Afternoon:
10°c
Signs of life in the pub trade today — at least from the brewers behind Old Speckled Hen.
Beer-maker and pub operator Greene King can plausibly claim to have been one of the few winners in a sector which has been hit hard by the recession and cheap supermarket booze offers. Today it updated investors on its progress since unveiling annual results in July.
In the 17 weeks to the end of August, sales are up 4.6% with food-led pubs leading the way as the UK beer market continues to decline — some estimate that up to seven pubs close every day.
Greene King raised £207 million from a rights issue this year, of which it has so far spent £45 million on buying new pubs and paying down debts. Its biggest recent deal was buying 11 boozers from Punch Taverns including the Bunch of Grapes in Knightsbridge and the St Margaret's Tavern in Twickenham.
Chief executive Rooney Anand says the last few weeks have been “encouraging” though he adds: “We remain cautious on the outlook for the industry and the economy.”
