Belhaven's smoke ban solution will cost £2m

by The PMA Team

Scottish brewer and retailer Belhaven is to invest £2m in patios, outside heaters and "spectacular roof gardens" in its 270-strong estate as it prepares for the smoking ban in Scotland next April.

Chief executive Stuart Ross said: "Our job is to give people reasons to come to the pub. We have a plan for every pub that aims to create as much comfort as we can for smokers."

Ross revealed that eight senior Belhaven executives spent a week in southern Ireland last December and found strong support for the smoking ban among almost 200 pub managers and licensees they had spoken to. "Asked if they would reverse the ban given the opportunity, they said they wouldn't," said Ross. "Almost to a man they felt their pubs were better places in terms of their environment."

Ross's comments came as Belhaven posted a 22.5% rise in pre-tax profit, to £17.43m, for the 53 weeks to 3 April. The main driver of profit growth was an increase in the size of the estate from 226 to 270 pubs. Ross said he thought an estate of 500 pubs was a sensible target for the end of the decade.

"We should have 300 pubs by the financial year-end and would like to add 40 a year," he said. Total drinks volumes were upby 13.3% with Belhaven Best, Scotland's most popular draught ale, increasing volume by 8.6%. The company had raised its prices in line with inflation in January ­ as per its policy of several years' standing.

"It was interesting to see Scottish Courage, after those years of inflationary price rises, falling in line with our views this year," said Ross.

Belhaven said the first two months of the new financial year had been in line with expectations, despite difficult market conditions and what was described as the "inconsistency of consumer spend".

City analyst Mark Brumby, of Oriel Securities, said: "In addition to the better known issues regarding the national minimum wage, utility costs and insurance, the review of rateable values will be a major annoyance this year and next. They are going to be about 30% higher in Scotland and, to add insult to injury, Sky TV prices off rateable values."