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| MS55011 |
| MSI PUBLIC HOUSES: UK: MARCH 2001 |
| Overview |
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| 1 | Executive Summary | 1 |
| 2 | INTRODUCTION | 3 |
| 2.1 | Definitions | 3 |
| 2.2 | Methodology | 4 |
| 2.3 | UK Economy | 4 |
| 2.3.1 | Overview | 4 |
| 2.3.2 | Interest Rates | 6 |
| 2.3.3 | Inflation | 7 |
| 2.3.4 | Exchange Rates | 7 |
| 2.3.5 | Taxation | 8 |
| 2.3.6 | Household Income And Consumer Expenditure | 9 |
| 2.3.7 | Manufacturing Output | 10 |
| 2.3.8 | Services | 11 |
| 2.3.9 | Investment | 11 |
| 2.3.10 | Forecasts | 12 |
| 2.4 | Exchange Rates | 13 |
| 2.5 | Abbreviations | 13 |
| 3 | MARKET OVERVIEW | 15 |
| 3.1 | Market Size and Trends, 1996-2000 | 15 |
| 3.2 | Market Segmentation | 19 |
| 3.2.1 | Type Of Ownership | 19 |
| 3.2.2 | Type Of Outlet | 21 |
| 3.2.3 | Source Of Turnover | 22 |
| 3.3 | Factors Affecting Demand | 23 |
| 3.4 | Forecast Segmentation, 2001-2005 | 28 |
| 3.4.1 | Forecast Market Overview | 28 |
| 3.4.2 | Forecast Market Segmentation | 30 |
| 3.4.2.1 | Type Of Outlet | 30 |
| 3.4.2.2 | Source Of Turnover | 32 |
| 4 | Opportunities for Suppliers | 34 |
| 5 | Critical Success Factors | 37 |
| 6 | INDUSTRY STRUCTURE | 40 |
| 6.1 | Overview | 40 |
| 6.2 | Industry Concentration | 41 |
| 6.3 | Company Profiles | 43 |
| 6.3.1 | Bass | 43 |
| 6.3.2 | Enterprise Inns | 44 |
| 6.3.3 | Greene King | 46 |
| 6.3.4 | Nomura International | 47 |
| 6.3.4.1 | Overview | 47 |
| 6.3.4.2 | Unique Pub Company | 48 |
| 6.3.5 | Pubmaster Group | 49 |
| 6.3.6 | Punch Group And The Wellington Pub Company | 50 |
| 6.3.6.1 | Overview | 50 |
| 6.3.6.2 | Punch Pub Company | 51 |
| 6.3.6.3 | Punch Retail | 52 |
| 6.3.6.4 | The Wellington Pub Company | 52 |
| 6.3.7 | Scottish & Newcastle | 53 |
| 6.3.8 | Whitbread | 55 |
| 6.3.9 | The Wolverhampton & Dudley Breweries | 56 |
| 7 | MAGAZINES | 58 |
| 8 | Trade AssociationS | 60 |
| List of Tables | |
| 1. Economic Indicators On The UK Economy, 1995-2002 | 6 |
| 2. The UK Public houses market, 1996-2000 | 15 |
| 3. UK Household Final Consumption Expenditure On Alcoholic Drinks, 1995-1999 | 16 |
| 4. UK Consumption Of Alcohol, 1995-1999 | 16 |
| 5. Number Of Trips Taken In The UK, 1995-1999 | 17 |
| 6. Proportional Importance Of Trips Taken By UK Nationals And Visitors, 1995-1999 | 17 |
| 7. Number Of Public Houses In The UK, 1996-2000 | 18 |
| 8. Brewery Owned Public Houses In The UK, By Type Of Public House, 1996-2000 | 19 |
| 9. Pub Company Ownership Of Public Houses In The UK, By Type Of Public House, 1996-2000 | 20 |
| 10. The UK Public Houses Industry, By Type Of Ownership, 2000 | 20 |
| 11. UK Public Houses, By Type Of Outlet, 1996-2000 | 21 |
| 12. Source Of Turnover Of Public Houses In The UK, By Income Sector, 1996-2000 | 23 |
| 13. Proportion Of Adults Consuming Over Selected Weekly Levels Of Alcohol, By Age And Gender, 1998 | 25 |
| 14. UK Beer Sales Analysed Between On And Off Channel Sales, 1995-1999 | 26 |
| 15. Revenue Lost Through Cross-Channel Smuggling, By Product Type, 1996-2000 | 27 |
| 16. Forecast UK Public Houses Market, 2001-2005 | 28 |
| 17. Actual And Projected Population, By Age Group, 1998-2011 | 29 |
| 18. Forecast Number Of Public Houses In The UK, 2001-2005 | 30 |
| 19. Forecast Number Of Public Houses, By Type Of Outlet, 2001-2005 | 31 |
| 20. Forecast Source Of Turnover Of Public Houses, By Income Sector, 2001-2005 | 33 |
| 21. Brewers Capital Expenditure On Public Houses In The UK, 1996-2000 | 36 |
| 22. The UK Public Houses Industry, By Type Of Owner, 2000 | 41 |
| 23. Market Shares Of The Leading Pub Operators In The UK, 2000 | 42 |
| 24. Financial Summary Of Bass, 1996-2000 | 44 |
| 25. Financial Summary Of Enterprise Inns, 1996-2000 | 45 |
| 26. Financial Summary Of Greene King, 1996-2000 | 47 |
| 27. Financial Summary Of Nomura International, 1998-2000 | 48 |
| 28. Financial Summary Of Pubmaster Group, 1995-1999 | 50 |
| 29. Financial Summary Of Punch Taverns Holdings, 1998 And 1999 | 51 |
| 30. Financial Summary Of The Wellington Pub Company, 1998 And 1999 | 53 |
| 31. Scottish & Newcastle Estate, By Type Of Outlet, 2000 | 54 |
| 32. Financial Summary Of Scottish & Newcastle, 1996-2000 | 54 |
| 33. Financial Summary Of Whitbread, 1996-2000 | 56 |
| 34. Financial Summary Of The Wolverhampton & Dudley Breweries, 1996-2000 | 57 |
The UK market for public houses increased by 18 percent between 1996 and 2000 to a total value of £23.7 billion (39.8 billion) in 2000. The rate of growth was relatively high between 1996 and 1998. However, growth rates slowed in 1999 and 2000 to only 2 percent in each year, due to reduced capital expenditure by pub owners together with increased competition from alternative leisure activities.
The number of public houses in the UK is believed to have declined during the review period, to just 60 143 in 2000. Industry consolidation and a high degree of acquisitional activity contributed to this decline.
Food-led public houses are becoming increasingly important, and accounted for 49 percent of the number of public houses in the UK in 2000. MSI believe this trend is set to continue in the future with the number of food-led pubs increasing. In contrast, the number of community and wet?led pubs decreased between 1996 and 2000. These types of outlets have suffered as a result of increased competition and customer awareness of issues such as health concerns and drink driving.
Numerous factors affect the demand for public houses. Some of the most significant include:
The value of the UK public houses market is forecast to continue to increase between 2001 and 2005. During the same period the number of public houses in the UK is expected to continue to decline by some 2 percent. However, the rate of decline is expected to slow during the forecast period.
There are considerable opportunities for suppliers to the public houses market in the UK. Capital expenditure by breweries on public houses is estimated to have increased by a total of 178 percent between 1996 and 2000. A significant amount of expenditure has been invested in the refurbishment and re-branding of public houses during the review period. Moreover, the leading public house operators have extensive ongoing capital expenditure programmes.
Factors critical to the success of owners of public houses include the correct targeting of customers, the provision of a high quality range of food and drink, well trained staff and regular capital expenditure.
The leading nine operators of public houses industry in the UK accounted for 47 percent of the market in terms of number of outlets owned during 2000. The operators consist of brewing companies, ex-brewing companies and independent companies set up for the purpose of managing public houses.
Text © 2001 MSI
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Last updated by Jacob van Eldik 20th May 2001