E-Malt.com News article: 3371

UK: Wolverhampton & Dudley, Britain's biggest regional brewer, says trading through the summer was strong and its full-year results will be in line with expectations. The 63 pubs it acquired through Wizard Inns in June have been integrated as planned and are also trading in line, the brewer of Marston's Pedigree beer said in a trading statement on Friday ahead of its year-end on October 2, Reuters revealed on October 1, 2004.

"We see considerable development potential in this estate," the 114-year-old central England brewer said of Wizard Inns. W&DB's WOLV.L total estate numbers around 1,600 pubs. Its Marston's and Bank's bitter brands will receive a boost through new marketing agreements with pub groups JD Wetherspoon JDW.L and Mitchells & Butlers MAB.L , it added.

Weaker demand for beer in British bars is prompting U.K. pub operators to extend their food menus, cut drinks prices, revamp outlets and pursue acquisitions. Wolverhampton & Dudley agreed in June to buy Wizard Inns Ltd., an operator of 63 pubs in southern England, for 89.9 million pounds ($162 million), according to Bloomberg.

Union Pub bought 20 pubs in the fiscal year and the Pathfinder chain built or acquired five neighborhood pubs, with plans to open 20 more in the next financial year. A revaluation of Wolverhampton & Dudley's pubs will lead to an increase of 25 percent of the outlets' value to 160 million pounds from the last valuation in 1999.

Scottish & Newcastle Plc, Britain's largest brewer, said in August it sold 0.5 percent less beer in U.K. pubs in the six months through June and 13 percent more in supermarkets and liquor stores. Eldridge Pope & Co. agreed last month to sell itself to SDA Ltd., a rival pub chain, while J.D. Wetherspoon Plc, the owner of 643 pubs in British town centers, said price cuts will hurt annual profit.

W&DB'S shares closed at 888 pence on Thursday, valuing the company at 718 million pounds.Last December, W&DB reported pretax profit of 73.1 million pounds.


01 October, 2004