Wetherspoon’s profits were boosted by Guinness’s surge among younger gamblers
- The pub chain reported that like-for-like sales are up 8.3% so far this year
- Trading was hit by a Bank Holiday weekend that took place a week later than last year
JD Wetherspoon expects annual profits to be towards the ‘high end’ of market forecasts, amid rising demand for Guinness and vodka among younger customers.
The pub chain’s comparable sales have risen 8.3 per cent so far this year and 5.2 per cent in the thirteen weeks to April 28.
Although the quarterly results represented a slowdown in sales, the company noted that trading was affected by a Bank Holiday weekend that occurred a week later than last year.
Youth earthquake: Among younger drinkers, Sir Tim Martin said there was growing demand for the iconic stout beer Guinness, which Martin said was ‘previously consumed by boys my age’
Wetherspoon chairman and founder Sir Tim Martin noted ‘increasing momentum’ for traditional ales, particularly Abbot Ale, Ruddles Bitter and Doom Bar.
Among younger drinkers, he said there was growing demand for the iconic stiff beer Guinness, which Martin said was “previously consumed by boys my age”.
They also buy large quantities of Au Vodka, a Welsh gold bottle brand backed by DJ Charlie Sloth, and XIX Premium Vodka, founded by YouTube group Sidemen.
Martin went on to say that sales of Lavazza coffee are increasing, helped by free refills believed to be “responsible for spontaneous demonstrations of breakdancing among retired customers.”
The outspoken boss, knighted in the latest New Year’s Honors list, also noted that New Zealand’s Villa Maria Sauvignon Blanc wine was popular with “representatives of the chattering classes”.
“Sales in the period continue the steady recovery from the pandemic,” added Martin, a prominent critic of the British government’s lockdown policies.
Founded in 1979, Wetherspoon is one of Britain’s largest pub operators, with 809 branches across the British Isles.
The company told investors it has recently opened two pubs and sold or transferred a further 18 outlets to landlords.
Victoria Scholar, head of investments at Interactive Investor, said: ‘Wetherspoons has proven that customers still enjoy visiting the pubs and remain willing to spend money, despite cost of living pressures.
‘This is due to the low prices and long opening hours, which distinguish the café chains from the competition.
‘Price-sensitive customers may limit their spending at more expensive restaurants and bars, switching instead to cheaper drinks venues, which plays well into the hands of Wetherspoons.’
JD Wetherspoon shares were 2.9 per cent higher at 748.5p on Wednesday morning, putting them among the top five gainers on the FTSE 250 Index, although still below pre-pandemic levels.