Langton Capital – 2018-03-27 – Brewdog, Draft House, Laine, wine tariffs & other:
Brewdog, Draft House, Laine, wine tariffs & other:
A DAY IN THE LIFE:
First of two short weeks this week. The email will be going out in somewhat shortened form as Langton will be away from the office until next Wednesday. On to the news:
PUB, RESTAURANT & DRINK PRODUCERS:
• DP Poland & AG Barr are expected to report full year numbers later this morning.
• UK Finance has reported that debt on UK credit cards is growing at the fastest rate since before the financial crisis. It says that the growth in outstanding debt is 8.3% (in February), the highest for 12yrs.
• PizzaExpress has launched a pay-at-table app after partnering with Flyt. Timothy Love, senior marketing manager at PizzaExpress, stated: ‘We are always looking at ways we can improve our customers’ experiences and our new app will do just that. The ‘pay at table’ function by Flyt is perfect for those who would rather spend time eating our delicious pizza than sorting out the bill’.
• BrewDog has announced that it has acquired the independent 14-strong pub and bar operator Draft House for an undisclosed sum. Outgoing founder, Charlie McVeigh, commented: ‘Nine years have passed since the first Draft House launched, and it has been a truly remarkable journey of discovery. We’ve built an awesome business, and more importantly, a team right at the heart of the UK’s beer revolution. I am immensely proud of what we’ve achieved together and delighted to hand the business over to BrewDog for its next stage of growth. Draft House couldn’t be in better hands’.
• Further the above, Patron Capital remains the favourite to secure the purchase of Laine Pub Co, the MCA has reported. If Patron are successful in the bid they would back the existing management team lead by chief executive Gavin George.
• The Wine Institute of California has said that Chinese retaliatory tariffs of 15% on US wine could have a ‘significant negative impact on the future growth of wine exports to China’. The Institute said this could lead to a loss in market share ‘for years to come’.
• The Wine and Spirit Trade Association (WSTA) has celebrated a ‘decisive step’ taken by the UK government towards clarifying the future of wine and spirit producers post Brexit, having agreed a transition period with the EU until the end of 2020.
• Beam Suntory has partnered with premium spirits brand On The Rocks, making Beam the exclusive partner for On The Rocks co-branded drinks.
• US-based Kona Grill Inc. has negotiated rent abatements for five of its restaurants and amended its credit agreement as the casual diner attempts to turn around struggling sites. The Scottsdale, Ariz.-based grill-and-sushi chain reduced its loss to $12.4m, or $1.23 per share, for the fourth quarter ended Dec. 31, from $16.6m, or $1.58 per share, the previous year. Revenue fell 2.5%, to $42.5m, from $43.6m the previous year.
• Oakman Inns has opened The Cherry Tree in Olney, which was recently named as one of the top ten places to live in the South-East by The Sunday Times. Oakman Inns’ CEO, Peter Borg-Neal, said of the group’s 21st site: ‘Olney was one of the towns listed in our original business plan and I am delighted that we have made it here at long last. Having purchased the freehold for £1.5m and invested £2m in developing The Cherry Tree, this is a substantial investment and we are optimistic that the people of Olney will be delighted as well.’
HOLIDAYS & LEISURE TRAVEL:
• New research shows that visitors to Moscow for the World Cup this summer are likely to find hotel prices in the capital 9.6% lower than a year ago. The weak Russian rouble, low living costs and competitively-priced accommodation account for the improved value of taking a break in Moscow, according to the tenth annual Post Office Travel Money City Costs Barometer.
• Turkey continues to recover for Tui and is on course to return to the level of demand it reached in 2015, according to the travel operator’s commercial director.
• The first long haul holiday flights to Florida from Yorkshire are being brought in by Tui UK for summer 2019, with a Boeing 787 service from Doncaster Sheffield airport to Sanford.
• Tui is set to increase its Tunisia offering for summer 2019 following a steady restart for the destination since the attacks in 2015.
• Pragma Consulting claims the toy sector is still a breeding ground for innovation despite the recent high-profile collapse of Toys R Us. According to Euromonitor, the global market for developmental toys will reach £28bn by 2019. Pragma says parents are using traditional toys to cut down on children’s screen time. Pragma also says innovation in the toy market is starting to include augmented and/or virtual reality, such as a K’NEX roller coaster that lets kids ‘ride’ them virtually.
• Hollywood Bowl has completed its £900k rebrand of MFA Bowl in Yeovil, featuring 18 lanes and contemporary American decor. Steve Burns, CEO, said ‘We have clear goals for the year ahead and can’t wait to bring our new generation entertainment centres to even more people across the UK. Not only are our centres giving customers a destination to celebrate, they’re also driving huge footfall into leisure parks and shopping centres, benefiting our neighbours too.’
• Sky Betting & Gaming reports H1 revenue up 47% to £339m with Sky Bet revenue up 58% to £210m and Sky Gaming revenue up 31% to £117m for the 26 weeks ended 28 December 2017. Total customers increased 19% to 2m and EBITDA rose 92% to £118m. CEO Richard Flint said ‘During the period, we continued to enhance our range of markets, products and offers, with more betting options than ever and over 20 exclusive new games launched on our gaming brands. Our investments in data science are delivering greater personalisation to our customers’.
FINANCE & MARKETS:
• China has told the US that it will defend its interest in trade. It will retaliate with regard to tariffs but says re the US that it hopes that ‘both sides will remain rational and work together’.
• NAEA Propertymark has said that the number of house-hunters registered with estate agents in February is down 28% on the number registered in the same month a year ago.
• Brexit etc.:
o Tony Blair has said that the UK government’s negotiating position re Brexit is ‘built on sand’
o Labour has demanded that parliament have the final say on a Brexit deal. Labour says parliament should have the right to send the government back to the negotiating table.
PRIOR DAY LATER TWEETS:
• Later tweets: Stable door, horse, bolted etc. String of cautionary stories on casual diners. KPMG, UHY Hacker Young, McDonald’s, FT, Telegraph. See e/m
• Discounts running into Easter week & possibly April. Pizza Express 25% off food, Prezzo 40% off mains, ASK 30% off mains
• Car sales in Britain set for further slowdown this year says Moody’s. UK to be worst performing market in Europe
• Bloomberg: ‘Plot to stop Brexit is gaining strength & EU is helping.’ Secret meetings, sackings, Tony Blair etc. etc. #monumentalwasteoftime
• Blair says public was lied to, has right to change its mind. Iraq, say his opponents. Iraq. None sequitur’s ville Arizona
• How to upset everyone at once. Jacob Rees Mogg accuses Tories of giving away ‘almost everything’. Spending limits, Cambridge Analytica etc.
START THE DAY WITH A SONG:
Yesterday’s song was Roots Manuva with Witness (1 Hope). But today who sang:
In the time of chimpanzees I was a monkey
Butane in my veins so I’m out to cut the junkie
RETAIL NEWS WITH NICK BUBB:
• “The Daily Retailer” is going to be on holiday now until after Easter. Nick will be back, bright and early, on Tuesday April 3rd.