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Mixed smoke signals
England and Wales will ban smoking next summer and, depending on who you talk to, the consequences are either going to be dire, negligible or wonderful for the booze industry. Shares in 2,000-strong pub group Mitchells & Butlers shed just under 0.5 per cent to 647p when it issued its full year results showing profits up ten per cent to £208 million on sales ahead 5.5 per cent to £1.7 billion. The figures were largely anticipated, which perhaps explains the market’s response. However, what was not expected was the news that sales at the 200-odd pubs where the group has already banned smoking were down a mere one per cent. In Scotland, where a smoking ban has been in place for some time, sales at M&B’s 80 pubs were up one per cent. A more dramatic trend was on show at JD Wetherspoon recently. It confirmed that sales at its English and Welsh pubs where smoking is banned had actually increased two per cent, while its entire smoke-free Scottish estate had witnessed a 5.2 hike in sales.
At Scottish & Newcastle, the UK’s largest brewer, the view is distinctly different with its board unequivocally warning that the smoking ban will hit earnings.
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