Marston's plc

Last updated

Marston's plc
Company type Public
LSE:  MARS
IndustryBrewing
Founded1834;190 years ago (1834)
FounderJohn Marston
Headquarters Wolverhampton, England
Key people
William Rucker (chairman)
Justin Platt (CEO - effective from 10 January 2024)
ProductsPubs, hotels, restaurants
RevenueIncrease2.svg £872.3 million (2023) [1]
Increase2.svg £134.7 million (2023) [1]
Decrease2.svg £(9.3) million (2023) [1]
Number of employees
11,000 (2023) [2]
Website www.marstonspubs.co.uk

Marston's plc is a British pub and hotel operator. Founded by John Marston in 1834, [3] it is listed on the London Stock Exchange. Marston's disposed of its brewing operations in 2020, selling the assets to a newly formed joint venture with the Carlsberg Group to create the Carlsberg Marston's Brewing Company (CMBC), in which Marston's plc holds a 40% share.

Contents

History

1834–2019

In 1834, John Marston established J. Marston & Son at the Horninglow Brewery in Burton upon Trent. [3] By 1861, the brewery produced 3,000 barrels a year. [4] In 1890, Marston & Son Ltd was registered as a limited liability company. [4] In 1898 Marston's amalgamated with John Thompson & Son Ltd and moved to Albion Brewery on Shobnall Road, which the company still operates. [3] By this time the brewery had a capacity of 100,000 barrels a year. [4] It was at this time that the Burton Union System began to be used. [3] In 1905, the company merged with Sydney Evershed to form Marston, Thompson & Evershed. [3]

Banks & Co has been brewing at the Park Brewery in Wolverhampton since 1875. [5] In 1890 Banks became Wolverhampton & Dudley Breweries when the company amalgamated with George Thompson & Sons and Charles Colonel Smith's Brewery. [6] In 1943 Wolverhampton & Dudley Breweries took over Julia Hanson & Sons, with 200 pubs. [7] It was first listed on the London Stock Exchange in 1947. [6] It acquired Camerons Brewery in Hartlepool in 1992 [6] and sold it to Castle Eden in 2002, whilst retaining some of Cameron's tied pubs. [8]

In 1999, Wolverhampton & Dudley Breweries purchased Marston, Thompson & Evershed, and in the same year took over the Mansfield Brewery of Nottinghamshire and closed it down, transferring production of Mansfield beers to the Park Brewery. [9] In 2005, Marston's Brewery took over production under licence from Interbrew of Draught Bass, succeeding Coors. [10] Later in 2005, the Jennings Brewery of Cockermouth was purchased and in 2007 Hampshire-based Ringwood Brewery, which was established in 1978, and brews Best Bitter, Fortyniner, and Old Thumper, was acquired. [11] In 2007, the company changed its name from Wolverhampton & Dudley Breweries plc to Marston's plc. [12]

In late 2013, there was some controversy when it was announced that Marston's would sell some 200 pubs to new company New River Retail. The fear was that many would close and be turned into convenience stores. [13] In 2014, the company took over production of most Thwaites beers. On 31 March 2015, it was announced the company was buying the bulk of Thwaites beer supply business outright and the top two brands Wainwright and Lancaster Bomber for around £25m. [14] In May 2017, Marston's announced further expansion with the acquisition of Charles Wells's Eagle Brewery in Bedford. This gave Marston's ownership of the Bombardier, Courage and McEwan's ale brands, and the global licence for Young's beers. [15]

2020–present

In February 2020, Marston's signed a five-year extension to its distribution deal with Japanese beer maker Kirin. [16]

In May 2020, it was announced that subject to competition law and shareholder approval, Marston's would merge its brewing business with Carlsberg UK (the United Kingdom arm of Carlsberg Group), into a joint venture valued at £780m. Marston's will take a 40% stake in the joint venture and receive up to £273m in cash. The deal will involve Marston's six breweries and distribution depots, but not its 1,400 pubs. [17] [18] The merger was approved by the Competition and Markets Authority on 9 October 2020. The new brewing company will be headquartered in Wolverhampton and be known as Carlsberg Marston's Brewing Company. It was also announced that the transaction was expected to be completed by the end of October 2020. [19] The same month, the company announced that it will cut over 2,150 jobs (a fifth of their employees) as a result of the strict UK government measures to fight the spread of the COVID-19 pandemic. [20] In December 2020, Marston's took over the running of 156 pubs in Wales from Welsh brewer Brains. [21]

Andrew Adonis Andrea stepped down as CEO with immediate effect on 17 November 2023. [22] He was replaced by Justin Platt. [23]

By May 2023, the business had become heavily indebted; it set a target of reducing net debt to £1 billion by 2026. J.P. Morgan Cazenove analysts said in May 2023 that "a pub estate with mediocre [Like for Like] sales in recent years, combined with still-high leverage, makes us cautious despite attractive valuation metrics." [24]

It was announced on 8 July 2024, that Marston's had decided to sell their 40% share in CMBC to Carlsberg, in a bid to concentrate on the running of the pub business, in a deal valued at £206m. Carlsberg is also buying the soft drinks company Britvic and will combine it with that of CMBC. This does however leave the future of brewing in Wolverhampton in question and also the location of the head office. A review of the business will take place once the sale is completed and the company will notify stakeholders and employees of the future of the business when appropriate. [25]

Operations

The company operates over 1,350 pubs and bars across England and Wales as of 2024, [26] around 300 tenanted and 500 leased and a hotel chain. [27]

Related Research Articles

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References

  1. 1 2 3 "Annual Report 2023" (PDF). Marston's. Retrieved 15 February 2024.
  2. ↑ "Modern Slavery Statement" (PDF). Marston's. Retrieved 15 February 2024.
  3. 1 2 3 4 5 Oliver, Garrett (2011). The Oxford Companion to Beer. Oxford University Press. p. 573. ISBN   978-0-19-536713-3.
  4. 1 2 3 Lesley Richmond; Alison Turton (1990). The Brewing Industry: A Guide to Historical Records. Manchester University Press. p. 228. ISBN   978-0-7190-3032-1.
  5. ↑ "Marston's PLC". www.marstons.co.uk. Archived from the original on 13 April 2011.
  6. 1 2 3 "Marston's History & Heritage". Archived from the original on 13 September 2009.
  7. ↑ "Hanson's – a strong link with the past". 19 April 2007. Archived from the original on 22 February 2014. Retrieved 22 March 2014.
  8. ↑ End of an era at Castle Eden Northern Echo, 15 July 2002
  9. ↑ "History & Heritage | Marston's PLC". Archived from the original on 6 February 2014.
  10. ↑ Webster, Ian (15 January 2018). Brewing in Burton-upon-Trent. Amberley Publishing Limited. p. 80. ISBN   978-1-4456-7055-3.
  11. ↑ "CAMRA fears "domino effect" following purchase of Ringwood by Marston's". Archived from the original on 3 August 2007.
  12. ↑ "Marston's: Change of Name". Archived from the original on 29 September 2007.
  13. ↑ "NewRiver Retail swallows 200 pubs to turn into convenience stores". Proactiveinvestors UK. 28 November 2013. Retrieved 31 January 2016.
  14. ↑ "Marston's buys Thwaites brewing arm in £25.1m deal". BBC News. 31 March 2015. Retrieved 31 January 2016.
  15. ↑ "Real ale brewery sold to pub giant". BBC News. 18 May 2017. Retrieved 16 June 2019.
  16. ↑ Stone, Stuart. "Five-year extension to Marston's distribution deal with Kirin". morningadvertiser.co.uk. Retrieved 16 March 2020.
  17. ↑ "Marston's and Carlsberg UK announce £780m merger - BBC News". BBC News. 22 May 2020. Retrieved 23 May 2020.
  18. ↑ Rob Davies (22 May 2020). "Brewers Carlsberg UK and Marston's announce merger | Business". The Guardian. Retrieved 23 May 2020.
  19. ↑ Pugh, James (9 October 2020). "Regulator approves Carlsberg's £780m joint venture with Marston's". www.expressandstar.com.
  20. ↑ Hancock, Alice (15 October 2020). "Marston's to cut 2,150 jobs after UK clampdown on hospitality sector". Financial Times . Archived from the original on 10 December 2022. Retrieved 15 October 2020.
  21. ↑ Graham, August; Stephens, Lydia (23 December 2020). "Marstons takes over all 156 Brains pubs in Wales". WalesOnline.
  22. ↑ "Marstons CEO Andrea replaced by Merlin strategy officer". Morning Advertiser.
  23. ↑ "Marston's appoints Justin Platt as CEO as Andrea steps down". Sharecast. Retrieved 21 February 2024.
  24. ↑ "Disposals help Marston's with debt reduction". Investors Chronicle. 16 May 2023.
  25. ↑ Corser, John (9 July 2024). "Beer giant fails to commit to future of Wolverhampton brewery after Marston's sale announced". www.expressandstar.com.
  26. ↑ "Marston's launches new partnership agreement". www.pubandbar.com. Retrieved 21 February 2024.
  27. ↑ "Our Pubs – Marston's PLC". marstons.co.uk. Retrieved 30 March 2015.
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