Table of Contents
Issues in the Market
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- Definition
- Abbreviations
Future Opportunities
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- Re-inventing the pub
- Challenging a mindset
Market in Brief
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- Traditional pubs are a dying breed?
- Declining drinks sales but rising food revenues?
- Frequency of visiting pubs declines
- Is the process of consolidation almost at its end?
- The future
Internal Market Environment
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- Key points
- Pub industry in state of flux
- Frequency of visiting the pub continues to fall
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- Figure 1: Frequency of visiting pubs/bars for a drink or for a meal, at least once a week, 2005-09
- Has the concept of going to the pub become less appealing?
- Pub heartland is the North of England
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- Figure 2: Agreement with selected lifestyle statements on drinking, 2005-09
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- Figure 3: Trends in consumption of alcohol, in home versus out of home (past 12 months), 2005-09
- The traditional entertainment which takes place in pubs is under threat
- Pub poker takes off
- World Cup signalled good news for beer sales but supermarkets were the main beneficiaries
- The smoking ban remains bone of contention for pubs
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- Figure 4: Cigarette smoking, by participation in selected leisure activities, October-December 2008
- Drinking less but eating more
- Younger market are drinking less…particularly older and female 18-24s
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- Figure 5: Those who have drunk less alcohol in the past year, by gender and age, March 2010
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- Figure 6: Drinking habits, by where they drink – over-18s and 18-24s, 2009
- The importance of food for the sustainability of pubs
- Opposing forces to pub visiting
- Fragile beer market
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- Figure 7: Trends in all prices versus those of alcoholic drinks, by channel, 2004-10
- Figure 8: Forecast for value sales of total lager and ale market, 2005-10
- Cask ale is, however, causing some excitement in the trade
- Binge drinking
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- Figure 9: Selected attitudes towards drinking, February 2009
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- Figure 10: Agreement with selected lifestyle statements on drinking, by age, 2005-09
- Targeting women
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- Figure 11: Types of drink drunk in a bar/café/pub/restaurant, by gender, 2009
- Using soft drinks to attract growing proportion of non-drinkers
Broader Market Environment
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- Key points
- Consumer confidence affected by recession
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- Figure 12: GFK NOP Consumer Confidence Index, January 2007-June 2010
- Debate over saving a generation of pubs versus controlling binge drinking
- Impact of the new coalition government on the pub industry
- Next year does not looking promising: on-trade prices face further obstacles ahead
- Taxation and Licensing Act up for review this autumn
- Impact of the weather in recent years on pub visiting habits
- Growth of the third age group should benefit pubs
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- Figure 13: Forecast adult population trends, by lifestage, and frequency of visiting the pub, 2010-15
Competitive Context
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- Key points
- How leisure spending priorities are changing
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- Figure 14: Selected consumer attitudes towards spending on leisure activities in the coming year, May 2010
- Wine needs to be taken seriously in order to compete with the off-trade
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- Figure 15: Top places visited for an alcoholic drink in the last 12 months, by top five most popular types of alcohol drunk in the last 12 months, April 2010
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- Figure 16: Alcoholic drinks trends, at current prices, 1999-2009
Strengths and Weaknesses
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Bar Boosters – pooling of ideas to gain new revenue streams
- Wine served in the on-trade gets an upgrade
- Creative wine servings allow the on-trade to stand out
- Serving ‘wine by carafe’ is attracting interest
- Cask beers come to the fore
- Marston's unveils cask revolution
- Marston’s Hobgoblin brand has also launched new-look hand-pull
- Beer festivals create new occasions to visit the pub
- New ‘pub’ openings take a different perspective
- Marston’s has opened its first ‘Magnum’ pub
- Loungers to open new casual dining and drinking concept
- Revival of the authentic station pub experience
Market Value and Forecast
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- Key points
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- Figure 17: UK pub industry market size trends, 2005-15
- Impact of beer tax and VAT increase
- Historically high closure rates prevail
- A difficult journey towards supply and demand equilibrium
- Market forecast to continue to decline
Market Segmentation
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- Key points
- Pub food provides a port in the recessionary storm
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- Figure 18: UK pub industry turnover, by market segment, 2008-10
- Figure 19: Type of pub closures, July-December 2009
- On-trade soft drinks decline in line with market demand, but opportunities exist to grow share
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- Figure 20: Indexed value sales of on-trade soft drinks, by drink type, 2005-10
- Other revenue streams struggling to pay their way
- Gaming and vending machines under threat
- Cigarette vending could be reconsidered
- Pubs to rival coffee chains?
Market Structure
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- Key points
- Emphasis is placed on securing a sustainable future
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- Figure 21: Number of pub outlets, 2005-15
- Independents feel the heat in 2010
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- Figure 22: Structure of the pub industry, by ownership type, 2008-10
- Figure 23: Type of pub closures, July-December 2009
- Pubcos review their ‘tied’ agreements
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- Figure 24: Leading pub operators, by turnover and total outlet numbers, 2009
Companies and Products
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- Major players
- Admiral Taverns Limited
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- Figure 25: Key financial indicators for Admiral Taverns Limited, 2008 and 2009
- Enterprise Inns Plc
- Greene King Plc
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- Figure 26: Greene King Plc, key financial indicator, 2006-10
- Figure 27: Greene King Plc revenue, by division, 2009 and 2010
- Marston’s Plc
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- Figure 28: Marston’s Plc, key financial indicators, 2005-10
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- Figure 29: Marston’s Plc turnover, by division, 2008 and 2009
- Scottish Newcastle Pub Company
- Other updates
- JD Wetherspoon performs well at the value end
- Mitchells & Butlers reduces reliance on drink sales
- The Orchid Group revitalises ‘lost causes’
Brand Elements
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- Key points
- Brand map
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- Figure 30: Attitudes towards and usage of pub brands, May 2010
- Brand qualities of pub brands
- Comfort and welcome most appealing features
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- Figure 2: Personalities of various pub brands, May 2010
- Experience of pubs
- Wetherspoon most visited, bar brands lack awareness
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- Figure 31: Consumer usage of various pubs, May 2010
- Brand consideration for pubs
- Food led pubs most considered
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- Figure 32: Consideration of various pubs, May 2010
- Brand satisfaction for pubs
- Wetherspoon and Toby Carvery most satisfactory
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- Figure 33: Satisfaction with various pubs, May 2010
- Brand commitment to pubs
- Wetherspoon has highest commitment
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- Figure 34: Commitment to various pubs, May 2010
- Brand intentions for pubs
- Food pubs have best retention
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- Figure 35: Future usage intentions for various pubs, May 2010
- Brand recommendation for pubs
- Traditional pubs and local favourites most recommended
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- Figure 36: Recommendation of various pubs
- O’Neill’s
- What the consumer thinks
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- Figure 37: Attitudes towards the O’Neill’s brand, May 2010
- All Bar One
- What the consumer thinks
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- Figure 38: Attitudes towards the All Bar One brand, May 2010
- Pitcher & Piano
- What the consumer thinks
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- Figure 39: Attitudes towards the Pitcher & Piano brand, May 2010
- Revolution
- What the consumer thinks
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- Figure 40: Attitudes towards the Revolution brand, May 2010
- J D Wetherspoon
- What the consumer thinks
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- Figure 41: Attitudes towards the J D Wetherspoon brand, May 2010
Brand Communication and Promotion
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- Key points
- Adspend still to recover pre-recession investment
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- Figure 42: Expenditure on advertising by selected brewers and pubcos, 2005-10*
- Greene King’s aim to become the ‘best branded Beer Company in England’
- Mitchells & Butlers focuses on food
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- Figure 43: Expenditure on advertising by selected brewers and pubcos, by channel, 2010
- Pub chains communicate their support for tenants and adopt new method of recruitment
Frequency of Visiting a Pub
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- Key points
- More people go to the pub for a meal than a drink in 2010
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- Figure 44: Frequency of visiting pub to eat in/drink in, June 2010
- Pub visiting declines with age
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- Figure 45: Frequency of visiting pub to drink in, by age group, June 2010
- Tackling the gender divide
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- Figure 46: Frequency of visiting pub to drink in, by gender, June 2010
- Level of affluence is also a factor
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- Figure 47: Frequency of visiting pub to drink in, by socio-economic group – 18-34s, June 2010
Attitudes towards Pub Visiting
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- Key points
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- Figure 48: Attitudes towards pub visiting, June 2010
- Core market is turning its back on the pub
- Identifying pub dwellers
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- Figure 49: Places visited for an alcoholic drink in the last 12 months, April 2010
What Are Consumers Looking for In a Pub?
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- Key points
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- Figure 50: Factors influencing the decision to go to one pub over another, June 2010
- Welcome is the first priority
- Cask ale revival sparks an interest from consumers
- Music makeover
- Core differences between men’s and women’s preferences
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- Figure 51: Factors influencing the decision to go to one pub over another, by gender, June 2010
- Higher degree of appreciation for local restaurants than local pubs
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- Figure 52: Most popular statements on choosing an independent leisure venue or a well-known national or multinational brand, by regular leisure activities, July 2009
Targeting Pub-goers
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- Key points
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- Figure 53: Attitudes towards pub visiting, by target groups, June 2010
- Pub Snobs
- Traditional-Seekers
- Pub Explorers
- Familiarity-Seekers
- In-frequenters
Appendix – Internal Market Environment
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- Figure 54: Trends in drinking habits, 2002-09
- Figure 55: Agreement with selected lifestyle statements on drinking, 2005-09
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- Figure 56: Frequency of visiting pubs/bars for a drink only, 2005-09
- Figure 57: Frequency of visiting pubs/bars for a meal only, 2005-09
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- Figure 58: Played or taken part in gaming machines (eg in pub/bookmakers) regularly/occasionally, 2005-09
- Figure 59: Watch live sport in a pub, bar or club, 2006-09
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- Figure 60: Drinking habits, 2005-09
- Figure 61: Agreement with selected lifestyle statements, 2005-09
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- Figure 62: Types of drink drunk in a bar/café/pub/restaurant, 2007-09
- Figure 63: Trends in UK per capita consumption of 100% alcohol, 2004-09
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- Figure 64: Agreement with selected lifestyle statements on drinking, by demographics, 2009
- Figure 65: Agreement with selected lifestyle statements on drinking, by demographics, 2009
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- Figure 66: Frequency of visiting pubs/bars for a drink only (day), by demographics, 2009
- Figure 67: Frequency of visiting pubs/bars in the evening for a drink only, by demographics, 2009
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- Figure 68: Frequency of visiting pubs/bars for a meal only (day), by demographics, 2009
- Figure 69: Frequency of visiting pubs/bars for a meal only (evening), by demographics, 2009
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- Figure 70: Played or taken part in gaming machines (eg in pub/bookmakers) regularly/occasionally, by demographics, 2009
- Figure 71: Most televised sports on UK television, 2003-08
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- Figure 72: Watch live sport in a pub, bar or club, by demographics, 2009
- Figure 73: Agreement with selected lifestyle statements, by demographics, 2009
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- Figure 74: Types of drink drunk in a bar/café/pub/restaurant, by demographics, 2009
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Appendix – Broader Market Environment
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- Figure 75: Forecast adult population trends, by lifestage, 2005-15
- Figure 76: Forecast adult population trends, by socio-economic group, 2005-15
- Figure 77: Trends in the age structure of the UK population, by gender, 2005-15
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Appendix – Competitive Context
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- Figure 78: Consumer attitudes towards spending on holidays and leisure activities in the coming year, May 2010
- Figure 79: Places visited for an alcoholic drink in the last 12 months, April 2010
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Appendix – Outlets and Market Share
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- Figure 80: Leading pub operators, by turnover and total outlet numbers, 2009
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Appendix – Frequency of Visiting Pub to Drink
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- Figure 81: Frequency of drinking alcohol, June 2010
- Figure 82: Frequency of visiting pub to eat in/drink in, June 2010
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- Figure 83: Frequency of drinking in pub, by demographics, June 2010
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Appendix – Attitudes towards Pub Visiting
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- Figure 84: Most popular attitudes towards pub visiting, by demographics, June 2010
- Figure 85: Next most popular attitudes towards pub visiting, by demographics, June 2010
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- Figure 86: Attitudes towards pub visiting, by frequency of drinking in pub, June 2010
- Figure 87: Attitudes towards pub visiting, by most popular attitudes towards pub visiting, June 2010
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- Figure 88: Attitudes towards pub visiting, by next most popular attitudes towards pub visiting, June 2010
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Appendix – What Consumers Are Looking For in a Pub
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- Figure 89: Most popular factors influencing the decision to go to one pub over another, by demographics, June 2010
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- Figure 90: Next most popular factors influencing the decision to go to one pub over another, by demographics, June 2010
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- Figure 91: Factors influencing the decision to go to one pub over another, by frequency of drinking in pub, June 2010
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- Figure 92: Factors influencing the decision to go to one pub over another, by most popular factors influencing the decision to go to one pub over another, June 2010
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- Figure 93: Factors influencing the decision to go to one pub over another, by next most popular factors influencing the decision to go to one pub over another, June 2010
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- Figure 94: Factors influencing the decision to go to one pub over another, by other factors influencing the decision to go to one pub over another, June 2010
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- Figure 95: Attitudes towards pub visiting, by most popular factors influencing the decision to go to one pub over another, June 2010
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- Figure 96: Attitudes towards pub visiting, by next most popular factors influencing the decision to go to one pub over another, June 2010
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- Figure 97: Attitudes towards pub visiting, by other factors influencing the decision to go to one pub over another, June 2010
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Appendix – Targeting Pub-goers
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- Figure 98: Attitudes towards pub visiting, by target groups, June 2010
- Figure 99: Target groups, by demographics, June 2010
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- Figure 100: Frequency of visiting pub to drink in, by target groups, June 2010
- Figure 101: Frequency of visiting pub to eat in, by target groups, June 2010
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- Figure 102: Factors influencing the decision to go to one pub over another, by target groups, June 2010
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