Jonathan Lawson, CEO, Liberation Group is pleased to report a strong summer of trading across the UK and the Channel Islands within its pubs, brewing and drinks businesses, including its highest ever single week of revenue during August.
Taking the period of 21st May to the 3rd September 2022 total LFL sales across their Managed Pub Division was +6.3% vs 2021 and +30.0% vs 2019. Sales growth has been driven by an encouraging performance on drinks, a robust performance on food and record sales in accommodation demonstrating another strong summer of staycation and an encouraging recovery in business and international guests. A strong performance in the UK has been added to by an encouraging recovery in Guernsey and Jersey, benefitting from strong tourist demand and a gradual return to office working in St Helier, Jersey.
Tenanted partners have come out of the pandemic in a strong position, due to continued support over the last few years, the quality of the assets and the hard work and commitment of the partners and their teams. As a result, Liberation Group have seen an encouraging performance which has benefited, in part, from some targeted investment to drive volumes and with some strategic divestments, they are continuing to build a quality tenanted business with a high average EBITDA per pub.
Within their brewing and drinks division Butcombe has enjoyed a very strong summer including a record August driven by an excellent performance in the Free Trade, with record customer numbers and spend, continued growth of its packaging business and strong sales in their own estate. OBV volumes were 9.5% up on last year driven by strong demand for our keg portfolio of ales and lagers and we have also been encouraged by the robustness of our cask performance with Butcombe Original on target to achieve top 10 status this year within UK cask ales. We have also been continuing to innovate in both keg and cask and have been delighted with the response to our new range of small batch cask ales which are at the forefront of taste and flavour profiles and have sold out within a few days of launching. In September we are launching Tall Tales, our latest addition to our portfolio of keg and bottle beers – a modern Pale Ale drawing inspiration from a famous Bristol tale. We have also seen an excellent reaction in the market to Goram IPA Zero, recently winning a Gold medal and the Country Winner at the World Beer Awards.
They have not been immune to some of the inflation pressures that others have seen within the sector, but believe they are better placed and prepared to manage, mitigate and avoid where possible and balance the need to deliver value for money to their customers whilst also protecting their P&L. Within their managed estate, they have seen strong levels of food inflation, but their local suppliers and dynamic food team have worked together to find alternative products and develop new menus and dishes reducing their exposure to products such as oil where they have seen surges in price.
Despite the obvious headwinds like utility and transport costs they are confident in their ability to deliver a fantastic Christmas for their customers. The ongoing investment into their business is testimony to the belief in their teams and in the potential for the business over the next few years.
butcombe.com
www.liberationgroup.com
