Door staff shortage impacting public safety & confidence.
The UK Door Security Association (UKSDA) and the Night-Time Industries Association (NTIA) have claimed 75% of UK nightclubs, bars & pubs feel the current shortage of bouncers and door staff affects their ability to ensure public safety in their venues. A further 60% of members surveyed for the market research are also concerned about the wider impact on public confidence to go on nights out.
With 77% of businesses also expecting the situation to further deteriorate as security staff are diverted or recruited to event and festival work over the summer, the UKDSA & NTIA state that government intervention is required quickly. Measures such as an overhaul to the current Private Security Act could help alleviate weakened security staff resources and pressure ahead of the busy events season.
The figures come against a backdrop of safety concerns around the rise in spiking, with one in six students stating they have been spiked on a night out and eight in ten concerned nightlife venues aren’t doing enough. The spiking epidemic has meant an increased focus on the safety of women at night following anti-spiking campaigns. Recent recommendations by the Home Affairs Committee Inquiry included a change to the law so that it includes a specific offence for spiking and a call for police to provide victims with forensic testing.
As venues deal with the challenging economic pressures, they must also consider how to make consumers feel safe to therefore encourage them back in to the night time on trade.
Source: Big Hospitality, The Morning Advertiser, STINT – Student Sentiment Tracker
Platinum Jubilee celebrations expected to give a boost to the already thriving English sparkling wine drinks category.
English wine, of which roughly 70% is sparkling, has seen a surge in demand over the past year as Wine GB estimates sales of English wine rose by roughly 50% during 2021. The drinks category has been growing apace with vineyard plantings in the UK almost doubling in the past eight years and reaching a production level of 8.95m bottles in 2021. The latest market research report from Chapel Down, the largest producer in the UK, further demonstrates the growing strength of the category as 2021 delivered strong profits for the producer with sales of its fizz increasing by 39% from the previous year. While some attribute the drinks trends to champagne drinkers’ newfound appreciation for the nation’s sparkling wine, patriotism also plays a part as producers reported sales spikes during last year’s European Football Championships, according to IWSR.
This year, as further celebrations get underway to mark the monarch’s 70-year-long reign, English sparkling wine producers and drinks brands expect to see an upsurge in sales. Many special editions from popular producers such as Ridgeview and Nyetimber have been launched in to the market to commemorate the event. Buckingham Palace itself has also released its own limited edition which is said to pair nicely with English Cheddar and British seafood. 70,000 ‘Big Lunches’ are planned to take place with an expected ten million people during the extra-long bank holiday in June with many likely to raise a glass of English fizz to Her Majesty’s Platinum Jubilee.
Source: Wine GB, The Drinks Business, Gov.uk
C&C sells Admiral Taverns stake to Proprium Capital Partners for £55m.
Having originally invested in Admiral in September 2017, the sale of shares to Proprium Capital Partners will be completed in three tranches during the 2023 financial year. As part of the divestment, C&C has negotiated a long-term supply agreement into the pubco’s estate, including its owned and agency brands.
In addition, C&C’s financial update for the 12 months ending 28.02.22 revealed good news, highlighting a net revenue increase of 87.8% to €1,438m (about £1,209m) with operating profit at €48m (£40m). CEO David Forde tipped his hat to the resilience of the industry, highlighting the strength of customer and consumer demand and the importance of the on-trade to our society.
He went on to acknowledge the current evolving and challenging inflationary cost environment. While consumers may currently have a positive sentiment, it is important to be mindful of the pressures being placed on consumers and the potential impact on future demand.
The sale of Admiral and a strong 2022 financial year afford the drinks business a degree of protection, however, C&C and most alcohol companies across the UK will be susceptible to further increases in their cost base, which would necessitate further price increases.
Source: The Morning Advertiser, PROOF Insight, C&C
Drinks Industry Trends, Investments, Mergers & Acquisitions
- Molson Coors invests £16m in Aspall Cyder modernisation project as well as £3m behind a new advertising campaign for TV, digital, social and out of home.
- Stonegate has launched its first new premium site in London. More premium food-led sites are set to open with menus that feature “pub classics with a twist”.
- Moth (‘mix of total happiness’) canned cocktails to be sold in Tesco and Sainbury’s following Waitrose listing last year.
- CBD-infused gin startup, Muhu Spirits has been sold to Next Frontier Brands.
- Dishoom set to open ninth site in Canary Wharf at the end of this year, with space to seat 350 diners.
- Vagabond wine bar is set to open in Heathrow’s Terminal 5 following £1.2m investment.
- Fast food set to grow; Burger King planning to open another 200 sites by 2026, McDonald’s is set to join the Deliveroo platform and Popeye’s plan to open another site in Essex.
Sources: Propel, The Morning Advertiser, Big Hospitality, The Drinks Business, Langton Capital