Taste for pub food brings sales lift for Marston’s

marston’s said like-for-like sales for the financial year rose on strong demand for pub meals, and the pubs and brewing group expects to open 25 new pub-restaurants this year.

The company, which runs more than 2,150 pubs across Britain, including 200 in Yorkshire, said like-for-like sales in its managed pubs division was up 2.9 percent from last year, including a 5 per cent growth in food sales.

Food sales for Marston’s, which brews Marston’s Pedigree and Hobgoblin beer, accounts for about 42 per cent of total revenue.

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Like-for-like sales for the 10 weeks to October 1 were up 2.9 per cent, it said.

Pre-tax profit, before exceptional items, for the year were in line with expectations with an improvement in all trading divisions, the company said in a statement.

Meanwhile, rising cereal and glass costs mean beer prices will continue to surge in the months ahead, the brewer of real ales Spitfire and Bishops Finger warned yesterday.

Shepherd Neame said inflationary pressures intensified in recent months, with cereals such as barley up to 30 per cent more expensive than a year ago, while the price of glass has also increased, pushing up the cost of beer bottles and pint jars.

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As a result of growing cost pressures and annual hikes in alcohol duty, beer prices across the industry are set to show inflation-busting increases over the next year, on top of rises in recent months, it warned.

Chief executive Jonathan Neame said: “The price of a pint in the coming year is definitely going to have to go up.

“There’s no avoiding it – it will go up above the rate of inflation, which will put pressure on price sensitive pubs and it’s not good for jobs or growth.”

Shepherd’s warning came as it delivered upbeat results for the year to June 25, with sales up 5 per cent to £121.3m and operating profits 3 per cent higher at £12.3m.

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Volumes of its own brewed beer, including Master Brew, increased 2.6 per cent, bucking a fall of 7.1 per cent across the industry, and it reported improving trends in its managed pubs estate.

Shepherd will try to “keep its prices as sensible as possible”, added Mr Neame, but he said the company would not be able to absorb all the cost press- ures.

The brewer put its prices up by about 10p to 15p earlier in the year, he added, which was less than many of its rivals.

Mr Neame hit out at the Government’s duty escalator, which sees duty increase by 2 per cent above retail price inflation every year, calling it “ridiculous”.