By Lucy Caulkett-
Wetherspoon, the renowned UK pub chain, has announced a significant increase in sales over the past three months, attributing the surge to rising demand for Guinness among younger patrons and a revival of interest in traditional sales.
Founder and chairman, Tim Martin, (pictured) expressed optimism about the company’s financial performance, anticipating annual profits to exceed market expectations, buoyed by robust sales figures
The pub chain, which operates 809 venues across the UK said like-for-like sales increased by 5.2% in the 13 weeks to 28 April 2024, compared to the same period last year.
Year-to-date (YTD) like-for-like sales increased by 8.3%.
In a statement to the City today 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,” he said.
During the 13-week period ending April 28, Wetherspoons reported a 5.2% rise in like-for-like sales compared to the previous year, with total sales climbing by 3.3%.
Although representing a slight moderation in growth, it marks a notable recovery from the challenges posed by the pandemic.
Mr. Martin highlighted the burgeoning popularity of Guinness and the resurgence of traditional ales, noting the momentum gained by brands such as Abbot Ale, Ruddles Bitter, and Doom Bar.
He emphasized the shift in consumer preferences, with Guinness now embraced by younger generations alongside strong sales of Au Vodka and XIX vodka.
In addition to alcoholic beverages, Wetherspoon also noted a positive trend in wine sales, signaling a comeback for the beverage category. Moreover, the company reported increasing demand for Lavazza coffee refills, reflecting evolving consumer habits.
Despite the positive sales trajectory, Wetherspoon acknowledged the impact of the timing of the bank holiday weekend on its quarterly results. Nonetheless, the company remains optimistic about its performance, particularly as it continues to adapt to changing market dynamics.
Looking ahead, Wetherspoon revealed plans to optimize its pub portfolio, having opened two new pubs while divesting 18 others in the current financial year.
The company generated a net cashflow of £6.8 million from these transactions, with additional pubs slated for sale or under negotiation.
With a commitment to meeting evolving consumer preferences and capitalizing on emerging trends, Wetherspoon remains a stalwart in the UK hospitality sector, poised for continued growth and success in the months ahead.
Image: (Dominic Lipinski/PA)