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Morning Briefing for pub, restaurant and food wervice operators

Tue 1st Nov 2016 - Conviviality reports sales up 211% after acquisitions
Conviviality reports sales up 211% after acquisitions: Conviviality, the wholesaler and distributor of alcohol and impulse, serving customers through its franchised retail outlets and through hospitality and food service, has reported, for the 26 weeks to 30 October 2016, group unaudited revenues were 211% ahead of last year at £783m (H1 2016 (27 weeks): £252m) and includes revenues from the acquisitions of Matthew Clark on 7 October 2015, Peppermint on 31 December 2015 and Bibendum Group on 20 May 2016.  Following these acquisitions Conviviality has been organised into three business units: Conviviality Direct: The UK's largest independent wholesaler to the on-trade serving 23,000 outlets from national prestige hotel chains to independent food-led pubs and restaurants; Conviviality Retail: the UK's largest franchised off-licence and convenience chain with 358 franchisees and more than 700 retail stores trading primarily under the Bargain Booze, Bargain Booze Select Convenience and Wine Rack fascia; Conviviality Trading: a full service brand and wine agency with activation capability including festivals and events. In the26 weeks, Conviviality Direct sales are up 5.2%, Conviviality Retail sales are up 2.5% and Conviviality Trading sales are up 5.1%. Conviviality Direct generated sales of £515m in the 26 weeks to 30 October compared to sales in the 3 weeks from 7 October 2015 to 31 October 2015 of £60m. Conviviality Retail generated sales of £189m in the 26 weeks to 30 October 2016 (H1 2016 (27 weeks): £191m compared to £184m in the 26 weeks to 31 October 2015. Like for Like sales are (1.7)% reflecting comparisons against the prior year Summer marketing campaign. Stores opened since 2012 continue to trade strongly with like for like store revenue up 1.1%. On 28 October, Conviviality Retail announced a two year supply agreement with Palmer & Harvey to provide lower volume beers wines and spirits.  Conviviality Trading generated sales of £79m in the 26 weeks to 30 October 2016 compared to sales in the 3 weeks from 7 October 2015 to 31 October 2015 of £1m. Sales are 5.1% above the corresponding prior period due to strong growth in Peppermint, Conviviality Trading’s festivals and events business that was acquired on 31 December 2015. Diana Hunter, chief executive of Conviviality, said: "I am pleased that the Group has delivered this strong performance across all divisions during such a transformational period. This further demonstrates the teamwork and dedication of all of our people in maintaining excellent levels of service to their customers. The organic growth in each business unit demonstrates that existing and new customers are increasingly recognising Conviviality as the leading solution provider and distributor to the UK drinks market."


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