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Pub Visiting - UK - May 2014

Published By :

Mintel

Published Date : May 2014

Category :

Alcoholic Beverages

No. of Pages : 145 Pages

Times have changed for the pub industry and publicans should be carefully working out how to tailor their food menus, for example by using local ingredients and tiering prices, to their customers to stave off competition from other pubs and restaurants.
Table of Content

Introduction

Definition
Abbreviations

Executive Summary

The market
Figure 1: Forecast for UK pub industry revenues, 2008-18
Figure 2: Structure of the UK pub industry, by ownership/tenancy type, 1992-2012
Market factors
Declining alcohol consumption plays a part in fall in pub visits
The pressure of rising costs
Consumer confidence bounces back
Population changes will have an impact…
…as will external factors
Companies, brands and innovation
The consumer
One in five adults drink in pubs weekly
Figure 3: Frequency of visiting pubs/bars to drink and eat in, February 2014
Quality of food and service are most important factors for pub visits
Figure 4: Important factors during pub visits – Any mention of importance, February 2014
Some 46% of pub visitors think it is important for pubs to offer high-quality food
Figure 5: Attitudes towards pubs, February 2014
Recommendations key for pubs
Figure 6: Engagement with pubs outside visiting, February 2014
What we think

Issues and Insights

The rejuvenation and importance of ‘pub grub’
The facts
The implications
Live sports on TV are a ‘nice to have’ rather than a ‘must have’
The facts
The implications
Pubs also need to tap into the family market
The facts
The implications
Many pubs that have survived are well placed to now thrive
The facts
The implications

Trend Application

Trend: Locavore
Trend: Access All Areas
Mintel Futures: Old Gold

Internal Market Environment

Key points
Alcohol consumption and pub visits in decline
Figure 7: Trends in UK per capita consumption of 100% alcohol, 2000-12
Figure 8: Volume trends in the sales of beer, by channel, 2008-13
Figure 9: Index of price of beer and wine in the on- and off-trade, 2007-13
Good news from the government
Figure 10: UK excise duty rates for selected alcoholic drinks, 2003-14
Alcohol minimum pricing plans shelved in England and Wales
The pub industry continues to shrink
Figure 11: Net number of pub closures, December 2007-December 2013
The tenant/pubco relationship looks set to change
Business rates are also an issue
Figure 12: Trends in the average rateable value of pubs in England and Wales, 2005 and 2013
Times of change for late-night drinkers?
Best Bar None
National Pubwatch
Purple Flag
Business Improvement Districts
Local Alcohol Action Areas
Bills, bills, bills
Figure 13: Trends in utility prices paid by non-domestic consumers (including the climate change levy), 2008-13
The majority of pubs continue to show live sport

Broader Market Environment

Key points
Consumer confidence bounces back
Figure 14: Consumer Confidence Index, monthly, January 2007-March 2014
Health considerations play a part in drinking habits
Pubs and the smoking ban
Figure 15: Attitudes towards smoking in pubs/bars, June 2013
An ageing population needs consideration
Figure 16: Projected trends in the age structure of the UK population, 2013-18
C2DEs could hold the key to growth
Figure 17: Projected changes in the socio-economic structure of the UK adult population, 2013-18
The weather influences pub visits…
Figure 18: Hours of sunshine in the UK, by month, 2008-14
…as could the World Cup

Competitive Context

Key points
Pubs/bars prove to be resilient
Figure 19: Value of the UK leisure* industry, by segment, 2013
Value sales growth hides a mixed volume performance in alcoholic drinks
Figure 20: Value sales of selected alcoholic drink categories, 2008-13

Strengths and Weaknesses

Strengths
Weaknesses

Who’s Innovating?

Key points
Coverage
Driving value for customers…
…to driving quality
Drink-driving remains a thorny issue
Figure 21: Deaths from drink-driving in Britain, 2006-12
Pubs and the community
Entertaining the masses

Market Size and Segmentation

Key points
Overall market growth masks a mixed performance in 2013
Figure 22: UK pub industry market size and forecast, 2008-18
Marginal value growth for alcoholic drinks
Figure 23: UK pub industry turnover, by segment, 2009-13
The importance of a strong food offering
Soft drinks sales plateau
The leased/tenanted market is struggling
Forecast
Figure 24: Forecast for UK pub industry revenues, 2008-18

Market Share

Key points
Managed operators continue to thrive and grow
Figure 25: Structure of the UK pub industry, by ownership/tenancy type, 1992-2012
Figure 26: Turnover of leading pub operators in the UK, 2011/12 and 2012/13
Figure 27: Leading pub operators in the UK, by outlet numbers, 2012 vs 2013
Leased/tenanted venues continue to struggle
Potential for the freehold/independent segment to thrive

Companies and Products

Figure 28: Leading pub operators in the UK, by outlet numbers, 2011-13
Figure 29: Business mix of leading pub operators in the UK, 2013
Enterprise Inns
Company overview
Financial information
Figure 30: Key financial data for Enterprise Inns PLC, 2009-13
Figure 31: Enterprise Inns PLC turnover, by segment, 2012 and 2013
Corporate strategy and recent developments
Marketing support
Greene King plc
Company overview
Financial information
Figure 32: Key financial data for Greene King PLC, 2009-13
Figure 33: Greene King PLC revenue, by segment, 2012 and 2013
Corporate strategy and recent developments
Marketing support
JD Wetherspoon plc
Company overview
Financial information
Figure 34: Key financial data for JD Wetherspoon Plc, 2009-13
Corporate strategy and recent developments
Marketing support
Mitchells & Butlers plc
Company overview
Financial information
Figure 35: Key financial data for Mitchells & Butlers Plc, 2009-13
Corporate strategy and recent developments
Marketing support
Punch Taverns
Company overview
Financial information
Figure 36: Key financial data for Punch Taverns PLC, 2012 and 2013
Figure 37: Punch Taverns PLC revenue, by segment, 2012 and 2013
Corporate strategy and recent developments
Marketing support
Spirit Pub Company
Company overview
Financial information
Figure 38: Key financial data for Spirit Pub Company PLC, 2010-13
Figure 39: Spirit Pub Company PLC revenue, by segment, 2012 and 2013
Corporate strategy and recent developments
Marketing support

Brand Communication and Promotion

Key points
Advertising continues to fall
Figure 40: Total above-the-line adspend in the UK by brewers and pubcos, 2010-13
Adspend highly fragmented and geared towards press
Figure 41: Expenditure on advertising, by brewers and pubcos, by channel, 2010-13

The Consumer – Frequency of Visiting Pubs

Key points
One in five adults drink in pubs weekly
Figure 42: Frequency of visiting pubs/bars to drink and eat in, February 2014
Figure 43: Frequency of visiting pubs/bars to drink in, by gender, February 2014
Three clusters of pub drinkers
Little year-on-year change in pub usage
Figure 44: Frequency of visiting pubs/bars to eat and drink in, February 2013 vs February 2014

The Consumer – Important Factors During Pub Visits

Key points
Quality of food and service are most important factors during pub visits
Figure 45: Important factors during pub visits – Any mention of importance, February 2014
Figure 46: Most important factors (ranked 1) during pub visits, February 2014
Is the price right?
Cleanliness of toilets and appealing facilities seen as ‘nice to haves’
Furniture and facilities matter to a minority
Range and entertainment can support pubs’ appeal
Live entertainment sparks minority interest

The Consumer – Attitudes Towards Pubs

Key points
Summary of attitudes towards pubs
Figure 47: Attitudes towards pubs, February 2014
The importance of food to pubs
Figure 48: Attitudes towards the quality/appearance of pubs, February 2014
Pubs in the community
Figure 49: Attitudes towards the positioning of pubs and visiting trends, February 2014
Children in pubs divide opinion
Interest in trying new pubs
Cost plays a part in shaping pub visiting
Figure 50: Attitudes towards the cost of going to pubs, February 2014
Limited interest in new entertainment concepts
Figure 51: Attitudes towards themed discounts and subsidised taxi service, February 2014

The Consumer – Engagement with Pubs

Key points
Recommendations key for pubs/bars
Figure 52: Engagement with pubs outside visiting, February 2014
An up-to-date online presence is increasingly expected
Other forms of engagement only garner a niche response

Appendix – Broader Market Environment

Figure 53: Attitudes towards smoking in pubs/bars, by demographics, July 2013

Appendix – Who’s Innovating?

Figure 54: Agreement with the statement “Pubs should be available at motorway service stations”, by demographics, January 2014

Appendix – Market Size and Segment Performance

Figure 55: Best- and worst-case forecasts for the UK pub industry, by value, 2013-18

Appendix – The Consumer – Frequency of Visiting Pubs

Figure 56: Frequency of visiting pubs/bars to eat in, February 2014
Figure 57: Frequency of visiting pubs/bars to drink in, February 2014
Figure 58: Highest frequencies of visiting pubs/bars to drink in, by demographics, February 2014
Figure 59: Other frequencies of visiting pubs/bars to drink in, by demographics, February 2014
Figure 60: Frequency of visiting pubs/bars to drink in, by most popular attitudes towards pubs, February 2014
Figure 61: Frequency of visiting pubs/bars to drink in, by next most popular attitudes towards pubs, February 2014

Appendix – The Consumer – Important Factors During Pub Visits

Figure 62: Important factors during pub visits, February 2014
Figure 63: Most popular factors during pub visits, by demographics, February 2014
Figure 64: Next most popular factors during pub visits, by demographics, February 2014
Figure 65: Other factors during pub visits, by demographics, February 2014
Figure 66: Most important factors during pub visits, February 2014
Figure 67: Most popular factors during pub visits – Rank 1, by demographics, February 2014

Appendix – The Consumer – Attitudes Towards Pubs

Figure 68: Attitudes towards pubs, February 2014
Figure 69: Most popular attitudes towards pubs, by demographics, February 2014
Figure 70: Next most popular attitudes towards pubs, by demographics, February 2014
Figure 71: Other attitudes towards pubs, by demographics, February 2014

Appendix – The Consumer – Engagement with Pubs

Figure 72: Engagement with pubs outside visits, February 2014
Figure 73: Engagement with pubs outside visits, by demographics, February 2014
Figure 74: Engagement with pubs outside visits, by demographics, February 2014 (continued)
Figure 75: Engagement with pubs outside visits, by most popular frequencies of visiting pubs/bars to drink in, February 2014
Figure 76: Engagement with pubs outside visits, by next most popular frequencies of visiting pubs/bars to drink in, February 2014

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