Steven Kersley

📉 Inflation’s Bite on the Bakery Sector 🍞 Despite impressive sales growth in 2023, CSM Ingredients UK has found itself in the red, highlighting the growing strain inflation is placing on the bakery industry. As prices of raw materials and production soar, even established companies like CSM are struggling to maintain profitability. This story sheds light on a broader issue – the fine line between growth and sustainability in a volatile market. CSM’s operating loss, despite a near 10% increase in sales, reflects the sector’s biggest challenge: absorbing rising costs while keeping prices competitive. In an industry where margins are already slim, this balancing act is becoming harder to maintain. It’s a stark reminder of the financial fragility that many businesses face when inflation strikes hard. 💡 What does this mean for bakery businesses across the UK? Here’s my take: Innovation and operational efficiency are no longer optional – they’re vital for survival. Businesses need to explore automation, streamline production, and optimize supply chains to safeguard against economic pressures. Those who don't adapt may struggle to stay afloat in this increasingly tough market. And it’s not just about cost-cutting; investing in sustainable ingredients and processes can attract consumers looking for ethical options, potentially offsetting inflation’s impact. 📊 Food for thought: As the industry evolves, how will bakery businesses balance the need for innovation, sustainability, and affordability? #FoodIndustry #Sustainability #InflationImpact #BusinessInnovation📉 Inflation’s Bite on the Bakery Sector 🍞

Marston’s Plc To Dispose Of 40% Stake In Brewing To Become A Focused Pub Business Marston’s PLC has announced the sale of its remaining non-core brewing assets to create a business entirely focused on pubs, with a binding agreement to sell the whole of its 40% interest in Carlsberg Marston’s Limited (“CMBC”) to a subsidiary of Carlsberg A/S (“Carlsberg”) (the “Transaction”) for £206 million in cash. The firm, which has brewed beer in Wolverhampton since 1875, announced on Monday that it sold its stake in Carlsberg Marston’s Limited (CMBC), a joint venture valued at £780m, to Carlsberg. Chief executive officer of Marston's Justin Platt said the sale to the Danish brewing company "significantly reduced" Marston's debt. The group will now focus on running about 1,370 pubs, which it operates across England, Scotland, and Wales. Marston's and Carlsberg announced a merger in May 2020 to form CMBC, in a move which involved Marston's six breweries and distribution depots, but not its pubs. However, Marston’s said it would continue its "strong partnership" with CMBC through the long-term brand distribution agreement which remains in place. The Campaign for Real Ale has said it is fearful about the future of UK beers, brands and breweries following the announcement that Marston’s is selling all its remaining ‘non-core’ brewing assets to a subsidiary of Carlsberg, to focus on running pubs. The sale comes after Carlsberg Marston’s Brewing Company introduced its ‘Fresh Ale’ concept earlier this year. ‘Fresh Ales’ are kegged versions of cask beers, served through traditional handpumps at the bar reserved for cask conditioned beer. CAMRA slammed the move as misleading to consumers and damaging to traditional cask ale, while also reporting the brewing giant to Trading Standards. Commenting on Marston’s selling the remainder of its brewing operations, CAMRA Chairman Nik Antona said: “This is a worrying development for Britain’s brewing heritage with Marston’s remaining brewing assets being transferred to a global brewing business which has already presided over the closure of historic breweries like Jennings in Cumbria and Charles Wells Eagle in Bedford, stopped selling cask ale in Scotland and has introduced an extremely damaging ‘fresh ale’ concept which is misleading to pubgoers and threatens the future of British cask conditioned ale. “CAMRA fears that this announcement could lead to a further erosion of the UK’s rich brewing history for the benefit of conglomerate global brewers – and particularly the commitment to brewing cask. The consolidation of the brewing industry into just a few large, international players erodes our brewing heritage, consumer choice, the diversity of beer in pubs across the country and the access to market for small, independent producers. “Having Marston’s pubs continuing to be subject to an anti-competitive supply tie by Carlsberg Marston’s Brewing Company is also a cause for concern, limiting choice for customers …

Drinks Sales Warm Up In May After Tough April On Premise drinks sales have fallen year-on-year for the fifth week in a row, CGA by NIQ’s Daily Drinks Tracker shows—but there are welcome signs that May will be a brighter month for operators and suppliers. On Premise drinks sales have fallen year-on-year for the fifth week in a row, CGA by NIQ’s Daily Drinks Tracker shows—but there are welcome signs that May will be a brighter month for operators and suppliers. Average sales in managed venues for the week to last Saturday (4 May) were 4% behind the equivalent period in 2023. It extends a run of trading that has seen small year-on-year drops of between 0.2% and 6% since early April. For the second successive week, drinks sales suffered from patchy weather in many parts of Britain. They also faced tough comparisons with a sunny first week of May in 2023, when sales were inflated by the inclusion of a Bank Holiday weekend. While daily sales were well behind 2023 for the first part of the week, the performance was much better in the second half. Year-on-year sales were up by 6% and 13% on Wednesday and Thursday (1 and 2 May), and they soared by 22% on Saturday—partly because of better weather and partly because it was the start of the 2024 May Bank Holiday weekend. This was despite comparisons with a day that brought a big boost to sales during the King’s Coronation. Long Alcoholic Drinks (LAD) categories fared best last week, with beer sales up 1% and cider down only 1%. Soft drinks were down 7% and wine up 1%, but spirits endured another difficult week, as sales dropped 19% year-on-year. “Bank Holidays always make year-on-year comparisons tricky, sales trends have exhibited greater volatility owing to irregular rainfall throughout April”, says Jonathan Jones, CGA by NIQ’s managing director, UK and Ireland. “Nevertheless, suppliers and operators should be encouraged by strong trading in the first few days of May, which suggests some consumers are starting to spend more. With warmer weather arriving at last and forecasts of more to come, we can expect some favourable conditions—especially for venues with gardens and terraces.” Barclays Consumer Spend data also revealed that transactions at pub, bars and clubs reached a 2024-high on Saturday 4th May, as the sunny weather and bank holiday weekend encouraged Brits to make a trip to their local. Transactions were up 16.8 per cent in comparison to the previous Saturday, and 2.5x as many sales were processed vs the average day in 2024 so far1. The Barclays April Consumer Spend Index showed that pubs, bars and clubs enjoyed a 3.9 per cent boost in April, but more broadly, Brits cut back on spending on eating and drinking overall in the month, with restaurants seeing a -13.1 per cent decline2, hampered by the cold weather in the month. However consumers’ confidence in their ability to spend more on non-essential items improved, reaching 56 per cent3, which might suggest that falling inflation, eas…

Drinks sales hotspots: Ten CGA insights from Imbibe At last week’s Imbibe Live event, CGA by NIQ’s Chris Sterling shared an expert overview of On Premise drinks trends, with a focus on growth opportunities for suppliers and manufacturers. Here are ten of the market hotspots to watch. 1 Premiumisation This year has brought an extension of consumers’ trend for buying fewer but better drinks in the On Premise. Asked about their choices with a fixed amount of money, well over half (58%) of consumers said they would buy one or two premium drinks—far more than the 13% who would buy four or five lower-quality ones. 2 Longer serves While quality is vital, consumers also want to be certain they will get full value for their money. This is playing to the advantage of longer serves in LAD categories, which some perceive to be better value than spirits or wine. CGA’s OPM service (https://buff.ly/46dTSe4) reveals beer and cider have grown their share of drinks sales by a combined 1.6 percentage points in the last 12 months, while spirits have lost 1.3 percentage points. 3 Live sport and music Many types of occasions have recorded a drop in frequency over the last 2 years, including both relaxed and high tempo drinks. But the shares of visits taken by live sport and music have increased by 3 and 1 percentage points respectively. The Euros football tournament has been a reminder of how big sporting occasions can boost beer brands in particular. 4 Earlier dayparts One of the biggest post-COVID shifts in the On Premise has been the move towards earlier dayparts. Average weekly sales by value after 10pm have dropped by 7.3%, but they’ve risen sharply in the 12pm to 7pm period. This has important implications for consumers’ category choices. 5 Vodka and rum Spirits sales are under pressure, but some segments are faring better than others. Vodka and rum increased their share of the category by 0.7 and 0.3 percentage points in the last 12 months, and whiskey and cream liqueurs have made gains too. 6 Cocktails Vodka and rum sales have been shored up by cocktails, sales of which have marginally increased in the last 12 months, despite a 3.3% drop in distribution. Mixed and layered shots like Baby Guinness have been another growth segment. 7 World lager Positive LAD trends and premiumisation have powered the growth of world lager. Its share of the category grew by 2.3 percentage points in the last 12 months, mostly at the expense of standard lager. Draught world lager has sharply increased its penetration—from 45% of outlets in 2017 to 69% at the end of 2023. 8 Stout Stout has been another post-pandemic winner, thanks to effective marketing, a close association with live sport and a focus on quality. It has increased its share of the LAD category by 1.3 percentage points and diversified its appeal to younger and female consumers in particular. 9 Health A growing focus on health and moderation is fuelling interest in no …

Interesting industry update from SIBA, The Society of Independent Brewers and Associates. Whilst its good to see that independent brewers are reporting strong sales and demand; it is concerning that operating costs are a becoming an increasing challenge. If you are looking to lower input costs, please reach out to see how an IGC CO2 Pressure Vessel can help. A key benefit of an IGC CO2 Tank is the flexibility to purchase gas from any supplier in the UK based on your desired price point. #SIBA #IndependentBrewers #PressureVessel #Flexibility