Table of Contents
Introduction
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- Definition
- Abbreviations
Executive Summary
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- The market
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- Figure 1: Forecast for UK pubs industry revenues, 2007-17
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- Figure 2: UK pub industry turnover, by segment, 2012
- Market factors
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- Figure 3: Number of pubs in the UK, 1980-2012
- Low consumer confidence remains a barrier to growth
- Population changes will have notable impacts…
- … as will external factors
- Companies, brands and innovation
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- Figure 4: Turnover of leading pub operators in the UK, 2011-12
- The consumer
- Three in five adults visit pubs for a drink
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- Figure 5: Frequency of visiting pubs/bars for a drink, February 2013
- Tradition and comfort are the leading pub enticements
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- Figure 6: Pub enticements, February 2013
- Clean toilets are important for consumers
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- Figure 7: Pub deterrents, February 2013
- What we think
Issues in the Market
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- What impact will the 2013 budget changes have on pubs?
- Could pub closures be a blessing in disguise?
- How can pubs improve their use to the community?
- How can the leased/tenanted market improve its performance?
Trend Application
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- Trend: No Degree, No Problem
- Trend: Collective Intelligence
- Mintel Futures Trend: Access Anything, Anywhere
Internal Market Environment
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- Key points
- Pub visits are in decline
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- Figure 8: Trends in UK per capita consumption of 100% alcohol, 2006-11
- Pubs remain popular venues but are under threat from rising prices
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- Figure 9: UK excise duty rates for cider, beer, wine and spirits, 2003-12
- Figure 10: Volume trends in the sales of beer, by channel, 2000-12
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- Figure 11: Average price paid for a pint of draught lager/bitter in UK, 1992-2012
- The end of the line for the beer tax escalator
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- Figure 12: UK excise duty rates for selected alcoholic drinks, 2003-13
- On-trade price rises outstrip those in the off-trade
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- Figure 13: Index of price of beer and wine in the on- and off-trade, 2006-12
- Is it last orders for the British pub industry?
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- Figure 14: Number of pubs in the UK, 1980-2012
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- Figure 15: Net number of pub closures, December 2007-September 2012
- The smoking ban continues to be a talking point
- Increasing overhead costs adds to the burden on pub operators
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- Figure 16: Trends in the average rateable value of pubs in England & Wales, 2005-12
- Late night levy and EMROs add further pressures
- Pubs look to build strength in numbers
- Best Bar None (BBN)
- National PubWatch
- Purple Flag
- Business Improvement Districts (BIDs)
- Utility costs are on the rise…
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- Figure 17: Trends in utility prices paid, by non-domestic consumers (excl. the climate change levy), 2007-12
- … with Sky subscriptions also putting the squeeze on publicans
- A new challenger in the market
- The managed pub industry strikes back…
- The Community Right to Bid
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- Figure 18: Structure of the pub industry, by outlet numbers, by ownership type, 2009-12
- Government intervention into tied pubs
- … despite its typically higher prices
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- Figure 19: Average price per measure (£) in the UK on-trade, 2011
Broader Market Environment
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- Key points
- Consumer confidence remains low despite the recession ending
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- Figure 20: Household income vs expenditure per head (£), 1997-2012
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- Figure 21: Consumer Confidence Index, monthly, January 2007-April 2013
- An ageing population is a threat to the pub industry
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- Figure 22: Projected trends in the age structure of the UK population, 2012-17
- The growing C2DE population could be problematic for pubs
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- Figure 23: Changes in the adult socio-economic structure of the UK population, 2012-17
- The weather and high profile events also influence the pub industry
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- Figure 24: Hours of sunshine in the UK, by month, 2008-12
Competitive Context
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- Key points
- Pubs/bars prove to be a resilient part of the leisure landscape
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- Figure 25: Value of the UK leisure industry*, by segment, 2008-12
- Restaurants still lead the way
- Most drinks markets continue to grow in value terms
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- Figure 26: Value sales of selected alcoholic drink categories, 2007-12
Strengths and Weaknesses
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Coverage
- New builds/redevelopments defy the downturn
- Micropubs and pop-up pubs offer variety and a lighter cost base
- Pubs look for new ways of providing on-site entertainment
- Aiming for family appeal
- Tapping into edutainment
- Mobile technology can also help pubs to stand out
- Innovating with cocktails…
- … and with beer
- Self-service
- Focus on quality
- Other
- Limited availability
- Global observations/innovations
Market Size and Forecast
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- Key points
- Value sales continue to nudge upwards in 2012
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- Figure 27: UK pub industry market size and forecast, 2007-17
- Pub numbers expected to continue falling, but at a slower rate
- Forecast
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- Figure 28: Forecast for UK pubs industry revenues, 2007-17
Segment Performance
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- Key points
- Pubs continue to show signs of recovery
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- Figure 29: UK pub industry turnover, by segment, 2009-12
- Alcoholic drinks retain a majority share of on-trade sales
- The growing influence of food
Market Share
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- Key points
- Managed operators enjoy a profitable year while the tenanted/leased market struggles
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- Figure 30: Turnover of leading pub operators in the UK, 2010-11 and 2011-12
- Tenanted/leased operators dominate in terms of outlet numbers
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- Figure 31: Leading pub operators in the UK, by outlet numbers, 2012
Companies and Products
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- Enterprise Inns
- Company overview
- Financial information
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- Figure 32: Key financial data for Enterprise Inns PLC, 2008-12
- Figure 33: Enterprise Inns PLC turnover, by segment, 2011-12
- Strategy and recent developments
- Marketing support
- Greene King
- Company overview
- Financial information
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- Figure 34: Key financial data for Greene King PLC, 2008-12
- Figure 35: Greene King PLC revenue, by segment, 2011-12
- Strategy and recent developments
- Marketing support
- JD Wetherspoon
- Company overview
- Financial information
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- Figure 36: Key financial data for JD Wetherspoon Plc, 2008-12
- Strategy and recent developments
- Marketing support
- Mitchells & Butlers
- Company overview
- Financial information
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- Figure 37: Key financial data for Mitchells & Butler Plc, 2008-12
- Strategy and recent developments
- Marketing support
- Punch Taverns
- Company overview
- Financial information
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- Figure 38: Key financial data for Punch Taverns PLC, 2011-12
- Figure 39: Punch Taverns PLC revenue, by segment, 2011-12
- Strategy and recent developments
- Marketing support
- Spirit Pub Company
- Company overview
- Financial information
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- Figure 40: Key financials Spirit Pub Company PLC, 2010-12
- Figure 41: Spirit Pub Company PLC revenue, by segment, 2011-12
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- Figure 42: Spirit Pub Company PLC average number of pubs, 2010-12
- Strategy and recent developments
- Marketing support
Brand Communication and Promotion
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- Key points
- Above-the-line adspend continues to fall
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- Figure 43: Total above the line adspend in the UK, by selected brewers and pubcos, 2008-12
- Major pubcos lead the way in 2012
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- Figure 44: Expenditure on advertising, by selected brewers and pubcos, 2008-12
- Press dominates the advertising landscape for pubs
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- Figure 45: Expenditure on advertising, by brewers and pubcos, by channel, 2008-12
- Promoting the pub
- Rallying against the government
Consumer – Frequency of Visiting Pubs for a Drink
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- Key points
- Three in five UK adults drink in pubs/bars
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- Figure 46: Frequency of visiting pubs/bars for a drink, February 2013
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- Figure 47: Frequency of visiting pubs/bars for a drink, February 2012 vs February 2013
- One in five adults drink in pubs weekly
- Appealing to the casual drinkers
Consumer – Pub Enticements
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- Key points
- Tradition and comfort are the key enticements for pub operators
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- Figure 48: Pub enticements, February 2013
- Appealing to younger consumers
- Outdoor facilities can appeal to visitors with families
Consumer – Pub Deterrents
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- Key points
- Unclean toilets/facilities drive consumers around the bend
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- Figure 49: Pub deterrents, February 2013
- Good service can also be a key point of difference
- The clientele can shape the pub experience
- High prices are also a notable deterrent
- Many consumers willing to travel to pubs… but look for a reason to do so
Consumer – Pub Concepts
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- Key points
- ‘Try before you buy’ could help to draw drinkers back to pubs
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- Figure 50: Interest in pub concepts, February 2013
- Signature beers and ordering from tables are also popular concepts
- Innovating with payment technology
- Other concepts can help pubs to forge a niche in the pub market
Appendix – Market Size and Forecast
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- Figure 51: Best- and worst-case forecasts for the UK pub industry, by value, 2012-17
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Appendix – Consumer – Frequency of Visiting Pubs for a Drink
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- Figure 52: How respondents would describe their financial situation, by demographics, February 2013
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- Figure 53: Frequency of visiting pubs for a drink, February 2013
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- Figure 54: Most regular frequencies of visiting pubs for a drink, by demographics, February 2013
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- Figure 55: Other frequencies of visiting pubs for a drink, by demographics, February 2013
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- Figure 56: Frequency of visiting pubs for a drink, by most popular pub enticements, February 2013
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- Figure 57: Frequency of visiting pubs for a drink, by next most popular pub enticements, February 2013
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- Figure 58: Frequency of visiting pubs for a drink, by most popular pub deterrents, February 2013
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- Figure 59: Frequency of visiting pubs for a drink, by next most popular pub deterrents, February 2013
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- Figure 60: Frequency of visiting pubs for a drink, by other pub deterrents, February 2013
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Appendix – Consumer – Pub Enticements
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- Figure 61: Pub enticements, February 2013
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- Figure 62: Most popular pub enticements, by demographics, February 2013
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- Figure 63: Next most popular pub enticements, by demographics, February 2013
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- Figure 64: Pub enticements, by frequency of visiting pubs to eat, February 2013
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- Figure 65: Pub enticements, by most popular frequency of visiting pubs for a drink, February 2013
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Appendix – Consumer – Pub Deterrents
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- Figure 66: Pub deterrents, February 2013
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- Figure 67: Most popular pub deterrents, by demographics, February 2013
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- Figure 68: Next most popular pub deterrents, by demographics, February 2013
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- Figure 69: Other pub deterrents, by demographics, February 2013
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- Figure 70: Pub deterrents, by frequency of visiting pubs for a drink, February 2013
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Appendix – Consumer – Pub Concepts
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- Figure 71: Interest in pub concepts, February 2013
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- Figure 72: Most popular pub concepts, by demographics, February 2013
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- Figure 73: Next most popular pub concepts, by demographics, February 2013
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- Figure 74: Interest in pub concepts, by most popular pub enticements, February 2013
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- Figure 75: Interest in pub concepts, by next most popular pub enticements, February 2013
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