Mitchells & Butlers – sales have been volatile: Mitchells & Butlers has described sales as volatile in the weeks since reopening. In a Third Quarter trading update, the company stated: “On 12 April we initially opened 16% of our estate for outdoor trading only, building to 44% by 16 May as restrictions eased across Scotland and Wales. During these initial five weeks like-for-like sales were at 63% of pre-covid levels, as previously announced. Since 17 May substantially all of our estate has been open for ten weeks of trading both indoors and outdoors, during which time sales have been volatile. In the first five weeks like-for-like sales were strong at 98% of pre-covid levels, supported in particular by pent up consumer demand on full re-opening. Across the following five weeks activity was slower on average, with like-for-like sales at 89% of pre-covid levels although most recently there has been some sign of improvement following further easing of restrictions on ‘Freedom Day’ in England. Aside from the impact of selected games during the Euros, sales have generally been stronger in suburban and food-led brands, with city centre sites being the most challenged. Total sales year to date, including 18 weeks of enforced closure, are at 35% of pre-covid levels. As at 24 July the group had cash balances on hand of £203m, with undrawn unsecured facilities of £150m. £39m is currently drawn on the liquidity facility within the securitisation.” Phil Urban, chief executive, said: “The continuing uncertainty relating to the pandemic still makes forward guidance difficult, and is likely to do so at least until into the Autumn. However with our diversified portfolio of well-known brands and largely freehold estate, and our continued focus on efficiency though our Ignite programme, supported by a strengthened balance sheet, we are in a strong position coming out of the pandemic as restrictions ease further.”

Operators offering cocktails and specialist spirits increase their presence on updated Premium database of multi-site companies, another new database also released on Friday: Businesses that offer cocktails and specialist spirits are increasing their presence on the Propel Premium database of multi-site companies, which will be released on Friday (30 July), at midday. The Propel Multi-Site Database, which is produced in association with Virgate, will include 71 additions and is exclusively available to subscribers. The 71 new companies operate 477 sites between them and increase the total number of companies on the database to 1,951. Operators include Birmingham-based duo Nick Rendall and Trevean Anderson, who are set to open a second site, with Star Pubs & Bars, called The Rainbow in Digbeth, which will feature a cocktail bar and lounge. Meanwhile, tequila and mezcal bar concept Hacha is set to open its second venue in August, in Brixton Market Row, south London. It will also have a Mirror Margarita bottle shop – named after its award-winning signature cocktail. The go-to database provides company names, the people in charge, how many sites each firm operates, its trading name and its registered name at Companies House if different, and what each business specialises in. In a new feature this year, there is a synopsis of what the business does and significant news associated with it. Premium subscribers will also receive a new database at exactly the same time, at midday, this Friday (30 July). The New Companies Database will focus on the newly announced openings and upcoming launches in the sector and will be updated at the end of every month. Meanwhile, subscribers also have access to another database called Turnover & Profits Blue Book. The Blue Book, which is also updated every month – on the second Friday of the month – provides an insight into UK operator turnover and profitability over five years, profit conversion and directors’ earnings. Subscribers also receive access to Propel’s library of lockdown videos and Friday Wrap interviews and now also have access to a curated video library of the sector’s finest leaders and entrepreneurs, offering their insights on running outstanding businesses in the sector. Premium subscribers also receive their morning newsletter 11 hours early, at 7pm the evening before our 6am send-out; regular video content and regular exclusive columns from Propel insights editor Mark Wingett. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £895 plus VAT – whether they are an operator or a supplier. The regular single subscription rate of £395 plus VAT for operators and £495 plus VAT for suppliers remains the same. Email jo.charity@propelinfo.com to sign up.

McDonald’s UK experiences record digital engagement in Q2, rewards program set for 2022: McDonald’s chief executive Chris Kempczinski has said that the fast-food brand saw record digital engagement in the second quarter of the year. Speaking after McDonald’s had reported global like-for-likes were up 40.5% in its second quarter ending 30 June 2021, Kempczinski said that a significant portion of sales in the UK were “coming through digital channels, where customers place delivery orders and use self-order kiosks as dining rooms reopened”. He also spoke about bringing the brand’s loyalty program – My McDonald’s – to the UK. Year-to-date system-wide sales from digital channels across the brand’s top six markets were almost $8bn – a 70% increase versus the prior year. Kempczinski said: “And that’s why we’re moving aggressively to bring My McDonald’s rewards to our top six markets. We currently have loyalty programs in place in France and the US. Germany and Canada plan to launch My McDonald’s rewards before the end of this year, followed by the UK and Australia in 2022.”

Everyman Media Group reports trading ahead of director expectations: Premium cinema operator Everyman Media Group has reported admissions between re-opening and 1 July have been 66% of 2019, ahead of director expectations. The company stated: “33 venues re-opened safely on 17 May 2021, with Glasgow re-opening on 6 June and Belsize Park closed for refurbishment. The business returned to profit and cash generation on re-opening and for the remainder of the period, social distancing measures remained in place until 19 July. All venues were closed for the first 20 weeks of FY21 due to the covid-19 lockdown. During this time, the business continued to focus on conserving cash and preparing to welcome customers safely back to our venues. In addition, the company used the closure period to upgrade a number of kitchens to improve speed of service and carried out small refurbishments to enhance the customer experience on re-opening. Admissions in the period since re-opening until 1 July reached 66% of 2019 levels, ahead of director expectations. This is despite restrictions such as the Rule of Six, table service, 50% capacity restrictions in venues, and social distancing all being in place during this period. The company is pleased to report that market share has grown since re-opening, re-enforcing the strength of the Everyman offer.” Chief executive Alex Scrimgeour said: “We are delighted to have welcomed back so many Everyman customers since re-opening in May, subsequently delivering a period of profitable, cash-generative trading. The speed and confidence with which the Everyman community has returned, together with our increased market share, demonstrates the ongoing appeal of our offering. People are clearly still looking to spend a great time out with friends and family, in an environment which instils confidence and provides high quality hospitality; now more than ever. With significant available liquidity and more positive market conditions we are excited to be again turning our focus to plans for growth. We’re expecting you, Mr Bond.”

Pozzi to oversee enlarged GB business at C&C Group: Magners cider-maker C&C Group has announced that Andrea Pozzi, chief operating officer, will step down from its board but will remain with the business to take up the role of managing its combined GB businesses: The company announced that Pozzi and Jim Clerkin, non-executive director, have each decided to step down from their respective board roles, with effect from 1 September and 27 October 2021 respectively. At the same time, it announced that Pozzi will remain with C&C and has agreed to take up the role of managing its combined GB businesses, “aligning management structures and guiding us through a significant change programme of simplification and integration”. The enlarged GB business will continue to trade under the existing core fascia of Tennent’s, Matthew Clark and Bibendum. The company said: “Andrea brings a wealth of experience to this important position, having previously led the GB business prior to the acquisition of Matthew Clark and Bibendum. C&C will not replace the executive director role of chief financial officer and current board responsibilities associated with that position will be fulfilled by the remaining executive directors.” Clerkin has advised the company that, as a consequence of his increased work responsibilities in the USA, he is finding it increasingly difficult to give the necessary time commitment required as a non-executive director of C&C. After four years on the board, he has taken the decision to step down from his position in October 2021. C&C said: “We would like to thank Jim for his valued contribution and considerable drinks sector experience he has brought to the board, including his understanding of the North American drinks market.” Pozzi said: “I am excited with the opportunity to lead our enlarged GB business and it is with careful consideration that I felt this role requires my complete focus and dedication. I look forward to driving the next stage of C&C’s evolution in the GB market.” Stewart Gilliland, non-executive chair of C&C, said: “I am delighted that Andrea has agreed to lead our enlarged GB business and I would like to thank Andrea for his significant contribution to the board over the last four years. I would also like to extend my thanks to Jim Clerkin for his valued contribution and the considerable experience he has brought to the board of C&C over the last four years.”

ABInbev reports 3.2% sales growth in Second Quarter: Stella Artois brewer ABInbev has reported 3.2% sales growth over 2019 in the Second Quarter of 2021. Chief executive Michel Doukeris said: “The consistent execution of our commercial strategy centred around winning brands, category development and digital transformation – delivered continued momentum in the second quarter with top-line growth 3.2% ahead of 2Q19 pre-pandemic levels, even in light of ongoing covid-19 impacts. Looking forward, we will continue to build upon our customer-and consumer-first approach to drive growth and value creation.” Of the UK, Paula Lindenberg, president for UK and Ireland, Budweiser Brewing Group, said: “This quarter, which has seen the easing of many lockdown restrictions affecting the hospitality sector, Budweiser Brewing Group UK&I continues to play a critical role in driving the economic recovery forward. To ensure that we are well-placed to capture the continued growth in the off-trade, and the surge in demand as pubs re-open, we’ve recently invested more than £115 million in our UK breweries. These operate around the clock, so we can brew 630 million more pints a year to keep our pub and retail partners stocked up. This quarter, consumers continued to choose our strong portfolio of leading premium and super premium beers. Stella Artois retained its position as the #1 beer brand in the off-trade throughout Q2, while Budweiser remained the #2 beer brand in the off-trade. Corona, the UK’s best-selling World Beer in supermarkets, is performing significantly ahead of the beer category, with a double digit increase in volume sales vs. 2019. Camden Hells saw a strong performance in the off-trade and in Q2 has continued to outperform the total category, nearly doubling in size vs 2019. As pubs re-opened, Budweiser Brewing Group grew volume ahead of the category and saw outstanding performance, with Stella Artois, Camden Hells and Corona draught driving this growth. In April, we launched Bud Light Seltzer. Containing 95 calories per can and 4% ABV, it appeals to those looking for lighter, naturally flavoured options. Seltzer is hugely popular this summer as people re-connect, and consumers are enjoying Bud Light Seltzer both in pubs and through retailers where it’s being sold. We anticipate it will continue to grow in line with the booming UK hard seltzer market, which is forecast to hit £600m by 2025. Budweiser Brewing Group UK&I is a proud British brewer with a strong presence in the UK. Recently we launched a recruitment drive for more than 100 open positions in our commercial business and in our breweries. As a company, we play an important role when it comes to strengthening our communities and building a better, more inclusive and equal world. To widen access to our company and create more diverse routes in the workplace, we launched two Apprenticeship Schemes this quarter. We are committed to creating and developing opportunities for more people to achieve great things, at such an exciting time for our business. We have multiple initiatives to advance diversity and inclusion at all levels throughout our organization. Looking ahead, we are continuing to invest in the UK – in our people, operations, portfolio and in the long-term sustainable recovery of the sector. We are hopeful for the future, and we are well-placed to capture the excitement as consumers across the UK continue to reconnect with loved ones. We will continue to bring our consumers and customers more of what they’re looking for, supporting those around us with the belief that the recovery takes a community, and that we will continue to go further together.”

Diageo reports sales up 8.3%: Diageo has reported sales up 8.3% to £12.7bn with strong organic growth offset by an adverse foreign exchange impact in the year to 30 June 2021. Operating profit increased 74.6% to £3.7bn. Chief executive Ivan Menezes said: “I am very pleased with the strong financial results we have delivered in fiscal 21, while continuing to invest in long-term sustainable growth. We delivered organic net sales growth across all regions, led by a strong performance in North America, and we held or gained off-trade market share in over 85%(i) of our business. These results demonstrate the strength and relevance of our brands and the extraordinary efforts of our talented people. I would like to thank all of my colleagues for their dedication and resilience, and to express my deepest condolences to all who have lost loved ones this year due to the pandemic. I believe that our foundation, built through outstanding brand-building, active portfolio management, consumer-led innovation, smart investment in data analytics tools and embedding a culture of everyday efficiency, has been a key competitive advantage for Diageo. We were well-positioned to successfully manage the challenges created by covid-19, we have responded quickly to changing consumer trends and we have emerged stronger. A key priority has been supporting the hospitality sector through the pandemic, including our $100 million global fund to enable the safe re-opening and recovery of pubs and bars. We have also built on our successful ESG track record with the launch of ‘Society 2030: Spirit of Progress’, our new ten-year action plan to shape a more sustainable and inclusive business. While our business has recovered strongly in fiscal 21, with net sales growth on a constant basis ahead of fiscal 19 in three of our five regions, we expect near-term volatility in some markets. However, I remain optimistic about the growth prospects for our industry, with spirits continuing to gain share of total beverage alcohol globally and premiumisation trends remaining strong. I believe Diageo is very well positioned to capture these exciting opportunities to drive long-term sustainable growth and shareholder value.”