Belhaven owner prepares to sell 37 Scots pubs in ‘rationalisation’ drive

GREENE King, the Suffolk-based beer-maker that bought Dunbar’s Belhaven brewery in 2005, has hoisted the “for sale” sign on 37 Scottish pubs.

The group said it was selling the bars, which are spread along the east coast from Banff to the Borders, so it can focus on “quality pubs and new developments in Scotland”.

All 37 outlets are part of the group’s leased and tenanted estate, in which landlords run the pubs on behalf of the firm, as opposed to outlets which are managed directly by the group.

Greene King has grown its profits in recent years by offering more food in its pubs, using brands such as Eating Inn, Hungry Horse and Loch Fyne Restaurants, which it bought from its eponymous Argyll-based owner in 2007 for £68 million.

The group – which also brews beers including Greene King India Pale Ale, Abbot Ale and Old Speckled Hen – is tomorrow expected to post a 7 per cent rise in interim profits to £78m, according to analyst Douglas Jack at Numis Securities, buoyed by profit growth at managed pubs.

Following the latest sales, Belhaven – which is being fully merged early next year into Greene King’s other operations – will still have more than 300 pubs north of the Border.

A Greene King spokeswoman said: “Belhaven is to sell 37 pubs as part of a rationalisation programme of its leased and tenanted estate to ensure the focus remains on investments in quality pubs and new developments in Scotland. Belhaven has over 300 pubs across Scotland ranging from city centre sites to village pubs.

“The 37 licensees have been notified of the sales, which are being handled through agents at DM Hall, and Belhaven will be working with them during the transition.”

Graeme Todd, a partner in the Glasgow office of chartered surveyors firm DM Hall, said: “We are seeing a very positive response to the sale of the Belhaven portfolio, which covers a geographic area from Banff in the north right down to the Borders.”

He added that six pubs were already under offer, with the others likely to attract investors or property companies looking at alternative uses.

Belhaven – whose brands include Best, 80/- and St Andrews Ale – traces its roots back to 1719 and was family-owned until 1984. Greene King is another venerable name in the brewing industry, having been founded in Bury St Edmunds in 1799.

News of the pubs disposal came as rival brewer and pub operator Marston’s unveiled plans to open a further 25 bars next year – all south of the Border – and create 1,000 jobs.

The company – which makes beers including Pedigree, Banks’s Bitter and Cumberland Ale – posted a 9.4 per cent rise in underlying pre-tax profits to £80.4m for the year to 1 October on the back of a 4.8 per cent increase in turnover to £682.2m.

Marston’s has also focused on serving meals, with like-for-like food sales up 5 per cent and now representing 42 per cent of revenues. More than 26 million meals were sold at an average spend per head of £6.10.