Marston’s ditches brewing and switches to ‘pure play hospitality’
Pub group Marston’s has officially ditched brewing and announced a new strategy, which will see it focus entirely on pubs.
In a vote of confidence for the UK’s hospitality sector, it will “embark on a new chapter” as a pure-play hospitality business, its chief executive Justin Platt said.
“We are outlining a differentiated strategy for growth that is anchored in the needs of our guests and focused on driving sustained value for our shareholders,” Platt added.
The shift has been underway for some time, with the hospitality business slowly moving away from brewing this year.
The London-listed group, which owns more than 1,370 pubs across the UK, said it had sold its 40 per cent stake in Carlsberg Marston’s Brewing Company (CMBC) back to the company for £206m back in July.
The two companies had merged into a joint venture valued at £780m in 2020 after Marston’s shed its brewing operations.
The sale of its 40 per cent stake in the company, which brews household name beers like Hobgoblin and Brooklyn Lager, signalled the end of the firm’s nearly 200 years of brewing heritage at a site in Wolverhampton.
The move follows similar changes at big pub chains like Shepherd Neame, which last month announced a pivot from off-trade – sales in places like supermarkets, where alcohol is sold for consumption elsewhere – to on-trade sales in pubs.
Marston’s said that it expected to deliver revenue growth “ahead of the market” in the near-to-medium term, as well as an earnings before interest, tax, depreciation and amortization (EBITDA) margin of 200-300 basis points.
The company has no material refinancing requirement for at least 10 years, it added.
Platt added: “With a relentless focus on delivering amazing pub experiences, Marston’s has a real opportunity to drive significant, incremental value in the coming years. We are very excited by the opportunities that lie ahead.”