Langton Capital – 2022-10-31 – Drink sales, markets, taxes, late night market, Boxpark, video games etc.:
Drink sales, markets, taxes, late night market, Boxpark, video games etc.:A DAY IN THE LIFE: So, we enjoyed an extra hour in bed over the weekend and it’s lighter in the mornings but, as it’s still dark when we have to get up and trudge into the office, it’s hard not to think that the clock-changers have left it a bit too late and that all they’ve done is ensure that it’s now dark both when we arrive at work and when we leave. Which is what it is. But at least at our latitudes, twilight can stretch things out a bit whilst at lower latitudes, not that we’ve much experience of it, twilight can last about as long as it takes you to get up, cross the room, and turn on the light. In fact, 55 degrees north (or south, for that matter), which is about the line between Gretna Green and Newcastle, is the lowest latitude at which nautical twilight can last all night. Indeed, with that in mind, I remember doing the Lyke Wake Walk from school (a crazy, 40-odd mile Yorkshire Moors walk that has to be completed in one day) and, setting off from Osmotherley at around 2am, it was definitely both still, and just, getting light. Anyway, the summer solstice is a way off yet and, as cheerful souls such as ex-Chancellor Philip Hammond and now PM Rishi Sunak would have us believe, it’ll get darker yet before we see the light. On to the news: LANGTON EMAIL: The Free Email is now written in short form. Extended versions of many stories are in the Premium Email. Reply to this email if you would like to upgrade. Prices for the Premium at time of writing are £345 for one subscription, £595 for multiple, both plus VAT. Or sign up for easy in, easy out monthly option HERE https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=87YUG2Z5W7PSN PUBS & RESTAURANTS: CGA has reported that UK on-trade drink sales were in year-on-year growth for fifth week in a row in the week to 22 October. It reports that sales were up 6% in the week… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Lumina Intelligence has suggested that the UK restaurant market will generate £18.1bn in 2022, returning to 94% of its 2019 value. The increase, of £5.4bn year-on-year, will be driven mainly by inflation and unrestricted trading… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. KAM reports that the cocktail category is still growing. It says Gen Z respondents to a recent survey said they wo9uld still be prepared to pay more for cocktails under certain circumstances… Consumer discretionary income: With the government’s latest fiscal statement put off until 17 November, the next major economic news will come from the Bank of England this Thursday. Re taxation, former chancellor Lord Hammond told the BBC yesterday that everybody, not just higher earners, should prepare to pay more tax over the coming years. Hammond says he believes the government will raise benefits in line with inflation but current cabinet minister Michael Gove declined to make any firm commitment. … • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. The economy: The CBI has reported that UK private sector output fell for the third successive month in October. It says ‘the fall in economic activity over the last quarter was largely driven by services (-26% from -25% in September), with business volumes in both business & professional services (-19% from -14%) and consumer services (-49% from -57%) shrinking significantly…’ • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Late night market: CEO of the Night Time Industries Association, Michael Kill, has told GB News that the industry will “see a considerable collapse” if it does not get further support from the Government… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Other news: UKH has published energy advice and guidance for members and it has gone on to make this publicly available. The guidance, along with support videos, is available on UKH’s website… Labour market: Former chief executive of Institute of Hospitality Peter Ducker said that labour shortages are being experienced in a number of countries and they cannot all be blamed on Brexit. He says ‘I’ve seen the proof’ and mentions a recent trip to Amsterdam. US market. LfL sales. Black Box Intelligence in the U has reported that US restaurant industry growth remained steady at 5.2% in September (vs 5.3% in August), still several percentage points shy of the rate of inflation… US market: Restaurant hours. Datassential in the US has reported that restaurants in the US are still cutting opening hours in response to labour shortages. It says restaurants are open for around 6.4 fewer hours a week than they were three years ago. COMPANY NEWS: Big Hospitality reports that Boxpark is now actively looking for regional food and drink traders to open sites at its Bristol Boxhall, which is due to open next summer. Boxpark says ‘we have invested heavily in our kitchens and technology to give food operators a fantastic opportunity to grow their business and ensure they can deliver a seamless guest experience.’ Moody’s reports that Constellation Brands’ agreement with Canopy Growth ‘that will allow it to convert its Canopy common shares into exchangeable shares, relinquishing its effective control’ is ‘credit positive because makes clear that Constellation will not spend more cash to exercise warrants and removes the Canopy-related equity in earnings volatility from Constellation’s financial statements, while preserving upside in the event that the US cannabis market becomes more attractive through federal legalization.’ Alcoholic tea brand Noveltea, which secured funding through Dragon’s Den in Germany, has reportedly appointed liquidators. Deliveroo is to put £2.5m into subsidising the cost of eco-friendly packaging for its smaller restaurant partners reports City AM. HOLIDAYS & LEISURE TRAVEL: Travolution has reported on ONS figures that show the travel sector saw sustained revenue recovery in H1 this year after it had fallen to around a quarter of its pre-pandemic levels in 2020 and 2021… In a similar vein, European airport trade body ACI Europe says that passenger numbers across European airports rose by 61% over the equivalent 2021 peak period. International passenger traffic in Q3 this year was only 12% down compared to 2019 pre-pandemic levels… IAG, owner of British Airways and Iberia, reported Q3 numbers on Friday showing that it had made an operating profit in the quarter of 1.21 billion euros. IAG says ‘while demand remains strong, we are conscious of the uncertainties in the economic outlook and the ongoing pressures on households.’ The Times has reported that IAG could move to consolidate the European airline industry further ‘with speculation growing that it could move to snap up troubled rivals such as easyJet and TAP, Portugal’s flag carrier, which the Lisbon government is set to sell-off.’ Heathrow has been accused of ‘hitting a new low’ in its plans to introduce higher charges. IATA DG Willie Walsh says that the move to raise prices could threaten the viability of some airlines. Butlins has announced that it is to open a new food and drink destination at its Bognor Regis resort. Skyline Eats will open in 2023 and will offer a shared eating space providing choice and quality. Operators will included Costa Coffee, Burger King and Scoop in addition to Subway and Pan-Asian noodle bar, Chopstix. UK VIDEO GAMES MARKET: The UK video game industry is a growing industry that is already larger than the UK music and cinema industries combined. UKIE, the trade association for the UK’s games and interactive entertainment industry, states that the UK games market grew by 1.9% to a valuation of £7.16bn in 2021… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. OTHER LEISURE: Flutter on Friday reported that, following substantial votes against at its April 2022, the company has ‘continued to engage with our larger investors to fully understand their perspective in relation to Executive Director remuneration.’ Senior figures are reported to have started to leave Twitter after the company’s takeover by Elon Musk. Sky reports that Allwyn Entertainment is in talks with Camelot’s Canadian owner about potentially buying the UK operations for a suggested £100m. FINANCE & MARKETS: The ONS reports there were 5,595 registered company insolvencies in Q3 this year, up from 3,987 during the same period last year. The number is up by 28% on the same quarter in 2019. Sterling up at $1.1596 and €1.1647. Oil price lower at $95.01. UK 10yr gilt yield up 8bps after several days of declines at 3.50%. World markets broadly better on Friday with London set to open some 15pts higher as at 6.30am. RETAIL WITH NICK BUBB: • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. |
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