Ritchie aims for vertical route
Each week sees a fresh recruit to the merits of vertical integration — brew beer, sell it through your pubs. Film director Guy Ritchie has applied for planning permission to convert derelict farm buildings on his 1,100-acre Ashcombe estate into a microbrewery. His pub estate stands at two venues: the Punchbowl in Mayfair and the Rainbow, Cooksbridge, East Sussex.
M&B moves fast on disposals
The news of the sale of 333 wet-led pubs by Mitchells & Butlers took a lot of people by surprise given that no news was expected before mid-autumn. Chief executive Adam Fowle was quick to acknowledge this last week: "We've arrived at the end of the disposal process sooner than expected." One City analyst wondered whether M&B should have waited a bit before it flogged its boozers. "We are changing horses, but it's a good time to be changing horses," Fowle insisted. Analysts at JP Morgan Cazenove agreed: "This presents a clean exit of a declining EBIT stream. With the 'venues' business, M&B is disposing of an operation with challenges similar to those facing Luminar."
Was holiday timing a factor?
The timing of the M&B announcement is rumoured to have taken a few on the TDR Capital side by surprise as well — they were expecting the deal to be unveiled at least a week later. Could the speeded-up news relate to the fact that M&B chief executive Adam Fowle is on holiday this week?
TCG set to fold sub company
Tattershall Castle Group had an internal reorganisation a few years back that saw 114 sites transferred out of TCG Acquisitions and into other legal entities, leaving it with just 25 low-take units to run and nine closed ones. The remaining sites were placed on the market. Annual accounts suggest that as many as a dozen will end up being sold. But average weekly sales stand at £8,200 across the mini-estate and rent to sales is a slightly scary 27.8%. Losses for the year to 31 August 2009 were a lumpy £26.7m. Now it looks like the end is nigh. Parent company Tattershall Castle Group states that there is no realistic alternative other than ceasing to trade within one year of TCG Acquisitions accounts approval — and that was back in May.
JDW's mega plan for Newcastle
JD Wetherspoon is saving a few bob on building works by converting failed sites. But there's still an appetite for big, ambitious schemes. In Newcastle, the company wants to open its fifth pub by converting a swathe of premises into a mega-pub. The plan would encompass the former Luckies bar, premises that used to a hairdressers, a former restaurant, a former record shop, and a group of offices.
All of them on St Mary's Place. Wetherspoon, which sealed a deal to buy up all the properties at the start of July, is looking for the green light to refurbish the interiors of the buildings, some of which are listed.
Bathams sorts out local turf war
Well done to West Midlands' Bathams, which won itself a mass of brownie points by cutting some grass. A row had been brewing for months between residents on the Rectory Fields estate in Wordsley and Dudley Council, since the authority refused to cut the grassy slope that runs alongside the A491.
The council decided to stop mowing the bank, and around 200 others across the borough, as part of a drive to save around £30,000. But Black Country brewing company Bathams, which owns the nearby New Inn, came to the rescue and offered to pay for the grass to be cut as a one-off gesture of good will.
Boss Matthew Batham said: "Since we bought the New Inn in April 2008 it has received fantastic support from the neighbours, so we were keen to help out." City Diary has seen a picture of pint-swigging masses turning out to thank Bathams.
Pubco incentives to speed up deals
Pile 'em high and sell 'em cheap. Both Enterprise and Punch are in the midst of a disposal programme that is seeing some very affordable freeholds hit the market. And there are incentives on offer too.
Take Enterprise's Showman in Exeter, on the market for £275,000. Local agent King Sturge reports there are bonuses for a quick sale, including £2,000 towards solicitor's fees, a 5% deposit and a 10% negotiable sale price if a buyer can complete the purchase quicker than the deadline. Michael Easton, of King Sturge, said: "(Enterprise) is keen to dispose of it quickly. Once people have made their mind up, they want the job done sooner rather than later." Indeed.
Fans email Ted to keep Cellars open
Music pub the Cellars in Eastney, Southsea, Hants, an Enterprise venue, has been struggling for a while. Now licensee Steve Pitt thinks it could be on the Enterprise "for sale" list — and has enlisted a few mates to campaign against the move. They include Tom Hingley, vocalist with the influential indie band Inspiral Carpets, who is urging all his fans to back moves to keep the Cellars open. Since then a massive campaign to save it has swung into action, with music fans from home and abroad emailing Enterprise Inns boss Ted Tuppen, telling him why he should keep it open. The company insists it's a bit premature, saying it has made no decision on the future of the venue.
Kowszun finds new perch
Good news can travel slowly. Food & Drink Group boss James Kowszun saw the company slide into administration in August 2008. Kowszun, who had joined the company from the equally unfortunate SFI Group, has now found himself a new perch. Earlier this year he became head of finance and company secretary for Bibendum Wine, the £140m turnover wine importer. Kowszun's arrival coincided with a 366% increase in pre-tax profit to £2.1m for the year ending March this year.