Propel Newsletter Archive Page

Starbucks reports shift to franchising created ‘momentous’ year: Starbucks UK has filed documents at Companies House that provide detail on how a shift to franchising in the UK produced a ‘momentous’ shift in its UK fortunes. The company reported a pre-tax profit of £33,216,739 (2014: £1,988,333) in the year ended 27 September 2015 on turnover of £405,641,634, down from £408,721,070 the year before. Operating profit jumped by £25.8m to £27,877,483 (2014: £1,930,332). Operating margin rose to 6.9% (2014: 0.5%). The number of licensed and franchised stores rose by a net 14 and 94. A total of 78 company-owned stores were closed or sold. Like-for-like rose by 3.8% (2014: 5.9%). The company said it had renegotiated leases, reduced its cost of goods by 3.7%, reduced administrative costs by 5% and staff costs by 5.9% as head count reduced when stores were converted to franchise. Detailed figures show the shifting pattern of Starbucks UK income. Company owned stores produced £335,840,309 of income (2014: £350,924,476), licensed stores produced £24,337,006 of income (2104: £23,665,324) and franchised stores produced revenue of £45,464,319 (2014: £34,131,270). There was also a £6,209,990 profit from the disposal of fixed assets.

Industry News:

£200m wiped off the value of The Restaurant Group after company is hit by floods: More than £200m was wiped off the value of The Restaurant Group yesterday after it revealed it had been a casualty of the winter floods and warned the looming European Union referendum and wider economic uncertainty could rattle consumers. Analyst Simon French estimated like-for-like declined by 1.5% in the past seven weeks. Shares in the company dropped by 16.4% to 534p at one point, their heaviest tumble in more than seven years, after the firm unsettled investors with weaker-than-expected figures that pointed towards falling sales in the final seven weeks of the year. Chief executive Danny Breithaupt said: “We suffered heavily with the flooding in the north of England, we had 11 restaurants shut for the best part of two weeks, which is a lot of sales to lose over Christmas. Those poor people in the north are still recovering, the last thing they’re thinking about is going out to eat.” (See Company News for analyst reaction)

AB InBev completes bond deal to fund SABMiller buy: Anheuser-Busch InBev has completed a $46bn, seven-part bond deal to help finance its acquisition of fellow brewing company SABMiller, in what is the second-largest corporate debt offering in the US. Investors had put in orders for $117bn – the biggest backlog of orders recorded, Thomson Reuters reported. Brendan Hanley, Bank of America Merrill Lynch’s co-head of investment-grade capital markets in the Americas, said the AB InBev bond offering was attractive to investors because of the “strength of its credit profile, global brands and strong track record with bondholders”. AB InBev agreed to buy SABMiller in November for $106bn, largely in cash, to create a global beer brewing giant, with annual revenue of $64bn. The deal is expected to attract regulatory scrutiny given the combined company’s size and dominance in several markets. The size of the deal fell just shy of breaking the record $49bn of debt raised in a deal by Verizon in 2013 to finance the acquisition of a 45% stake in its wireless unit held by Vodafone of the UK.

Crowdcube to open Manchester office next month, reveals 100 food and beverage businesses funded: Crowdfunding platform Crowdcube is set to open a new office in central Manchester. Opening in February, the new branch will make it easier for local young businesses to obtain finance by using equity crowdfunding over traditional sources. Crowdcube has already helped nine businesses in the north west to raise more than £1.4 million in the past two years, including Manchester-based Ideas Britain which recently secured £270,000 to launch in the UK. Crowdcube commercial director Matt Cooper said: “We are determined to put Crowdcube at the heart of the creation of the northern powerhouse. We already have a vibrant investor community in the north of England and there is definitely an exciting opportunity to further stimulate the start-up scene in the north west that is already benefiting from the Government’s multimillion-pound support for the region. Whilst we already work with businesses from across the UK from our existing offices in Devon and London, there’s no substitute for having boots on the ground; people who are in touch with the local business buzz and can get involved with entrepreneurs face-to-face.” Meanwhile, Crowdcube has revealed almost one-third of its 345 funded businesses have come from the food and beverage sector. It stated: “Our #FundedClub is made up of 345 successful raises, with 100 of those businesses trading within the food and beverage sector. Our savvy crowd of investors have made more than 23,000 successful investments into this sector on Crowdcube, which equates to over £43m of funding to date.”

Law firm launches class action against Chipotle on behalf of shareholders: US law firm Robbins Arroyo has filed a class action on behalf of shareholders against Chipotle in the Southern District of New York. The complaint alleges that officers and directors of Chipotle violated the Securities Exchange Act of 1934 between February 4, 2015, and January 5, 2016, by making materially false and misleading statements about Chipotle’s business prospects. According to the complaint, Chipotle failed to disclose to investors that its quality controls were neither in compliance with consumer and workplace safety regulations, nor adequate to safeguard consumer and employee health. Over the past several months, Chipotle has been the subject of multiple health investigations. Chipotle stock declined throughout these various health incidents, falling from $745.92 per share on August 18, 2015, to close at $426.67 on January 6, 2015.

SIBA relaunches Brewery Business Awards: The Society of Independent Brewers (SIBA) has relaunched its Brewery Business Awards for 2016 to include new Retail Business Award categories for the UK’s best Independent Craft Beer Retailer, best Bar/Pub, and best Restaurant, plus two more awards for Best Independent Craft Beer Promotion in the on and off-trade. The awards look to congratulate excellence in independent craft brewing across a variety of categories, from pump clip, can and bottle design, to efforts taken by brewers to make their business more eco-friendly or to support their local community. The new categories expand the scope of the awards to include the retailers, pubs and bars, which play such an important role in this growing industry. SIBA operations director Nick Stafford said: “The SIBA Business Awards cover a wide spectrum of subjects but ultimately they are about highlighting the excellent achievements being made across the brewing industry, which has always been an innovative and open-minded industry. This year the awards are bigger and better than ever and we would encourage anybody involved in the brewing industry to look carefully at which categories could be relevant to them. Competition will be fierce but being named the best in your industry could be priceless.”

Luke Johnson – record number of businesses started in the UK for fourth consecutive year: A Centre for Entrepreneurs (CFE) study has found that 2015 was a record year for start-up formation in Britain. The CFE, an independent non-profit think-tank, said 608,100 new enterprises were formed in 2015, compared with 581,173 start-ups in 2014. Luke Johnson, CFE chairman, said: “The UK has sustained start-up activity despite the economic recovery providing employment opportunities in established businesses. We have seen a record number of new businesses created for four consecutive years, proving that entrepreneurship has become ingrained within the UK’s business culture. This is something we should celebrate and something we should continue to nurture through sensible and incentivising Government policies.” The combined authorities of London topped the list last year, with 196,146 start-ups created, an increase on the 187,632 recorded in 2014. Leeds came fourth, behind Birmingham and Manchester, with 6,926 start-ups formed in 2015, which is up on the 6,623 recorded in 2014. Bradford was 11th with 3,859 start-ups formed last year, up from 3,517 the year before. Sheffield came 13th with 3,713 start-ups established last year, an increase on the 3,368 recorded in 2014.

Top chef calls for sugary drinks tax in Scotland: The chef at Scotland’s only two Michelin-starred restaurant has called on the Scottish government to introduce a tax on sugary drinks north of the border, Holyrood magazine reported. Andrew Fairlie, who runs the restaurant in the five-star Gleneagles Hotel, has lent his name to a campaign to introduce a tax on sugary drinks, which has been supported by TV chef Jamie Oliver. Fairlie said: “You have to ask yourself why you wouldn’t apply a tax to a product that is causing such major health problems to our children.” Fairlie is due to speak at an event in Edinburgh next week held by sustainable food consultancy Source. David Cameron refused to rule out the possibility of a similar tax in England last week after a study reported that a 10% levy in Mexico had cut sales of sugary drinks by 12% in a year.

Company News:

Deltic Group sees 183% increase in advanced sales after redeveloping website: Bar and nightclub operator Deltic Group, led by Peter Marks, said it had seen an 183% increase in advanced sales since redeveloping its website. Head of marketing Tim Howard told the Propel and Elliotts Advanced Marketing Masterclass that the substantial rise was down to using database-driven activity with the new-look site having been introduced in September. He said: “Everything we do now is through our customer databases. People lead busy lives and customers want to reserve their time and want to make sure things go according to plan. Part of our strategy is getting people engaged in what we do and booking early. If they book early, they will turn up. Customers say one thing and do another so we spend time trying to lessen the gap between them. We have focus groups. People are everything. They are our currency. Everything we do is for our customers. We listen to them and change. If we stay where we are then we will go bust.” Howard said Deltic had been supporting its website with social media. He said: “We do Facebook and Twitter and are moving into Instagram because that’s what our customers are now using. From all that we can start to build a profile.” Talking about the website change, he said: “We stripped it out and it’s now a lot quicker. They are selling-machines now. If you go on there at night you will be offered tickets, if it’s during the day then it will be a booth. Customers can book their own packages tailored to them. We also added a Facebook log-in, which has opened us up to even more information.” Howard said Deltic gets 1,000 leads a week through social media, the company’s app had 120,000 users, while 70% of all purchases were made via a mobile phone. He added: “We have worked to develop the app. The whole point of it is having sight of what people do and buy and from that we can take people through a journey.” Deltic is also using dashboards for reportage, which allows the company to look at the performance of individual venues as well as a host of other information. Howard added: “We challenge the traditional way of doing things. We are not scared of having a go. We are not scared of aborting projects. If things change in a week then we will change. It’s been a total change in culture. With the website we went straight in – it was all or nothing. Why go small when you can go big? Going big changes the culture quicker.”

Loungers reports total sales up 44.9% in December: Loungers has reported that year-on-year sales for the four weeks ending 3 January rose 44.9% after posting total net sales for the period of £6,865,000. The company, which opened two new Lounge sites in Swansea and Bury St Edmunds in the lead-up to Christmas, also confirmed that sales at its 12 Cosy Club sites accounted for almost 32% of total sales for the period. Loungers managing director Nick Collins said: “We enjoyed strong trading over the Christmas period with the vast majority of sites posting new weekly sales records. We’re very happy with the performance of the whole estate and in particular sales at the Cosy Clubs were extremely pleasing.” The news comes following the group’s latest opening, Cappello Lounge in Newcastle-under-Lyme, which opened on Wednesday (13 January) in a 3,400 square foot former building society. It is understood the group will open its latest Cosy Club in Hereford in February along with Lounge openings in Hinckley and Newquay in the same month.

Simon French – The Restaurant Group trading update is disappointing: Cenkos Securities leisure analyst Simon French has described yesterday’s year-end trading update as “disappointing”. Issuing, however, a ‘Buy’ recommendation with a 638p price target, he said: “Restaurant Group has released a disappointing year-end update with like-for-like sales growth of 1.5% for the FY implying c-1.5% in the last seven weeks, well below the peer group we believe. The issues could be temporary, with weather in the north of England and reduced footfall in some major shopping locations impacting demand. However, the group will have benefited from the cinema film slate so overall we are concerned that some of the issues are company specific, particularly Frankie & Benny’s. However, margins have expanded in the period and we expect them to be up c30bps for the FY reflecting food price deflation and supply chain initiatives. Overall, therefore, we increase our PBT estimate by £400k to £86.4m. For 2016 we have reduced our PBT estimate by £200k to £94.1m to reflect the lower sales base but we assume the group can deliver 2.5% like-for-like sales growth in part reflecting weaker comparatives. We think the market will be disappointed and the valuation of 8.3x adj EV/Ebitdar (17.5x P/E) in 2016 doesn’t allow for downgrades so we expect the share price to fall today but the 2.9% yield remains attractive.” Nick Batram, leisure analyst at Peel Hunt, said confidence would be shaken by The Restaurant Group’s update. He said: “The post-close was disappointing and accompanied by a cautious statement; confidence in what was once a sector star will be shaken. RTN is a good business and there is little doubt that the trading backdrop is more difficult. However, we feel the valuation, which was driven by DCF, is likely to be more influenced by short-term valuation metrics until confidence can be rebuilt. Therefore, we move to ‘Sell’ from ‘Add’.”

Three Belfast pubs sold to separate buyers for more than £5m: Three Belfast pubs, Botanic Inn, King’s Head and Madison’s, which previously traded as part of Botanic Inns, will be sold to separate buyers in deals worth more than £5m. Popular student and sports pub the Botanic Inn, in Malone Road, is being sold to the Mooney Hotel Group – owners of neighbouring Wellington Park Hotel – for £2.5m. Meanwhile, the King’s Head in Lisburn Road has been purchased by Wine Inns for £2.2m, and it is understood property developer Shamus Jennings is to pay £1.75m for Madison’s Hotel in Botanic Avenue, the Belfast Telegraph revealed. Botanic Inns was a leading pub and hotel operator in Northern Ireland, with up to 16 properties until high rents and spiralling debts led to the group entering administration in 2013. It is understood contracts for the three transactions have been exchanged but the deals are not due to be completed until the beginning of February.

Cabana capturing new customers by using campaigns to bridge the gap between ‘digital and physical world’, sees 97% increase in website traffic: Brazilian barbecue restaurant Cabana has reported that it has developed marketing using campaigns to bridge the gap between the “digital and physical world”, helping raise awareness of the brand and capture new customers. Head of marketing Lizzy Barber told the Propel and Elliotts Advanced Marketing Masterclass that sharing content more to do with the wider appeal of the brand than the restaurant itself had been a success. She said it had done this through its #WeareBrasil campaign, which won the best social media campaign of the year/best use of social media accolade at the Eat Out Awards. The hashtag led people to Facebook and Twitter posts highlighting the good news stories behind Cabana and Brazil in general and raised awareness of the company. That, in turn, helped with its opening in Brixton, south London – an area that was not “particularly welcoming” to chains, said Barber. She added: “It’s about bridging the gap between the physical world of the restaurant and the digital world. We shared content that had a wider appeal to the brand. It’s not necessarily about the product. This strategy has certainly helped raise awareness of Cabana as a brand.” Barber also stressed the importance of having “call to action” points on a website and using key words. Since adding 200 additional “search engine optimisation” words, Cabana had seen a 97% increase in traffic to its website. She added: “The other key thing is having a site that works for mobile. If you don’t have that you might as well go home now. 33% of people say their mobile is the most important for going online. And as for older customers who, you may think, might not use mobile, the number of 55-year-olds and above using smartphones has trebled since 2012 to 50%.” Barber added: “There is an audience that is probably aware of you as a brand but do not necessarily dine with you. Social media can help increase your reach of potential customers by having a conversation with them. Another thing is using email data. If you have a customer’s email you have a link to them. It is the digital equivalent of having a business card. However, you need to use that data effectively and target the right audience to spread your message. People get so many emails today so try to personalise them where possible. It’s no good sending information about a new opening in Brixton to people in Manchester.”

DJ to launch innovative health food concept Shot: A leading London DJ is to open an innovative healthy food and cold press juice concept, Shot, in the Bride Lane, St Paul’s, London this Spring. The concept aims to educate, as well as offer a delicious menu, designed to ensure that every ingredient used offers direct health benefits. Founders Asad Naqvi and Rahil Malik have created Shot as a result of their own search for something more from the healthy food market. Having worked in the nightlife industry for a number of years as music director and resident DJ at many notable nightclubs such as, The Box Soho, The Arts Club, Annabel’s, and Tape London, Naqvi found the only way to keep active and stay fit through the late nights and early mornings, was through regular training and eating clean. However, he was largely dissatisfied with the “healthy” options available, as well as the lack of information provided about them. Malik worked in Canary Wharf at Citigroup for 14 years and he experienced that same dissatisfaction when regularly ordering food deliveries during late nights spent at the office. Teaming up with nutritionist Alice Mackintosh, the Shot concept was born. Naqvi said: “I have always stood by the notion that the key to life is balance. We at Shot have built our brand on this very principle. We have worked tirelessly over the last year to develop a menu that is nutritionally balanced, delightfully flavoursome, and uncompromisingly transparent.”

Easyhotel acquires Ipswich site: Easyhotel, the owner, developer, operator and franchisor of “super budget” branded hotels, has conditionally acquired 3-5 Northgate Street in Ipswich, which it intends to convert into an Easyhotel. The purchase of the property is subject to Easyhotel obtaining planning consent. The project reflects the Group’s strategy to develop hotels in the UK in areas with strong demand for low-cost accommodation. Previously used as a nightclub, the grade two-listed property is prominently situated in Northgate Street, adjacent to the junction with Tavern Street, the town’s principal retail area. The group plans to convert the building into a 94-room Easyhotel, which is expected to open in 2017. The total cost of the purchase and conversion of the building will be about £4m. Chief executive Guy Parsons said: “We are delighted to be investing in the vibrant cultural centre of Ipswich, which is a gateway to the UK’s highly popular east coast. We expect to benefit from growing local business and tourism in the area as we extend our owned brand presence in the UK.”

JD Wetherspoon places top of UK brands in YouGov brand survey: JD Wetherspoon has come top in a YouGov list of Britain’s favourite fast food and pub chains. The pub chain came out on top in YouGov’s BrandIndex 2015, which asks respondents ‘If you’ve heard anything about the brand in the last two weeks, through advertising, news or word of mouth, was it positive or negative?’ Wetherspoon’s scored 6.4 in the top buzz rankings of fast food and pubs, almost double that of second place Nando’s, which scored 3.9. Costa Coffee (3.9), Greggs (3.1) and Toby Carvery (2.5) completed the top five. Starbucks was the most improved brand, which has seen a 1.3 increase in its buzz rating from 2014, but still leaving it with an overall ranking of -3.2. McDonald’s and Subway both improved their scores by 1.0, leaving them with a score of -4.5 and 1.9 respectively.

Inamo Covent Garden launches first ‘guest blogger dish’: Lucy Boler, writer of popular food blog Food Goblin, will provide Inamo’s first ‘Guest Blogger Dish’, with an exclusive menu item that will be available at the new Inamo Covent Garden during February. Boler said her dish would feature pork and crackling, plus “a rich, unctuous glaze punctuated with chilli, a fresh herb coleslaw and Chinese Kale”. Inamo co-founder Noel Hunwick said: “With food bloggers and their blogs becoming increasingly influential in the foodie-sphere, we saw a great creative opportunity to engage new diners with Inamo as well as making our guests aware of the best food bloggers, such as Lucy. We can’t wait for this dish to go live on the menu.” Inamo will create other ‘Guest Blogger Dishes’ throughout 2016.

Madonna wedding venue reports another year of losses: The company which runs the exclusive Carnegie Club resort at Skibo Castle, near Dornoch, slid further into the red in its 2014/15 trading year. Accounts lodged at Companies House reveal Skibo Ltd suffered pre-tax losses of £1.53m during the 12 months to March 31, compared with losses of £636,000 the year before. But turnover rose by more than £1m to £9.8m in the latest period and bosses said they were “satisfied” with the overall financial performance. The business has been loss-making for years – it last made profits during the 15-month trading period to March 31, 2006. It is owned by multimillionaire US-based fund manager Ellis Short. Short, who also owns and is chairman of English Premiership football club Sunderland, bought the Highland retreat of the rich and famous in 2003 for a reported £23m. It was previously owned by US investment fund Westbrook Partners and UK-based entrepreneur Peter de Savary, who bought the castle in July, 1990, restored it and turned it into the exclusive private members’ club. It was thrown into the spotlight in 2000 when pop icon Madonna married film director Guy Ritchie there.

Brent Council set to buy Greene King pub for £2.75m: Brent Council is set to buy Greene King’s The Falcon pub in Kilburn Lane, Queen’s Park, for £2.75m. The Falcon Pub, which is still open and trading in Kilburn Lane, sits on a prime site within the council’s proposed South Kilburn Regeneration Zone. It looks set to be demolished and replaced with a housing development. In a cabinet meeting next week, Coun Margaret McLennan, lead member for regeneration and housing, will ask for an undisclosed sum to buy the site, which went on the market in October. A Greene King spokesman said: “The Falcon pub is in the process of being sold to Brent Council. The pub remains open and trading as usual to customers until the sale is complete. We are supporting our licensee and keeping them fully informed.”

New brand KIN+ILK to open three coffee shops in Cardiff: A new family of artisan coffee shops aimed at business and creative communities has been launched in Cardiff. New brand KIN+ILK plans to open three shops in key business districts in the city centre, creating up to 30 jobs. Capital Quarter in the Cardiff Enterprise Zone will be the first. KIN+ILK said it aims to develop its venues for businesses and freelancers to meet, as well as local artists, designers and photographers to exhibit in. David Davies, managing director, said: “We have a strong vision for KIN+ILK, creating distinctively designed venues with great coffee, food and drink that brings together creative, business and entrepreneurial people to meet, eat, drink, connect and collaborate in calm and inclusive spaces.” Davies said the company had also acquired sites in Pontcanna and Cardiff Bay for launch later this year and, in time, wanted to extend the brand into other UK cities with vibrant business centres.

Cote Brasserie submits plan to open £1m site in Peterborough: Agents acting for Cote Brasserie have submitted plans to open a £1m site in Peterborough city centre – the company wants to convert the Santander bank branch in Church Street with a view to opening later this year, possibly in the summer. A drinks licence for the premises has already been granted by the city council, the Peterborough Telegraph reported. The proposals involve seating for more than 140 diners on the ground and first floors, with an awning at the front of the building and seating for about 12 diners outside. A spokeswoman said the cost of refurbishment would be in the region of £1m and would create about 40 jobs in front and back of house roles. She said: “We’ve been looking for a spot in Peterborough for some time and are very excited to have secured this site, just near the stunning cathedral.”

Eric Paxman to open Huddersfield’s first gourmet burger restaurant: Leading chef Eric Paxman has announced he is opening Huddersfield’s first gourmet burger restaurant. The man behind Eric’s in Lidget Street, Lindley, will open PAX Burger next door on the site of La Cocina, which Paxman took over late last year. His new restaurant will open at the end of February. Paxman told The Huddersfield Daily Examiner that the venture will seat 62 people. Diners can choose from seven different types of burger, plus a selection of side dishes, with everything made fresh in the kitchen. Paxman said: “There will be a choice of beef, chicken and lamb plus a vegetarian option, all made with a twist and using as many locally sourced ingredients as possible. We also plan to offer a burger that changes each season as well as one made especially for children.” Twenty jobs are available, including waiting staff, chefs and a restaurant manager.

Bath’s Vino Vino operator to increase pizza competition with new opening: The operator of Vino Vino in Bath is to add to intense competition in the pizza market with a new opening. Builders are carrying out a complete refurbishment at the site of the new restaurant in Seven Dials, Sawclose, near the Thai Balcony and Vino Vino restaurant and Theatre Royal. “The builders have moved in already and it is a very exciting project,” said Ross Mullins, manager of Vino Vino. “Like Vino Vino, it will be a complete refurbishment of two units,” he said. The new restaurant will mean that with PizzaExpress and the Stable nearby, there will be three pizza restaurants a few metres from each other in the Sawclose area of Bath. It is due to be ready in about two months’ time.

Freehold of Travelodge and Pure Gym in Harrogate sold for £7m: A Travelodge and Pure Gym in Harrogate have been sold for £7m in a deal brokered by property consultancy Bilfinger GVA. The sale to CBRE Global Investors of the recently constructed property in the centre of the spa town reflects a yield of 5.65%. It comprises a new gym and hotel investment: the part-ground, first, second and third floors make up a 70-bed Travelodge; while the basement and ground floors are let to Pure Gym. The total rent for the property is £419,000. Ben Hall, regional senior director at Bilfinger GVA Yorkshire, said: “The complex at Tower Street is situated in a prime location, close to the historic town centre. The £7m deal reflects a strong price for this type of asset and demonstrates the pull Harrogate has for investors from outside of the region.”

Buckinghamshire boutique suffered drop in revenues prior to administration: The former owner of a boutique 39-bedroom Buckinghamshire hotel, which was purchased out of administration in a multimillion-pound deal, encountered financial difficulties following a “sharp fall” in wedding bookings and falling room occupancy rates, Insider has reported. Rachael Wilkinson and Matthew Callaghan, of PwC, were appointed joint administrators of Stoke Place Hotel on 9 November, 2015. The company owned and operated Stoke Place, a luxury hotel set in approximately 20.5 acres of grounds based in Stoke Poges, Buckinghamshire. It was recently sold to a subsidiary of Cairn Hotel Group for almost £4m. According to a new report to creditors, the business came under “increasing financial pressure” following a sharp fall in wedding bookings in 2014, combined with falling room occupancy rates and other event bookings. The management sought to address these issues and, with the support of HSBC, the company’s major creditor, developed a turnaround plan. But despite a “substantial increase” in wedding bookings compared with 2014, administrators said the hotel was still unable to achieve the occupancy, event and food and beverage revenues targets in the turnaround plan.

Brown-Foreman to sell Southern Comfort and Tuaca to Sazerac: Brown-Forman has reached an agreement to sell its Southern Comfort and Tuaca trademarks to Sazerac for $543.5m. Brown-Forman chief executive Paul Varga said the decision to sell these brands reflects the company’s evolving portfolio strategy and a continuation of its efforts to focus resources on its highest strategic priorities. Brown-Forman has actively managed its portfolio during the past decade by developing, acquiring and divesting specific brands and categories with the aim of improving the growth and value creation prospects for its business. “We’re proud of the work undertaken over the years by our employees and partners on behalf of Southern Comfort and Tuaca,” said Varga. “Both brands played important roles in the Brown-Forman success story, and we will have fond memories of the enjoyment they brought to consumers, our partners, and to Brown-Forman.”

Papa John’s removes artificial flavours, colours from its menu: Pizza chain Papa John’s said it has removed all artificial colours and flavours from its US menu. It joins a long line of chains that have moved toward more natural ingredients, but is the first US pizza chain to remove them completely, the Chicago Tribune reported. Pizza Hut removed all artificial flavours and colours from its core pizza products sold at US restaurants in July last year, but they are still present in other menu items, a spokesman said. Domino’s uses some dough conditioners, preservatives and fillers, according to its website. A number of other chains have moved to strip out artificial flavours and colours from their menus in the face of growing consumer demand for natural foods.

Itinerary unveiled for second Propel and Thinking Drinkers Craft Beer Retail Study Tour: The itinerary has been unveiled for the second Propel and Thinking Drinkers Craft Beer Retail Study Tour. The event, which this year focuses on south London, takes place on Thursday, 28 January, and will visit seven of the capital’s leading craft beer retailers in an eight-hour period. It starts at the Four Thieves brewpub in Battersea, owned by Laine Pub Company. The tour will then visit hybrid craft beer and bottle shop We Brought Beer in Clapham Junction, which was founded by former BrewDog employee James Hickson, followed by the Craft Beer Co site in Clapham Manor Street. The next stop will be the Crown & Anchor in Brixton run by London Village Inns before heading to independently operated Stormbird in Camberwell Church Street, which was runner-up in the Timeout Love London Awards this year. The tour then continues to Late Knights Brewery’s micro-pub Beer Rebellion in Gypsy Hill and ends at Utobeer’s The Rake in Borough Market. The tour will again be led by Thinking Drinkers, award-winning beer writers Ben McFarland and Tom Sandham, who will provide the latest craft beer facts and figures, market segmentation, analysis and spot up-and-coming trends. The day includes lunch and breakfast and travel between venues by coach. Tickets are £345 for Association of Licensed Multiple Retailers (ALMR) members and £395 for non-ALMR members. To book, email adam.dickinson@propelinfo.com

ALMR National Restaurant Association Study Tour to Chicago open for bookings: The Propel and Association of Licensed Multiple Retailers (ALMR) 2016 Chicago Study Tour is open for bookings. The trip, sponsored by CPL Training and Sky, takes place between Thursday, 19 May, and Monday, 23 May, 2016. The National Restaurant Association (NRA) draws 58,000-plus industry professionals from all 50 states and 100 countries, seeking the latest innovations and up-to-the-minute information about trends and issues. The ALMR trip provides: insights from industry experts on the rise in fast-casual dining, social media, new and emerging brands, menu development, staff management and a host of other issues – with 70 free education sessions at the NRA show. It also involves two tours of Chicago’s hottest concepts and a market overview briefing sessions from US experts. Paul Charity, managing director of Propel Info, said: “The NRA show combined with our tour of Chicago is a fantastic opportunity to find fresh inspiration and understand the emerging trends shaping the fast-changing US market.” For more information or to book, email jo.charity@propelinfo.com

Story of the Day:

Industry News:

Company News: