Whitbread

Last updated

Whitbread plc
FormerlyWhitbread Holdings (2000–2001) [1]
Company type Public limited company
LSE:  WTB
FTSE 100 Component
Industry
Founded1742;283 years ago (1742) in London, England
Founder Samuel Whitbread
Headquarters Houghton Regis, England, UK
Area served
  • United Kingdom
  • United Arab Emirates
  • Ireland
  • India
  • Germany
Key people
RevenueIncrease2.svg £2,959.9 million (2024) [2]
Increase2.svg £674.2 million (2024) [2]
Increase2.svg £312.1 million (2024) [2]
Number of employees
38,000 (2025) [3]
Divisions
Website www.whitbread.co.uk

Whitbread, previously trading as Whitbread, Martineau & Co., [4] [5] is a British multinational hotel and restaurant company headquartered in Houghton Regis, England. The business was founded as a brewery in 1742 by Samuel Whitbread in partnership with Godfrey and Thomas Shewell, with premises in London at the junction of Old Street and Upper Whitecross Street, along with a brewery in Brick Lane, Spitalfields. Samuel Whitbread bought out his partners, expanding into porter production with the purchase of a brewery in Chiswell Street, and the company had become the largest brewery in the world by the 1780s. [6]

Contents

Its largest division is currently Premier Inn, which is the largest hotel brand in the UK with over 785 hotels and 72,000 rooms. Until January 2019 it owned Costa Coffee but sold it to The Coca-Cola Company. Whitbread's brands include the restaurant chains Beefeater, Brewers Fayre and Table Table. [7]

Whitbread is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

History

Chiswell Street brewery in 1792 George Garrard, Whitbread Brewery in Chiswell Street (1792).jpg
Chiswell Street brewery in 1792

Origins

The business was formed in 1742 when Samuel Whitbread formed a partnership with Godfrey and Thomas Shewell. They acquired a small brewery at the junction of Old Street and Upper Whitecross Street, along with a brewery in Brick Lane, Spitalfields, which was used for brewing pale and amber beers. [8] Godfrey Shewell withdrew from the partnership as Thomas Shewell and Samuel Whitbread bought the large site of the derelict King's Head brewery in Chiswell Street in 1750. [8] [9] The new brewery was for the specific production of porter, and was renamed the Hind Brewery after the Whitbread family coat of arms. [8] [10]

While not the first to brew porter, Whitbread was the first to exploit it commercially on a large scale. [10] This coincided with an increase in beer consumption in the UK, following regulations to limit the sale of gin owing to the excesses of the Gin Craze. [10] By 1758 production at Chiswell street was 65,000 barrels and the firm had become the largest firm of porter brewers in the UK. [10] From the outset, Whitbread was the leading financial partner, and solely responsible for management, and in 1761, Whitbread acquired Shewell's share of the business for £30,000. [8]

By the 1780s Whitbread had become the largest brewery in the world. [11] [6] In 1796 the company produced 202,000 barrels of porter. [8] The firm struggled after the death of Samuel Whitbread Sr, and saw ownership transfer to his son, also called Samuel Whitbread. [11] The company adopted the name Whitbread & Co. Ltd in 1799. [12]

Expansion and social welfare

By the 1810s, Samuel Whitbread Jnr (1764–1815) had brought in several new investment partners including his cousin Jacob Whitbread and the Master Brewer John Martineau I (1758-1834). [13] [14] Four generations of Martineau's descendants, father-to-son, would later sit on the board of Whitbread, including John Martineau I's great great grandson, John Edmund Martineau. [14] In 1812, the company merged with the Martineau Brewery holdings and by 1816, leadership was shared between William Henry Whitbread, Joseph Martineau and his father John Martineau I, who died in an industrial accident in a yeast vat in the brewery in 1834. Joseph Martineau became a partner in the business at the time of the merger – the same time as his father John. Three years later, in 1815, annual production reached 161,672 barrels, which at 36 gallons each, equated to over forty-six and a half million pints. Another of John's sons, Richard Martineau, later also became a partner. The business was known as Whitbread, Martineau & Co. until the mid-1840s. By 1860, William Henry Whitbread - nephew of Prime Minister Earl Grey, shared partnership of the firm with John Martineau II (1834-1910) - grandson of John Martineau I and grandson-in-law of Lord Stanley of Alderley. [15] [16] [17] [18]

In her published 1877 autobiography, John Martineau I's niece, author Harriet Martineau, wrote that she had been a guest at "the great Brewery" in December 1831 where she had presented herself "without notice" to her "kind cousin [John's son, Richard Martineau (1804 - 1865)] and his family" at the "great Brewery [where] night after night, the brewery clock struck twelve, while the pen was still pushing on in my trembling hand". She continued: "I was really glad to be alone during those three eventful weeks, - feeling myself no intruder and being under the care of attentive servants". [19]

By 1870, Whitbread had begun producing bottled beers for sale and continued to expand production. On 24 July 1889, the company became a registered limited liability company. [20] In 1914, the firm claimed it was "the largest beer bottler in the world." [21]

By the 1870s, John Martineau II had bought land in Eversley where he had boarded with his tutor Charles Kingsley. This was, as reported by the Bury Free Press in 1902, 'to rebuild cottages and to build fresh ones realising, long before it became the popular cry, that the fundamental basis for improving the health, happiness and morals of England was decent and healthy housing.’ [22]

Guinness Brewery

From 1904, Whitbread was bottling Guinness stout. [23] This cooperation, and rivalry, between the two breweries continued into the 20th century with both firms boasting a Master of the Worshipful Company of Brewers; John Edmund Martineau, the great great grandson of John Martineau in 1955 and Cecil Edward Guinness, the great great great great nephew of Arthur Guinness in 1977. [24] [25] In the 1920s Whitbread introduced the Double Brown which was designed to rival Guinness and was almost a recreation of Whitbread's original porter. [26] To safeguard any patents resulting in joint research by the brewing industry, in 1954, both Guinness and Whitbread provided the two Joint Directors for a new private company, "Brewing Patents"; John Edmund Martineau and Norman Bryce Smiley who were contemporaries at New College, Oxford. [27] [28] [29]

In 2000, The Guardian reported that Whitbread was the country's third largest brewer and that Guinness was the largest. [30]

20th century

The 1985-86 Whitbread Round the World Race Whitbread 1985-1986.jpg
The 1985–86 Whitbread Round the World Race

By 1905, the Chiswell Street brewery reached its largest extent and annual production throughout the company breweries had reached nearly 700,000 barrels. [31] Production decreased during the First World War with Whitbread brewing over 575,000 barrels in 1917. [32]

In the 1920s and 1930s, the company bought out several other brewers, including the Forest Hill Brewery and its pubs, and later the Kent Brewery Frederick Leney & Sons, with 130 of its pubs. [31] The company was also reorganised under the leadership of Sir Sydney Neville and introduced new ales, including Double Brown ale. [33] Whitbread ended regular production of porter in 1940 due to its declining popularity and a need to rationalise its product range following Second World War damage to its brewery sites. [34] 565 Whitbread pubs were also extensively damaged in the war, primarily during the Blitz. [35]

The company was first listed on the London Stock Exchange in 1948 following a decision by the principal owners to take the company public under the direction of WH (Bill) Whitbread. [11] [36] The next three decades saw Whitbreads merged with over a dozen other regional breweries, including Tennant Brothers of Sheffield in 1961 and Brickwoods in 1971. [37] Between 1961 and 1971, Whitbread's output increased from 46 to 160 million imperial gallons (2.1 to 7.4 million hectolitres) and it became Britain's third-largest brewer by output. [38]

British Royal Family

In 1962, Queen Elizabeth II and Queen Elizabeth, the Queen Mother paid a private visit to Colonel W.H. Whitbread (1900-1994) at Chiswell Street, 175 years after their respective forebears - King George III and his wife Queen Charlotte - had met at the same place on 24 May, 1787. A Managing Director at the time, John 'Jack' Edmund Martineau retired the following year but remained on the Board as a Director until 1977. By 1978, the lower part of the firm's Porter Tun Room was re-equipped to house the 272 feet long Overlord Embroidery. This had been commissioned by Lord Dulverton and donated to the nation by him in 1973. It was designed by Sandra Lawrence and took the Royal School of Needlework five years to complete. It was opened at Whitbread on 6th June 1978, the 34th anniversary of Operation Overlord, the Allied D-Day landings in Normandy, by Queen Elizabeth the Queen Mother who, having admired the embroidery, asked for more light on the face of the King. [39] [40] [41]

In 1971, Whitbread inaugurated the Whitbread Book Awards. [42] The next year, Whitbread became the initiating sponsor of the Whitbread Round the World Race, a sailing yacht race around the world held every three years. Whitbread sponsored the race until 2001. [43] In 1973, the company purchased Long John International, a Scottish distiller whose brands included Laphroaig whisky and Plymouth gin. [44] Later spirit acquisitions, also included the distiller James Burrough and the brand Beefeater Gin which was later sold. [45]

Whitbread acquired a 20% stake in TVS for £6.5M from European ferries in April 1984. [46] By 1982, the company turnover exceeded £1 billion for the first time. [44] In 1984, Samuel Charles Whitbread became chairman and a reorganisation of the company took place into separate divisions; the spirits arm, including Laphroaig was sold to Allied Distillers in 1989. [47] [48]

The company diversified into other hospitality holdings and invested in new ventures in the 1980s and 1990s, including Beefeater, Pizza Hut, Berni Inns, Heineken Steak Bars and TGI Fridays. [49] In the early 1990s, Whitbread was required to sell almost 2,500 pubs, as a result of the Supply of Beer (Tied Estate) Order 1989 (SI 1989/2390). [50]

In July 1996, Whitbread purchased the Pelican Group (comprising 110 restaurants under the Dôme, Mamma Amalfi and, primarily, Café Rouge brands) for £133m, [51] and in November 1996, Whitbread acquired the restaurant group BrightReasons (owner of brands including Bella Pasta and Pizzaland) for £46m. [52]

21st century

The former stables of the Garrett Street Whitbread Brewery in London (erected 1897) Whitbread's Stables 1.jpg
The former stables of the Garrett Street Whitbread Brewery in London (erected 1897)

In 2001, Whitbread decided to sell all its breweries and brewing interests (Whitbread Beer Company) to Interbrew, now known as InBev. [12] Whitbread-branded alcoholic beverages are still available in the UK, such as canned Whitbread bitter, but these are not produced by InBev, but rather under licence by other producers. InBev controls the use of the Whitbread brand and the hind's head logo for use on beverages. In 2002 Whitbread sold its pub estate, known as the Laurel Pub Company, to Enterprise Inns, [53] and sold its Pelican and BrightReasons restaurant groups for £25m to Tragus Holdings [54] (later renamed Casual Dining Group). The Whitbread & Co brewery building at 52 Chiswell Street in London still survives, although beer ceased to be brewed there in 1976 [11] and it is now a conference and events venue. Still named "The Brewery", it was part of the Earls Court and Olympia Group from 2005 to 2012, when it was subsequently sold to a private investor. [55]

In 2005, it moved its core operations from CityPoint in central London, to Oakley House in Luton, [56] and then, in 2006, to larger offices at Whitbread Court in Dunstable. [57] In 2006, it went on to sell 239 of its 271 Beefeater and Brewers Fayre sites to Mitchells & Butlers, who rebranded them into Harvester, Toby Carvery and a selection of other brands. [58]

In 2013, as part of the 2013 horse meat scandal, DNA tests ordered by Whitbread revealed that horsemeat was present in some meat products sold in outlets owned by the company, at the time Britain's biggest hotel group. [59] [60] On 26 February 2013 Whitbread vowed to remedy the unacceptable situation. [61]

In 2018, Whitbread faced pressure from two of its largest shareholders, hedge fund Sachem Head and activist group Elliott Advisers, to break itself up by splitting off the Costa Coffee chain, the theory being the individual businesses would be worth up to 40% more than the current market capital value. [62] On 25 April 2018, Whitbread announced its intention to demerge Costa. [63] On 31 August 2018, it announced that The Coca-Cola Company had agreed to buy Costa Coffee for £3.9bn. [64]

In September 2020, the company announced that they would be cutting jobs, warning that 6,000 staff could lose employment. The company blamed the cuts on a slump in hotel guest numbers since the beginning of the UK's lockdown in response to the COVID-19 pandemic. [65]

Sir Samuel Whitbread died in January 2023 and was the last family chairman of the brewery, who hastened the company’s move from beer to leisure. [66]

Current operations

Whitbread's principal current operations are:

A Premier Inn in Crawley Premier Inn Hotel, Manor Royal, Crawley.JPG
A Premier Inn in Crawley

Premier Inn

Premier Inn is the UK's largest budget hotel chain, with over 750 hotels. [67]

Table Table

Table Table signage (Swinging Bridge, Urmston, Greater Manchester) Table Table signage (Swinging Bridge, Urmston, Greater Manchester).jpg
Table Table signage (Swinging Bridge, Urmston, Greater Manchester)

Table Table is a UK restaurant brand. They started as converted Brewers Fayre restaurants. The brand was originally set up in 2006 unnamed; the name Table Table was launched in May 2008. There are around 100 sites in the UK. [68]

Beefeater

Beefeater was launched in 1974. The chain underwent a huge revamp in the early 2000s. It then proceeded to change its name to "Beefeater Grill" for a period but in 2014 reverted to "Beefeater". Beefeater has 140 restaurants across the UK. [69] In April 2024 Whitbread announced plans to sell 126 unprofitable Beefeater and Brewers Fayre restaurants. It also set out plans to close a further 112 restaurants and convert them into more hotel rooms. [70]

Brewers Fayre

Brewer's Fayre, Royal Quay, North Shields Brewer's Fayre, Royal Quay, North Shields - geograph.org.uk - 121055.jpg
Brewer's Fayre, Royal Quay, North Shields

Brewers Fayre is a pub-restaurant brand which was created in 1979. The pubs are designed to look and feel like traditional local pubs but with a particularly strong family presence. There are around 145 pubs across the country. [71] In April 2024 Whitbread announced plans to sell 126 unprofitable Beefeater and Brewers Fayre restaurants. It also set out plans to close a further 112 restaurants and convert them into more hotel rooms. [72]

Whitbread Inns

The Whitbread Inns brand of restaurants was created by Whitbread in 2014. In January 2016 there were 13 pubs (all of which were Table Table) across central and southern England. [73]

Former operations

Whitbread's former operations include:

References

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