Brewer Holts expecting another tough year
BREWER and pub company Joseph Holt Group is hoping a focus on food and good value will help it weather another tough year.
The family-owned Manchester brewer, which owns 127 pubs, the vast majority in Greater Manchester, says trading – already depressed by the recession and competition from the supermarkets – took a further hit in January from the bad weather.
Increases in beer duty have further impacted the sector, which for the last year has seen pubs closing at a rate of around 50 a week nationwide.
Richard Kershaw, chief executive of Holts said England’s under-performance in the World Cup meant the the much-needed boost to the pub trade also failed to materialise.
“We are continuing to see tough trading – our profits last year before property disposals were down – and it remains so. We’ve had the bad weather in January, a 5.1% duty increase in the March budget, and no one could describe the four World Cup England games as a bonanza.”
Faced with so many challenges Holts has, Mr Kershaw says had to become “keener and sharper.” Encouraging progress has been made on the free trade arm of the business which sells bottled beers to the multiple retailers.
“Last year we took on a second account manager for the free trade, and it has made a big difference in bringing in extra business – it’s a good opportunity for us and we already have a foothold in the market with a national presence in Sainsbury’s and Morrisons.
“We continue to work really hard to present good quality beer and food at inexpensive prices,” he added.
In 2009 Holts’ operating profits before a £800,000 exceptional gain fell to £3.1m from £3.9m on sales flat at £44.8m.
The company, which employs 1,361 people, sold off several pubs during the year, allowing it to reduce debts by £4.9m to £9.46m.
Mr Kershaw said he was in favour of legislation mooted by the new government to outlaw below cost-price sales by retailers.
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