Marston’s: Thriving in a shrinking market

A series of legislative and cultural changes have impacted on the British pub industry, shrinking the market. This case study will examine these changes, highlighting how Marston’s has responded, as well as comparing that with the approach taken by their rivals. This will help explain one approach to growing a business within a struggling market.

Scope

Examines issues facing the British pub trade

Provides an example of a business growing in a shrinking market

Offers an overview of recent legislative changes in the sector

Reasons to buy

How have government policy and cultural shifts impacted on the pub trade?

How have Marston’s adapted to changes in the British pub sector?

How does Marston’s approach compare to that of its rivals?

What future changes might impact on the market?

Companies mentioned

None

Table of Contents

OVERVIEW

Catalyst

Summary

THE MARSTON’S STORY

A brief history

A change in focus: the importance of food to the modern pub

ISSUES FACING THE PUB TRADE

Changing drinking culture impacts on pub revenues

Rising prices and competition from supermarkets

Still reeling from smoking ban

Alcohol, diets and binging

Government legislation: the beer-tie, taxation and wages

Tax worries

End of the beer-tie diminishes brewers’ control

Planned increase in minimum wage

MARTSTON'S RESPONSE

Focusing on a different demographic (the F-plan)

Changing the focus of the estate

Health conscious menus

Value for money meals

Diversifying in response to shifting market

Fastcask

Bottled ale sales provide excellent growth

Maintaining a stable of proven brands

Yo-yoing profits, but clear results for investors

J.D. Wetherspoon: what you see is what you get

Greene King: diversity and profitability

Punch Taverns and Enterprise Inns: the mighty are falling

Accused of unfavorable terms for landlords

Marston’s: Shifting the ground beneath publican’s feet

CONCLUSIONS

Diversity and agility the key for Marston’s

APPENDIX

Definitions

Sources

Further Reading

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