Table of Contents
Issues in the Market
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- Main issues
- Definition
- Abbreviations
Future Opportunities
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- Changing with the times
- Going foodie
- The no Martini lunch
- There’s a (pub) for everyone
- The Recession Question
- Unwind at your local
- A different experience – every day of the week
Market in Brief
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- ‘Quadruple whammy’ hits pub trade…
- …but still a major component of the leisure industry
- Food helps some pubs to stay afloat
- Pub visiting in long-term decline
- Secondary revenue under pressure
- Mitchells & Butlers leads the managed sector…
- …while Enterprise and Punch head tenanted/leased sector
- High-profile administrations hit the headlines…
- …while debt a major issues for others
- Pub-going a habit for a fifth but nearly half visit rarely
- Location, location, location
- Value is the order of the day for promotions
- On the cusp of recovery?
Internal Market Environment
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- Key points
- Pub visiting decline: Temporary blip or lifestyle change?
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- Figure 1: Frequency of visiting pubs/bars for a drink only, 2009
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- Figure 2: Agreement with lifestyle statements, 2005-09
- The changing face of the pub industry
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- Figure 3: Structure of the pub industry, by ownership type, 2004-09
- Figure 4: Net pub closures in the UK, 2005-09
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- Figure 5: Trends in the indexed volume sales of beer, by channel, 2004-09*
- Cost increases widen differential between on- and off-trade prices
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- Figure 6: Trends in all prices versus those of alcoholic drinks, by channel, 2004-09
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- Figure 7: Average price paid for a pint of draught lager in UK, 1990-2008
- Figure 8: Trends in real ale and lager prices in pubs, 2008 and 2009
- Pricier food gobbles up profits
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- Figure 9: Trends in the price of food, 2004-09
- Utility prices surge upwards
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- Figure 10: Trends in the price* of gas and electricity for non-domestic customers, 2004-09
- Fees pain dished out by Sky
- Binge drinking: A problem that won’t go away overnight
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- Figure 11: Trends in UK per capita consumption of 100% alcohol, 2004-08
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- Figure 12: Agreement with statements about drinking, 2005-09
- Pub ties continue to cause resentment
Legislative Factors Affecting Pubs
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- Key points
- Smoking ban: Is the impact wearing off?
- Other legislative issues
- Licensing: is 24-hour drinking a myth?
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- Figure 13: Licensing trends, 2007-09
- Duty calls
- Cigarette vending machines ban further reduces secondary income for pubs
- Plastic glasses: Not the answer?
- Prize boost to revive flagging machine revenues?
- VAT increase adds to woes
Campaigns Affecting Pubs
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- Key points
- Fair Pint
- Proud of Pubs
- The Pub is the Hub
- Best Bar None
- Challenge 21
- Axe The Beer Tax – Save The Pub
- Listen Up!
- Make It The Minimum
- The Independent Pub Confederation
- Local Pubs Week
- Justice for Licensees
- Pub Revolution
Broader Market Environment
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- Key points
- How the present climate is affecting leisure
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- Figure 14: Impact of the recession on leisure activities, March 2009
- GDP recovery shows signs of stalling
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- Figure 15: GDP, PDI, consumer expenditure and savings, at current prices, 2004-14
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- Figure 16: Trends in consumer confidence, May 2008-October 2009
- Figure 17: UK unemployment rates (seasonally adjusted), by quarter, 2004-09
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- Figure 18: UK unemployment rates, by age band (seasonally adjusted), June-August 2009
- Pubs need to woo older consumers
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- Figure 19: Trends in the age structure of the UK population, by gender, 2004-14
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- Figure 20: Forecast adult population trends, by lifestage, 2004-14
Competitive Context
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- Key points
- Pubs fighting a trend towards off-trade drinking
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- Figure 21: Trends in the split of UK household expenditure on alcoholic beverages at constant prices, by channel, 2004-09
- Figure 22: Indexed trends in UK household expenditure on alcoholic beverages at constant prices, 2004-09
- Figure 23: Indexed trends in UK household expenditure on alcoholic beverages at constant prices, by broad sector, 2004-09
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- Figure 24: Split of UK household expenditure on beer at constant prices, by channel, 2004-09
- Figure 25: Split of UK household expenditure on spirits* at constant prices, by channel, 2004-09
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- Figure 26: Split of UK household expenditure on wine, cider and perry* at constant prices, by channel, 2004-09
- Consumer spending priorities
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- Figure 27: Consumer spending priorities, March 2009
- For all its troubles, still a substantial part of the leisure industry
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- Figure 28: Consumer expenditure on selected leisure goods and activities, 2003-08
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Publicity made easy
- Pubs given a sporting chance with 3D
- Cashing in on new machines
- Pubs connect with Wi-Fi
- Easy peasy food prep for licensees
- Helping hand for tenants
- Feed the family
- Carling scores with free advertising
- True Brit
- Game on
Market Size and Forecast
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- Key points
- Market contracts as ‘quadruple-whammy’ hits sales
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- Figure 29: UK pub industry market size trends, 2004-14
- Has 2009 seen trading reach its low point or will it come in 2010?
- Future looking brighter
Segment Performance
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- Key points
- Trend away from wet revenues continues
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- Figure 30: UK pub industry turnover, by market segment, 2004-09
- Food for thought
- Soft drinks outperform alcohol
- Other revenue on the slide
Market Share
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- Key points
- Mitchells & Butlers largest player in turnover terms
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- Figure 31: Leading pub operators in the UK, by turnover, 2009
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- Figure 32: Leading pub operators in the UK, by outlet numbers, 2009
- Figure 33: Leading operators of managed pubs in the UK, by outlet numbers, 2009
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- Figure 34: Leading operators of tenanted/leased pubs in the UK, by outlet numbers, 2009
Companies and Products
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- Key points
- Industry overview
- Pub numbers continue to contract
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- Figure 35: UK pub industry outlet number trends, 2004-09
- Administrations on the rise
- Restructuring debt levels assumed greater importance
- Major players
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- Figure 36: Leading operators and brands in the pub market**, 2009
- Admiral Taverns Limited
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- Figure 37: Admiral Taverns Limited, key financial indicators, 2007 and 2008
- Price promotions
- Enterprise Inns plc
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- Figure 38: Enterprise Inns plc, key financial indicators, 2004-09
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- Figure 39: Enterprise Inns plc, revenue breakdown, 2007 and 2008
- Greene King plc
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- Figure 40: Greene King plc, key financial indicators, 2005-09
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- Figure 41: Greene King plc revenue, by division, 2008 and 2009
- JD Wetherspoon plc
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- Figure 42: JD Wetherspoon plc, key financial indicators, 2005-09^
- Marston’s plc
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- Figure 43: Marston’s plc, key financial indicators, 2004-09,
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- Figure 44: Marston’s plc turnover, by division, 2007 and 2008
- Mitchells & Butlers plc
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- Figure 45: Mitchells & Butlers plc, key financial indicators, 2004-08
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- Figure 46: Mitchells & Butlers plc revenue, by division, 2007-09
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- Figure 47: Mitchells & Butlers plc revenue, by product sector, 2008
- Punch Taverns plc
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- Figure 48: Punch Taverns plc outlet profile, 2007-09
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- Figure 49: Punch Taverns plc, key financial indicators, 2005-09
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- Figure 50: Punch Taverns plc, broad segmental breakdown of revenue, by division, 2007-09
- Figure 51: Punch Taverns plc, detailed segmental breakdown of revenue, by division and product, 2007-09
- Scottish & Newcastle Pub Enterprises
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- Figure 52: Scottish & Newcastle Pub Enterprises (Management) Ltd, key financial indicators, 2005-07
- Whitbread plc
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- Figure 53: Whitbread pub restaurant financials, 2005/06-2008/09
- Selected other operators
- Intertain Ltd
- Orchid Group
- Pubs ‘n’ Bars plc
Brand Communication and Promotion
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- Figure 54: Expenditure on advertising, by selected brewers and pubcos, 2005-09
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- Figure 55: Expenditure on advertising, by selected brewers and pubcos, 2009*
- In for a Tweet
- Customer facing
- It’s a deal
- Pubs vouch for new scheme
- A heady brew
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Brand Elements
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- Key points
- Brand map
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- Figure 56: Attitudes towards and usage of pub and bar brands, July 2009
- Brand qualities of pub and bar brands
- Wetherspoon has comfort, but Revolution has youth appeal
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- Figure 57: Personalities of various pub and bar brands, July 2009
- Experience of pub and bar brands
- Familiarity brings experience
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- Figure 58: Consumer usage of various pub and bar brands, July 2009
- Brand intentions for pub and bar brands
- Slug and Lettuce most considered
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- Figure 59: Consideration of various pub and bar brands, July 2009
- Brand satisfaction for pub and bar brands
- Wetherspoon still best for visitors
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- Figure 60: Satisfaction with various pub and bar brands, July 2009
- Brand commitment to pub and bar brands
- Wetherspoon most preferred
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- Figure 61: Commitment to various pub and bar brands, July 2009
- Revolution
- What the consumer thinks
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- Figure 62: Attitudes towards the Revolution brand, July 2009
- Pitcher & Piano
- What the consumer thinks
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- Figure 63: Attitudes towards the Pitcher & Piano brand, July 2009
- JD Wetherspoon
- What the consumer thinks
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- Figure 64: Attitudes towards the JD Wetherspoon brand, July 2009
Frequency of Visiting a Pub
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- Key points
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- Figure 65: Frequency of visiting a pub to drink, September 2009
- Down the pub once a week
- Weekly pub-goers have cash to splash
Influential Factors in Visiting a Pub
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- Key points
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- Figure 66: Factors influencing choice of pub to visit, September 2009
- Occasion dictates choice of pub
- Location, location, location
- Men looking for convenience and ambience, women for food
- Least affluent demand the best service
- Entertainment and drinks range most important to frequent visitors
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- Figure 67: Most popular frequency of visiting a pub to drink, by factors influencing choice of pub to visit, September 2009
- Figure 68: Next most popular frequency of visiting a pub to drink, by factors influencing choice of pub to visit, September 2009
Pub Promotions
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- Key points
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- Figure 69: Promotional offers that encourage to visit a particular pub venue, September 2009
- Pub-goers develop a taste for free drinks
- Women seduced by free drinks and happy hours
- All-you-can-drink concept catches the imagination among frequent visitors
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- Figure 70: Frequency of visiting a pub to drink, by promotional offers that encourage to visit a particular pub venue, September 2009
- Figure 71: Factors; influence in choosing a pub to visit, by promotional offers that encourage to visit a particular pub venue, September 2009
Appendix – Internal Market Environment
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- Figure 72: Pub/bar visiting for a drink or a meal in the last 12 months, 2005-09
- Figure 73: Trends in the volume sales of beer, by channel, 2004-09*
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- Figure 74: Average price paid for a pint of draught lager in UK, 1990-2008
- Figure 75: Trends in the price of food, 2004-09
- Figure 76: Trends in the price of gas and electricity* for non-domestic customers, 2004-09
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Appendix – Competitive Context
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- Figure 77: Most popular consumer spending priorities, by demographics, March 2009
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Appendix – Frequency of Visiting a Pub
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- Figure 78: Frequency of visiting a pub to drink, by demographics, September 2009
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Appendix – Influential Factors in Visiting a Pub
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- Figure 79: Most popular reason for visiting a pub to drink, by demographics, September 2009
- Figure 80: Next most popular frequenreasons for visiting a pub to drink, by demographics, September 2009 (continued)
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Appendix – Pub Promotions
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- Figure 81: Reasons for visiting a pub to drink, by demographics, September 2009
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