Five days to go until Propel’s Talent & Training Conference with focus on how companies can build a culture to attract, develop and retain talent: There are five days to go until Propel’s Talent & Training Conference. The all-day conference takes place on Tuesday, 1 October at One Moorgate Place in London and is open for bookings. The conference will showcase examples of outstanding people culture among companies within the sector and how the industry is attracting talent. Attendees will hear how businesses are developing their teams, dealing with talent shortages and keeping their staff energised. Also new for this year are “parallel sessions”, which offer the chance to deep dive into specialist subjects. For the full speaker schedule, click here. Tickets are £345 plus VAT for operators and £395 plus VAT for suppliers. Premium Club members get a 20% discount. Email: kai.kirkman@propelinfo.comto book places.

Adnams funding proposals not ‘sufficiently attractive’, to divest non-core assets: Suffolk brewer and retailer Adnams delivered sales growth of 6.4% for the six months ended 30 June 2024, but said while proposals to provide additional funding were made, the associated cost of capital meant these were “not sufficiently attractive to merit further consideration” and that in the short-term, the company will focus on divesting non-core assets. The company said the “encouraging” 6.4% growth in sales “justifies the need for further sales initiatives, but reducing overall borrowings is critical for our long-term success”. Interim chairman Simon Townsend said: “As expected, the funding review continues to be progressed, which, given its long-term nature, has implications not just for shareholders but also for our colleagues, customers and communities, where Adnams plays an important role as both a local employer and a significant contributor to the region’s tourism economy. While proposals to provide additional funding were made, the associated cost of capital meant these were not sufficiently attractive to merit further consideration. In the short-term, the company will focus on divesting non-core assets as part of a strategy to rebalance debt levels while preserving those assets critical to our future success, alongside continuing to focus on sales growth across all channels. Our relationship with our banking partner, Barclays, continues to be a key part of our financial plan during this period of transition. Their understanding of our business and flexible approach to our financing have been instrumental in managing our working capital and navigating current challenges. In the wider economy, we are beginning to see better news with the headline consumer price index some three times lower than it was in the first half of 2023. The current inflation rate sits at 2.2%, and we have recently seen an interest rate cut for the first time since 2020. This augurs well for consumer confidence in the second half of the year, although only time will tell if this translates into a growing propensity to spend. In terms of the beer market and Adnams’ trading performance, we had success in the off-trade ale market delivering growth of 2.7% in a market which declined by 6.8% in the first half of the year. The on-trade continues to struggle, with the market down by 3.9% on average and our own sales falling by 6.9%. Within this category, the continuing trend of declining order volumes has put pressure on free trade sales (direct sales to an establishment), which has only partially been mitigated by growing customer numbers. Sales to national accounts (wholesalers and pub groups) saw even greater pressures. The business is currently implementing plans to refocus activities to stem this downward trend and seek out opportunities to get back to growth. On a more positive note, while our own cask sales fell by 2.3% versus the prior year, this compares with a market decline of 8%. Across the business, Ghost Ship 0.5 maintains its position as a star performer and justifies our investment and faith in this sector of the market. Volumes in the period were up 12.5%, and revenues were up 13.3%, as the trend for no and low-alcohol beverages being an attractive alternative in the on-trade is well established and set to continue. Today, one in three visits to pubs and bars are alcohol-free, and two in three visits involve a non-alcoholic drink of some kind. Our managed and tied properties delivered stable results, with growth marginally up on the previous year. Our two hotels achieved occupancy levels significantly above those experienced in pre-covid times and customer net promoter scores remain ahead of our local competitors. Against this backdrop, total sales saw a positive uplift of 6% against the prior year, albeit behind expectations, at £32m. All sales channels improved on 2023, except our free-trade business suffering a fall in sales (2%), with off-trade experiencing significant growth. Contract brewing and distilling revenues had a record first half of the year, as external parties saw us as a trusted partner. Given this success, we will look to maintain and grow this particular avenue of income going forward. The impact of higher revenues and effective cost control has helped us reduce operating losses by 29% to £1.8m compared with the first half of 2023. The business is set to maintain its focus on cash and ensuring working capital in the form of stock, debtors, and creditors is well managed, further supporting the need to improve the strength of our balance sheet. Given we are still sustaining losses, the board will not be recommending an interim dividend. You will be aware that Jonathan Adnams has decided to step down as chair due to health reasons, with the board appointing me as interim chair. I would like to take this opportunity to thank Jonathan on behalf of the business and wider community for the contribution he’s made to Adnams over his 50-year career, including the past 18 as chair. His personal commitment to innovation – in our products and our brewing and distilling capabilities – has been instrumental in building the foundations we continue to benefit from. Not only that, but as a leader he has embodied the principles and values of Adnams to such an extent that they flow through every aspect of our business today. Looking ahead, with consumer confidence and general economic conditions appearing more positive, our asset disposal programme is now underway, and the funds realised will be used to reduce our debt. This, together with our best-ever product line-up, will allow us to explore multiple growth opportunities to utilise our brewing capacity, drive top-line sales and build back to profitability.”

 

Prezzo confirms James Brown as new CEO: Prezzo, the Cain International-backed Italian dining group, has confirmed it has hired James Brown as its new chief executive. Brown joins from Scottish brewer and retailer BrewDog, where he served as chief executive of BrewDog Bars and held several senior leadership roles since 2015. He played a pivotal role in expanding the company’s food and beverage operations, launching both its hotel and franchise business models and driving its growth strategy across international markets. During his tenure, BrewDog grew from 18 sites to 135 globally and is expanding globally with specialist franchise partners in airports and travel hubs. Prior to joining BrewDog, Brown spent nearly a decade at G1 Group (now Scotsman Group), Scotland’s largest independent hospitality operator, managing a portfolio of 58 venues and significantly contributing to the company’s innovation and overall growth. As part of this leadership transition, Dean Challenger, Prezzo’s former chief executive, will reassume his previous role as chief financial officer following Prezzo’s return to profitability. Last month, the business reported pre-tax profit for the year to 31 December 2023 of £5,484,000 against a loss of £31,558,000 the previous year. Revenue stood at £110,375,000 versus £134,696,000 in 2022, after the group’s restructuring saw it close 46 unprofitable sites and significantly reducing central overhead costs in April 2023. Adjusted Ebitda profit for the period was £2.2m (2022: loss of £5.0m). The company said that the restructuring plan contributed a further £4.7m of trading benefit in the year. As a result, the adjusted Ebitda including the restructuring benefit in 2023 was £6.9m (2022: Adjusted Ebitda loss of £4.8m). The company now operates 95 sites. “We are delighted to welcome James to the Prezzo family,” said Jonathan Goldstein, chairman of Prezzo. “Dean’s leadership has put Prezzo in a strong position for future growth, and with James’ wealth of experience, industry expertise, and proven ability to drive success, we are excited to build on this foundation, broaden our reach, and secure lasting success in the competitive dining sector.” Brown, who is also founder of cashless tipping platform Tipjar, added: “I am thrilled to be joining Prezzo at such an important time in its journey. The brand has a proud heritage and immense potential, and I look forward to working closely with the talented team to drive innovation and create outstanding experiences for our customers.” Prezzo features in the Premium Club Turnover & Profits Blue Book, which features 978 companies. Prezzo’s turnover of £110,375,000 for the year ending 31 December 2023 is the 101st highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.

 

Pubs with rooms see year-on-year growth of 4% in accommodation sales: Pubs with rooms saw year-on-year growth of 4% in accommodation sales in July 2024, and a room occupancy rate of 83%, according to new research from CGA by NIQ and RSM. CGA by NIQ said that its extension to its established Hospitality Business Tracker, will now separate revenue from accommodation and indicate the percentage of rooms that have been occupied each month. It includes data from the likes for Fuller’s, Young’s, the Heartwood Collection, Greene King and Punch Pubs. It said that the addition to the tracker reflects growth in the popularity of pubs for overnight stays in Britain.

 

Diageo – global environment ‘remains challenging’: Diageo has said the global environment “remains challenging” and it has made “good progress” with its strategic initiatives. Speaking ahead of the company’s annual general meeting, chief executive Debra Crew said: “Our expectations are unchanged from when we reported our fiscal 24 preliminary results on 30 July 2024. The global environment remains challenging for both our industry and Diageo. While consumers continue to be cautious in this environment, we are focused on strengthening the resilience of our business through operational excellence, productivity and strategic investments to win quality market share. We have made good progress on our strategic initiatives, including our US route-to-market enhancements, and in Nigeria we are progressing well towards completion of the agreement to restructure our business model there. I believe that the fundamentals for global TBA, and particularly the spirits industry, remain strong and am confident that when the consumer environment improves, growth will return and the actions we are taking will position us well to outperform the market.”