Fullers acquires cider producer Cornish Orchard after revealing 7% revenue growth
Fullers has announced the acquisition of cider producer Cornish Orchards and plans for the introduction of a craft lager after reporting 7% growth in sales.
The pub group saw revenue in the 52 weeks to 30 March rise 7% to £271.5m (£253m in 2012), while like for like sales were up 2.1% and adjusted profit before tax was up 5% at £31.7m.
It also announced the acquisition of Cornish Orchards and its Cornish Gold brand for £3.8m, a move that will give Fullers a foothold in the premium cider market.
Meanwhile, the group has also launched Frontier, a new unpasteurised craft beer that will be launched in 50 UK pubs before a wider roll out.
The group purchased four new pubs during the year and said that new acquisitions, which were likely to total £31.5m, would be made in prime locations in market towns, transport hubs and London.
It said that the Parcel Yard, which opened last year in the new Kings Cross station concourse had traded ahead of expectations and was now the largest retailer of cask ale on the estate. An airside pub in Heathrow's Terminal 2 is also planned for 2014.
Fullers said that trading so far in 2013 had been strong, adding that it hoped this year would not be as blighted by the weather as 2012. However, it did say that the spotlight on London last year had "celebrated all things British" adding: "The legacy of this tremendous promotion of ‘brand London' will benefit us for many years to come, both in our iconic London pubs and through our award winning ales which are now enjoyed in some 68 countries around the world."
Fullers chairman Michael Turner said: "We are excited to be implementing our new beer company strategy which features a number of initiatives. We have just launched our latest product innovation, Frontier, a new wave craft lager brewed over 42 days and unpasteurised to satisfy discerning drinkers looking for more flavour. We have also entered into the premium cider market through the recent acquisition of Cornish Orchards and their flagship brand, Cornish Gold, a truly delicious, quality craft cider made from freshly pressed apples.
"Trading for the current year has started positively and like for like sales in our managed pubs and hotels were up 7%. We look forward to the prospect of a year less blighted by the weather in which consumers are inspired to enjoy the summer in the great British pub, or even better, in that pub's garden."
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