Brewer and pub owner Greene King, in a trading update published on 5 May, revealed that the Scottish drink driving legislation has had an adverse affect on sales. Instead of seeing a retail-like-for-like (LFL) sales up 0.8% the figure was impacted negatively by its Scottish sales and was in fact reduced to an uplift of 0.4%. This was despite a record Valentine’s Day sales of £4m.
, chief executive officer, said, “We once again traded well over key events, such as Valentine’s Day and Easter, as customers celebrated and enjoyed these occasions in our pubs. The second half of this financial year, however, has been tougher than the first half, with more difficult comparatives to last year and the additional impact of new drink driving legislation in Scotland.
Looking ahead, we are moving closer to the acquisition of Spirit and, in particular, to next week’s decision by the Competition and Markets Authority. The scheme of arrangement is expected to become effective during the first half of 2015, which will enable us to commence the integration process. The acquisition of Spirit will create the UK’s leading managed pub operator, accelerate our retail expansion strategy and deliver significant synergy opportunities and scale benefits for both sets of shareholders.”
The trading update covered the period for the 51 weeks to 26 April 2015. Its preliminary results for the 52 weeks to 03 May 2015 will be announced on 01 July 2015. The Competition & Markets Authority decision on Spirit acquisition due 11 May.
Although Easter was much earlier than last year, Greene King achieved record sales and LFL sales were up 2.4%. In total, over 800,000 diners were served during the weekend and on Valentine’s Day Prosecco volumes rose by over 150% on last year and 3,600 oysters were sold in Loch Fyne Seafood & Grill.
Excluding the impact of the new drink driving legislation in Scotland, year-to-date LFL sales were up 0.8% and up 0.7% since week 36.
Brewing & Brands own-brewed volume was up 4.1% after 51 weeks. Growth came from all major channels including take home, export and the free trade in England. In terms of brands, Old Speckled Hen, the UK’s leading premium ale brand, achieved volume growth of over 15%.
