Greene King reports decline at pubs
Greene King has reported a drop of 1.6% in managed pub like-for-like sales in the 16 weeks to 24 August.
Its tenanted division, Pub Partners, saw a 1.7% drop in profits.
On the managed side, Greene King said larger, food-led sites continue to perform strongly, whilst smaller, wet-led community sites are being more adversely affected by market conditions.
In the value for money segment of the market, new Hungry Horse is in good growth, whilst at a more premium position both Loch Fyne and the Inns division are performing well.
On the tenanted side Greene King said the main indicators of licensee health are broadly unchanged since it reported in July.
It added: "The environment continues to be challenging but Pub Partners' predominantly tenanted model creates strong relationships with its licensees.
"As a result, an increasing level of support is being provided to underpin licensee viability."
Greene King said market conditions remain challenging as consumer confidence continues to weaken and consumer expenditure continues to contract.
Brewing Company own-brewed volumes are down 3%, but given near double-digit declines in the on-trade beer market.
In Scotland, Belhaven continues to perform ahead of expectations.
LFL sales in the managed pub estate are up 4.6%, whilst Belhaven Best has now become the fifth best-selling on-trade alcohol brand in Scotland, according to new research from AC Nielsen.
