JDW takes on the supermarkets with chilled investment

JD Wetherspoon is combating the rise of the supermarkets by investing in chilled beer across its 662-strong estate.

Up to £20m has been invested to date - with the company believing it can slow the trend of people switching to drink at home by offering them something unique in the pub.

Chief executive officer John Hutson said the work, which would be completed in April, was aimed at keeping the category "fresh and interesting" for consumers.

"By investing in technology we are delivering a pint of lager at between 1 and 3 degrees centigrade," said Hutson. "This can't be matched in the home as fridges cannot go down below 5 degrees centigrade."

The first real fruits of the investment are expected to come through this summer, he said.

Announcing like-for-like sales growth of 7.4 per cent in the six months to January 28, Hutson also said the company was now "reasonably experienced" in running smokefree pubs.

Like-for-like sales in Scotland leapt 5 per cent over the period, despite the smoking ban, with the company attributing the rise to investment in beer gardens and furniture, and a 10 per cent jump in food sales.

But Hutson added that he was expecting a tougher performance in the second half, as the smoking bans in England, Wales and Northern Ireland began to take effect, adding: "It's in the lap of the gods to a certain extent."

Looking to the future, John Hutson said there were huge opportunties ahead for Wetherspoon's to open in smaller towns.

Citing the example of the Jack Fairman in Horley, West Sussex, Hutson said: "There are over 1,000 towns like that which we think are good for Wetherspoon's. In terms of our future offer there is still plenty for us to go at."

The company opened eight new pubs sold three during the period, bringing the tally to 662, while total turnover grew 8 per cent to £438.4m.

Pre-tax profits grew 20 per cent to £32.9m.