Jennings taps into Wards' potential'

by The PMA Team Lakeland brewer Jennings has signed an agreement to produce Wards Best Bitter, which was selling 40,000 barrels a year at its peak and ceased production when Vaux closed the Wards Brewery in Sheffield four years ago.

Jennings, which brews 33,000 barrels a year, believes Wards still has considerable potential in its original heartland.

Managing director Mike Clayton said: "We believe there is latent demand for the product.

Wards BB will extend the overall appeal of our ale portfolio with a beer of Yorkshire heritage.

And we have a right to acquire the brand in the future."

Wards brand owner A&T is already producing Wards in a 500ml bottle and pubs in Sheffield have seen a "positive response" among drinkers.

The decision to brew Wards follows the completion last year of an investment programme at the Jennings brewery.

It is now able to increase production at a "relatively modest cost".

Its Cumberland ale has seen as increase of 24% and 50% in sales to Jennings lessees and free trade customers respectively.

Jennings, which has 125 leased or tenanted pubs, increased operating profit per pubs by 8.9% in the 26 weeks ended 30 August.

It bought five pubs in the first half for a total of £1.84m, an average of £368,000 per pub.

Two more pubs are contracted and one has terms agreed for a total of £750,000, an average of £250,000 a pub.

Clayton said: "We're not prepared to overpay for pubs ­ one of our tactics is to approach freeholders direct before a pub comes onto the market.

It's about buying pubs at a sensible price."

Five pubs have been refurbished at a cost of £300,000 in total with another eight scheduled for work in the second half.

At the same time, four pubs have been sold for a total of £1.2m, a book profit of £150,000 or £37,500 per pub.

During the half year, the proportion of the estate held on the group's Innventures lease increased to 71% compared with 57% at 1 March 2003.