Gin proves to be no mother’s ruin for Young’s and Co as sales soar
A huge rise in demand for gin and sparkling wine gave Young’s and Co a tonic as the pub operator tapped into trends for premium drinks.
Sales of sparkling wine rose by more than 25 per cent for the third year running, while the number of people downing spirits also increased. Gin, the drink du jour, has seen sales grow 76 per cent in the past two years, and whisky sales rose 10 per cent year-on-year.
Total revenue fizzed 8.3 per cent to £246m, with like-for-like sales up 5.6 per cent, while adjusted pre-tax profits increased 10.6 per cent to £35.4m. Pre-tax profits fell 7.8 per cent to £33.3m, although the firm said this was a reflection of a favourable property revaluation last year.
Chief executive Stephen Goodyear, who is stepping down later this year, said: “Spirits are performing very well, but the growth of gin in particular has been absolutely extraordinary. It was in the doldrums for years, but it’s now taken over from vodka. It’s got more flavour, and with people being more selective, it’s also more of a premium product.
“With all the doom and gloom about consumer sentiment, we’re very pleased with these results. We’re growing well because most of our estate sits within the M25, we’ve held and grown our margins, and because we keep buying new pubs.”