JD WEATHERSPOOON HAS said soaring demand for Guinness from younger punters and a recovering demand for ale helped the UK pub chain to higher sales over past three months.
The chain, which is known for its low-priced pints and pub grub, now expects annual profits to be “towards the top of market expectations” in the UK.
Wetherspoons, which runs operates nine pubs in the Republic of Ireland and three in the North, along with more than 800 pubs across the UK, said like-for-like sales increased by 5.2% over the 13 weeks to April 28 compared with a year earlier, with total sales up 3.3%.
The company’s chairman Tim Martin said the group has benefited from the rocketing popularity of Guinness and a revival for some traditional ale.
“Sales in the period continued the steady recovery from the pandemic,” he said.
“Traditional ales, which were very slow in the aftermath of the lockdowns, are increasing momentum, with Abbot Ale, Ruddles Bitter and Doom Bar showing good growth, as indeed are ales from the many small and micro brewers with which we trade.
“The gods of fashion have smiled upon Guinness, previously consumed by blokes my age, but now widely adopted by younger generations.”
The group also saw strong sales of Au Vodka and XIX vodka among its younger customers.
According to Ireland’s Central Statistics Office (CSO) Consumer Price Index, the average cost across Ireland of a pint of stout was €5.64 in February this year, up from €5.40 the same time last year, and €4.90 the year before that. In February 2020, before the Covid-19 crisis, an average pint of stout cost €4.67.
A pint of lager, meanwhile, cost €6 in February, up from €5.88 in 2022 and €5.33 the previous year. Pre-Covid, the average cost was €5.06.
The pub group told investors today that it has opened two pubs and sold or surrendered to the landlord 18 pubs in the year to date.
It received a net cashflow of £6.8 million (€7.9m) from the pubs and said a further 17 are on the market or currently under offer.
Among the pubs in its Ireland portfolio that are up for sale are The Linen Weaver in Cork city, An Geata Arundel in Waterford city and The Tullow Gate in Carlow.
With reporting by PA
To embed this post, copy the code below on your site
have your say