Pub group toasts successful year

Jan 5 2009 by Chris Knox, The Journal

ONE of the region’s pub groups expects to be toasting a fruitful 2009 and is looking to take advantage of the problems facing the drinks sector to help grow its estate.

Northumberland-based The Head Of Steam Ltd has seen sales at its five pubs in Newcastle, Huddersfield and Liverpool increase by 4% over the last four months compared to the same period last year.

Managing director Tony Brookes is now looking to add further outlets to his portfolio and believes the growing number of pub closures will provide the ideal opportunity.

Across the region 80 licensed premises have closed in the past two years, with areas of Sunderland, Derwentside and Durham city the worst hit by the soaring alcohol tax, greater regulation and the smoking ban.

The closure of North East pubs has accelerated to more than one every 10 days, with 161 million fewer pints sold between July and September last year, compared with the same period in 2007 – a fall of 1.8 million pints a day.

However, Mr Brookes believes that his group’s emphasis on live music and a wide selection of real ales will help bring the region’s regulars back to the beer pumps. It is this business model that he is looking to replicate throughout the North East.

“A lot of people may choose to look at the current pub market as a cause for doom and gloom, but I see it as a time of opportunity,” Mr Brookes said. “Don’t get me wrong, 2009 will be a terrible time for those pubs that were already experiencing problems before the credit crunch. However, for businesses like ours that are in good financial shape, the new year should be a time for expansion with a number of properties coming to the market.”

The group, which is currently considering locations in the North East, saw its turnover increase slightly last year beyond the £3m mark. The 29-year-old chain currently operates Newcastle pub Tilleys Bar as well as The Head of Steam and The Cluny, which have become two of the city’s most well respected underground music venues.

Mr Brookes is also keen to continue his Stuff the Supermarkets campaign which has involved selling plastic barrels of real ale at reduced prices in order to compete with the discounting power of the supermarkets.

He said: “The supermarkets have a lot to answer for when it comes to the closure of our pubs. It’s shocking that so many get away with selling at a loss while the Government attempts to get its sensible drinking message across.”