allows you to operate at a profit, allows small growth.” Kerridge runs a number of acclaimed pubs and restaurants in Marlow, Buckinghamshire, and in London. He signed a letter in support of Labour before last year’s election and said that while he still backed the party, he disagreed with Reeves’ business rates changes. He said: “What’s happened post-budget has been incredibly unhelpful for hospitality. You can be supportive of a party in its fundamental politics without having to be 100% behind every particular policy that they make. Rachel Reeves and this position that they’re in at the minute is one that shows a non-understanding of hospitality and the way that it operates. That business rates reversal needs to be looked at across the whole of hospitality. A government spokesman said: “We recognise the significant value pubs bring to communities and the chancellor and prime minister have been clear that we are determined to support them. The £4.3bn support package announced at the Budget was the right thing to do to protect the majority of ratepayers from increases to their business rates bills.”

‘I threw Starmer out my pub and I’d do it again – he’s trying to destroy our trade’: A pub landlord in Bath who once threw Sir Keir Starmer out of his pub has said he’d do it again as the prime minister is “trying to destroy our trade”. Rod Humphris, the landlord of The Raven in the heart of Bath, ejected Starmer from the pub in April 2021, when he visited on a walkabout as leader of the opposition. “I hadn’t known Starmer would turn up,” Humphris, told The Telegraph five years on. “I had simply been told it would be someone from the Labour Party, so I was expecting a local councillor. But as soon as I saw him, I decided there was no way I wasn’t going to talk to him.” Confronting Starmer, Humphris told the Labour leader that he had failed to hold the government to account over its implementation of strict covid lockdowns. When Starmer – not realising he was The Raven’s landlord – then attempted to escape by entering the pub, Humphris followed yelling: “That man is not allowed in my pub.” He went on to say: “Until that point, I’d always been a Labour voter, but I was simply furious that, as the opposition, they weren’t sticking up for the poor and vulnerable, who were most affected by the lockdowns.” Humphris says The Raven – which he has owned since 2004 and employs around 80 staff – is “weathering the storm” of the current headwinds facing pubs, but Labour’s policies have already had a significant impact on its finances. “I employ about 40 young people, so their wages have gone up with the rise in minimum wage,” he said. “But this rise has had a knock-on effect across all pay grades. There has to be a hierarchical structure to reward the more skilled staff, so all my employees have had a pay rise.” The national insurance increase is, he says, a “massive disincentive to employ people”. He said: “In busy months, we’ve always taken a chance on young people. But now we will think much harder before taking that chance. This is sad because I personally think everyone should work in a pub when they are young. It improves confidence, helps social skills and brings a breadth of experience to life.” He has yet to discover his business rates for the next financial year, but he suspects it will “be horrible”. He said: “The pub trade is already highly taxed – with alcohol duty, VAT and employment duties. To give us a fighting chance, they have been going gentle on rates and now they are taking [the discount] away.” He added: “We do everything we can to make our pub welcoming. It’s the simple things – offering the best craft beers, making sure customers leave happier than when they arrived. Everyone is welcome here. Except, of course, for Starmer.”