Tim Martin slams minimum pricing

JD Wetherspoon boss Tim Martin believes calls for minimum pub pricing schemes will hand more business to supermarkets.

Announcing plans for a series of price cuts designed to restore flagging sales, Mr Martin said: "Minimum-pricing schemes for pubs will, in our opinion, dramatically improve the competitive position of supermarkets and will encourage people to drink at home and elsewhere, which is unlikely to result in an improvement in behaviour."

He said that pubcos like Wetherspoon, as well as brewers such as Samuel Smith and Joseph Holt, and working men's clubs, all have lower-than-average bar prices "but are not generally associated with rowdy behaviour in town centres on Friday and Saturday nights."

The Wetherspoon chairman said: "It would be better to introduce a broad range of measures, such as those relating to selling-up, training, making food available all day in pubs and so on."

In the year to July 25, Wetherspoon's turnover grew 8 per cent to £787.1m, with pre-tax profits falling by 4 per cent to £54.1m. Like-for-like sales declined from 4.8 per cent in the first half to 1.9 per cent in the second six month of the financial year.

Mr Martin said: "After a good first half, sales in the second half of the financial year slowed, which affected profits. This notwithstanding, we achieved another increase in sales per pub to their highest level ever and continue to generate strong cash flow.

"Looking forwards, we have several competitive pricing initiatives to drive sales, in what is a challenging competitive and political climate for pubs."

Pricing moves include a reduction in the price of Carling to £1.49 per pint, and a traditional ale promotion featuring Marston's Burton Bitter at £1.29 and Marston's Pedigree at £1.49.

Wethersoon's like-for-like sales in August were flat, which it said will affect profits in the current financial year.