Assessing the decline of the pub industry

Assessing the decline of the pub industry The Leisure Industry is one of the major part of UK economy and has many branches. The key components of UK leisure industry includes pubs, bars, restaurants, cinemas, sport and physical recreation, arts and entertainment, countryside recreation, home based leisure and activity based leisure. Pub industry plays a vital role in community cohesion and social life in Britain and attracts millions of tourists every year. Pubs are frequently remaining few places where communities come together to socialize. Mintel Report states that in 2008 the pub sector experienced some of the toughest trading conditions because of the reasons like smoking ban, licensing laws, credit crunch, changing dining habits and cheap supermarket booze. Despite facing the tough conditions it is still on top of the UK leisure industry holding maximum share. The following report will show changing trends in UK Pub industry along with analyses articles written on Pub industry and showing data taken from Mintel UK lei sure industry review report and then exploring the Pub industry information to possible events to be included within the portfolio. Smoking Ban Since the smoking ban was introduced there has been a marked decline in number of pubs in UK. There was an expectation that smoking ban would become more appealing to a wider consumer base such as women and families. The ban has shown the rise in the food business, however the loss of frustrates smokers has not been matched by the influx of new pub goers. Between 2004 and 2007 all of the four United Kingdom legislatures voted to introduce a ban on smoking in most enclosed public places and workplaces. The bans came after considerable debate centered around the risks of exposure to environmental tobacco smoke and especially on the likely impact of a ban on the hospitality industry and particularly Britains pubs. (Paraphrase It and give PUB Visiting Mintel referencing -According to an Office for National Statistics report (2008/09) on visiting pubs since smoking restrictions were introduced, by smoking status; one in four smokers went to the pub more often before the smoking ban, compa red to one in five non-smokers who go more often nowadays. Mintel Pub Visiting Report (2010) shows that while a third of consumers (32%) agree drinking outside the home is more enjoyable since the smoking ban, there are mixed reports as to whether the smoke-free laws have achieved the health benefits expected. A report by NHS Information in September 2009 stated that men over the age of 35 smoke fewer cigarettes than before the ban, but younger men have started smoking more since it was introduced. Positive findings from the report were that a third of smokers now stay at home to smoke instead of going out, resulting in adults being exposed to less second-hand smoke than before the ban. Credit Crunch, Changing Dining Habits, Higher Taxes and Cheap alcohol selling by supermarkets White (2009) states that the UK Pub industry is facing perfect storm and finding it hard to compete with cheap alcohol sold at supermarkets, a trend increasing amid the credit crunch. Mintel Report shows that pub sales declined after the increase in taxes with their new licensing laws done by government and recession which led in increase of alcohol sold at supermarkets resulting in people changing dining habits. In 2007 Pub industry earned 26000 million pounds however in 2009 UK Pub industry earning has been gone down to 24000 million pounds resulting in loss of 2000 million pounds. According to Pratten (2003) the reason for falling trade is the major changes in pattern of leisure. Home entertainment became increasingly popular with an increase in rented videos and television. When combining the greater varieties of take away food and the lower prices of alcohol at the off licenses and supermarkets, a night at home become more attractive to people and the use of licensed retail prem ises fell. Moreover people are more willing to save for foreign holidays. As shown in Figure 2.2, the value of market was showing an increase until 2007; however it dropped by 3.08 percent in 2008 and 4.76 percent in 2009. Muir (2009) states that the changing consumer taste in alcoholic beverages in one of the factor of long term decline. Beer is the mainstay of pub incomes and yet beer consumption has fallen significantly in the last thirty years as show in Figure 2. 3. The Pub Industry is also facing tough competition from alternative leisure pursuits. The relative affluence of the last decade saw a significant rise in the number of people eating out in restaurants and there was a threefold increase in the rate of new restaurant openings between 1992 and 2007. (BBC News Online 2007). According to Mintel Report (2009) there has been a sharp increase in number of live sports event attendees from 2004 to 2009. In Addition, there has also been a significant rise in cinema attendees in recent years, which reached a 38 year high in the summer of 2007(The Independent 2007). According to the figures published in BBPA Statistical handbook 2010, there was a sharp, 6% decline in total alcohol consumption in 2009, making it the fourth annual decline in five years. UK drinkers are now consuming 13% less alcohol than in 2004. UK consumption remains below the average for the EU The UK Pub licensees are also facing rising cost. Increased materials and utilities prices have been passed on by the brewers in the higher wholesale price of beer. A shortage of malting barley and rising demand for bio-fuels has seen barley prices increase faster than inflation. Packaging costs have also been driven up by rising energy prices (BBPA 2008b). Licensees have seen their own operating costs increase. For example licensees have had to spend increasing amounts on entertainment to stay competitive. A recent survey by the ALMR found that their members third largest cost was entertainment. The 2003 Licensing Act abolished the two in a bar rule which had meant that no licence was r equired for putting on two live performers. In addition many pubs rely on live football to bring people through the door and Sky television fees have continued to increase. These are calculated on the rateable value of the pub and this can be disproportionately expensive for small pubs in higher rated rural areas.(APPBG 2008). Why Pubs matter The UK Pubs act as hubs for the development of social network between local people. As per data shown in figure 3.1 by CAMRA Omnibus survey (January 2009) 36 percent of the people said that pubs were important for get together compared with local cafes and restaurants showing 20 percent and 15 percent for local shops. According to APPBG (2008) the pub industry amounts to 2 percent of national GDP and community pubs provide 350,000 full or part time jobs. Mintel (2010) latest report on Pub visiting shows that 34 pubs were closed per week which were drink led and 5 pubs were closed which were food-led between July to December 2009. According to CGA, the pub closure rate has slowed to 29 per week for the first six months of 2010. At it worse, the pub closure rate was 52 pubs per week.( Morning Advertiser 2010). In addition, government has unveiled measures to protect british pubs which include 3.3 million pounds to be spent on business support to make pubs more successful and to help communities buy into struggling premises to keep them open. Pubs will be allowed to extend into ventures including restaurants, gift shops and book shops without planning permission. (BBC News) In addition to this benefit, pubs add a great deal to UK economy and hold a highest share in UK leisure industry. As per data shown in graph below, Pub industry holds 35 % share of total leisure industry by earning 24000 million pounds in 2009 According to news published in Guardian the government would be consulting on the introduction of banning low cost alcohol sales. Report suggested that supermarkets will be banned from selling wine, beer and spirits below a national minimum price. Conclusion The UK Pub industry is more than retail business which act as a local institution for encouraging people to mix with others from different background. In recent years the pub industry has been hit hard with thousands of pubs closed due to recession, smoking ban, high rents. But in any downturn there are opportunities which are investing in an independent or managed Pub located in central place offering good variety of food and drinks along with warm and friendly environment. While the pubs remain biased towards men, pub needs to sell wine and ciders to attract women market. In addition, the steps taken by government to save pubs are a good option to invest in pub industry.

Beer Industry Marketing Analysis Essay

The Beer makes up most of the alcoholic beverage industry, with a 74% volume in 2002 (Alcoholic Beverages, 2005). The production of beer around the world has increased from 36. 85 billions gallons in 2000 to 38. 78 billion gallons in 2003 (Alcoholic Beverages, 2005). Beer production has been a part of society close to the beginning of civilization. A Mesopotamian tablet dating back to 7000 B. C. contains a beer recipe named ?  §wine of the grain (Alcoholic Beverages, 2005). In 1292, a Czech Republic town produced its first pilsner beer. A prominent beer brand, Pilsner Urquell, brewing dates back to the early thirteenth century. Beer is produced with a mixture of mashed barley, malt, and rice or corn. U. S. brewers use filtration systems as well as add additives to stabilize the foam and allow long lasting freshness. Bottled or canned beer is almost always pasteurized in the container in prevent the yeast from further fermentation. After 1996, the U. S. beer industry had consistent growth with about 3,500 brands on the market in 2002 (Alcoholic Beverages, 2005). The U. S. exported beer to almost one hundred countries worldwide. The beer industry peaked production with 6. 2 billion gallons in 2003 (Alcoholic Beverages, 2005). The U. S. beer industry haws over 300 breweries. However, this industry is dominated by three companies: Anheuser Bush (45% of the industry), Miller Brewing (23% of the industry), and Adolph Coors (10% of the industry) (Overview of the U. S. Beer Industry, 2005). MARKETS BASIC PRODUCT/SERVICE OFFERINGS There are several different types of commercial beer, consisting of pilsner, lager, ale, stout, light, low-carb, malt liquor, dry, ice-brewed, bottled, draft, and non-alcoholic. Further, the U. S.market has been divided in to three categories: super premium, premium, and popular-priced (Alcoholic Beverages, 2005). In 2002, the U. S. Market Share Reporter stated that light beer consumed 40. 1% of the beer market, premium held 25. 9% of the market, and popular-priced beer held the remainder. Here is a brief description of the most popular types of commercial beers: ?  «Lager: a high carbonated beer, containing a low alcohol content, with a pale, medium-hop flavor ?  «Stout: a thick, dark beer, almost like syrup ? «Porter: a sweet, malty flavored brew with a farley high alcohol content ?  «Malt Liquor: a mostly malt based containing high amounts of fermentable sugars ?  «Light: a reduced calorie brew made by decreasing the grain amount used when brewing or by adding enzymes to break down the starch content in the beer (Alcoholic Beverages, 2005). One small segment of the beer industry is the micro brews. This segment as well as brewpubs had a double-digit increase in the U. S. throughout the early 1990?  ¦s (Alcoholic Beverages, 2005). However, this increase started to decline toward the end of the 1990?  ¦s. This was mostly due to overexpansion. This did not stop all the microbreweries from continuing to open in the U. S. which allowed this market to show considerable growth. In 2002, the U. S. reportedly had 396 microbreweries, 46 regional specialty breweries, and 994 brewpubs (Alcoholic Beverages, 2005). III. MARKET STRUCTURE AND ATTRACTIVENESS Market Structure The three major players in the brewing industry, Anheuser-Bush, Miller, and Coors Co. , have started increasing their market shares at the expense of smaller national brewers. The alcoholic beverage industry has gone through a consolidation period since the consumption rate has declined over the past few years (Overview of the U. S. Beer Industry, 2005). One of the markets that have flattened in this industry is the domestic beer market. This industry has hit a mature stage where consumption rates have flattened. This caused price increases to help suffering companies increase its profit margins (Overview of the U. S. Beer Industry, 2005). This along with increased vertical integration and inherent production economies makes it very difficult for a inefficient major industry player to compete nationally. The market that is dominating the brewing industry is the micro brewers. This group has found a niche market in the beer industry and has steadily driven the market share upwards. These companies normally target the smaller market segments and do not try to compete with the large industry brands. To achieve such successful profit margins, the micro brewers have the production process under contract with a regional brewer (Overview of the U. S. Beer Industry, 2005). Attractiveness The attractiveness of the beer industry is steadily growing. However, it is not growing in to area of large domestic brewers. This area of the beer industry has hit a flat consumption growth. The area that is become more attractive is the micro brews. From 1999 to 2002, the micro brew market grew almost 11 percent in the U. S. (Future of †¦Ã¢â‚¬ ¦ Specialty Beer, 2004). This has caused the major companies in this industry to break into this niche market by combining forces with smaller companies or penetrating the market with a new micro brew product line. This niche market remains attractive to any investors due to the fact that the micro brew consumers will not react negatively to higher prices or price increases (Overview of the U. S. Beer Industry, 2005). The other area in the beer industry that continues to flourish is the international beer market. From 1999 to 2003, the market share for imports grew from 9. 1% to 11. 9%, respectively (Future of †¦Ã¢â‚¬ ¦ Specialty Beer, 2004). Not only does the increase in market share hinder the domestic brewing companies, but the average case for imported beer is $24. 27 and for domestic beer is $16. 47 (Beer Report, 2003). This shows that imports sales are much higher due to increase in market share. As well, from a revenue stand point the international market has a higher attractiveness over the domestic market. From this, U. S. beer firms have penetrated into the international market by joining with international brewing companies to become American distributors for their brands. The continuing growth of U. S. beer firms penetrating international beer markets are due to the continuance of licensing agreements, direct exports, and foreign investments (Alcoholic Beverages, 2005). IV. Porter?  ¦s Five Forces Model A good way to look at the beer industry is by using the Porter?  ¦s Five Forces Model. This analysis will help analyze the attractiveness of the industry as well as discuss the ease of entry and exit. Threat of Substitutes: Substitutes for this market include wine and distilled spirits. The wine industry consists of grape wine, sparkling wines, brandy, and fermented dinks (Alcoholic Beverages, 2000). Most distilled spirits are based on name brand products including vodka, gin, rum, whiskey, and liquors and cordials. Both of these markets have a major capability of expanding due to international exports. Another substitute for the domestic beer market is the higher priced brewed beverages including micro brews or imports. Though these products do carry a much higher price, the customers willing to pay higher prices are capable of using a substitute. Threat of New Entry: The threat of new entry in this market is relatively low. The legal costs and economics of scale in the manufacturing and distribution areas of the beer market are strongly weighed to successfully compete (Overview of the U. S. Beer Industry, 2005). This prohibits most potential entrants. Buyer Power: Since there are many different competitors and substitutes in the alcoholic beverage industry, the buying power is in the hands of the buyer. The only approach to sway the consumers buying behavior is through advertising and marketing. Supply Power: Some breweries in the U. S. hold no supply power. All the company is responsible for is brewing the beer. On the other hand, the large domestic beers, for instance Coors Brewing Co. , have a manufacturing plant where it controls of the manufacturing process with it products. Companies who have this capability hold huge amounts of supply power. This sometimes eliminates manufacturing costs from another company. Intra-Industry Rivalry: Competitive rivalry remains strong amongst the three leading companies in the beer industry, Anheuser-Bush, Miller, and Coors. These three companies battle against each other through advertising and market share. The micro brews in the beers industry also compete against each other to hold a competitive advantage over other products at that level. This area of the beer industry competes as well using advertising, packaging, and market share. Political Variables/Trends There are quite a few political variables to consider in the beer industry. The first issue in this industry is the implementation of taxation on alcohol sales. Governments around the world strong believe in taxation on alcohol to both increase revenue and decrease consumption (Alcoholic Beverages, 2005). This trend has been effective since the consumers continue to purchase the products no matter how high the prices. The U. S. has had the lowest tax rates on its alcohol sales compared to other countries. In 1991, the tax rate on beer doubled to $18 per barrel, equally 16 to 32 cents per six pack (Alcoholic Beverages, 2005). This was a sharp increase from its previous tax rates. The next political view most companies have had to deal with in the alcoholic beverage industry is the issue of alcohol abuse. Many companies have to monitor how it markets its products to now allow the persuasion of binge drinking or excessive drinking. The National Institute of Alcohol Abuse and Alcoholism estimates costs of $140 billion per year relate to alcohol abuse (Alcoholic Beverages, 2005). Drunk driving has been another issue that beer companies have come under attack in relation to beer sales. The government has pasted several laws in the past to stricken the drink and driving laws. The U. S. Senate passed a law to decrease to legal blood-alcohol level from . 10 percent to . 08 percent. As well, a bill was passed regulating the legality of having open containers in a moving vehicle. This was passed in the Senate making it illegal to have any open containers in a moving vehicle. Marketing to minors was another issue that several beer companies got slammed with in 2004. Lawsuits were filed stating that some of the marketing tactics in the beer companies commercial were intention targeting underage drinkers (Lawsuits, 2004). The courts argued that the material used in the commercial ads were young video games and models ?  §chosen to appeal to underage consumers (Lawsuits, 2004). Some of the brewing firms decided to implement underage drinking warnings in its ads to cover itself from any future litigation Economic Variables/Trends The economic trend in the large domestic beer market has pretty much flatten entering in the maturity stage in the product life cycle. This will mean that sales will mostly stay consistent with little increase. Unless the major companies can try to dominate the niche markets in the beer industry, they will need to use advertising and marketing to drive sales. The fear of consumers switching to a substitute product like the micro brews could be present. Thus, branching out into that niche market would help the companies to gain higher market share and increase sales. Social Variables/Trends The major social trend in the beer industry is the ?  §low carb craze (MacArthur, 2004). Americans have entered into a low-carb phase. Beer sales decrease a good amount following the introduction of this phase into the American food markets. Anheuser-Busch had a heading start when this phase started since it was the first to implement a low-carb beer, Michelob Ultra, into the alcoholic beverage industry. This sparked a spin off with other major companies and soon mostly all major players in the industry had developed a low-carb beverage (MacArthur, 2004). Anheuser-Busch, Coors Brewing, and Miller were putting together a $300 million media campaign supporting any brands that help avoid a beer belly (MacArthur, 2004). In 2003, Bud Light still led the market with an increase from 2. 6% to 8. 1% while Coors Light volume decreased from 0. 6% to 8. 5% of the market share (MacArthur, 2004). Technological Variables/Trends Technology in this industry is mainly computer based focused. Companies use computer software and equipment to allow for efficient production of the products being manufactured. Also, increase in technology variables could mean better advertising strategies due to the technology created. On top of being used to speed up the production and efficiency of service, new technology also has been used to pull well-defined reports that become useful with inventory and point-of-sale purchases. V. ECONOMIC PROFITABILITY ASSESSMENT VI. MARKET POWER DISTRIBUTION AND PERFORMANCE VII. TARGET RECOMMENDATIONS

The Nuiances of Compare and Contrast Apush Essay Topics

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Simply create two overlapping circles, one for each o ne of the topics which you are comparing. How to Get Started with Compare and Contrast Apush Essay Topics? The end consequence of a comparison and contrast essay ought to be a deeper knowledge of a topic. The conclusion is the simplest part. The introduction also provides you an opportunity to reveal your stance. Another subject has to be connected with the first one and offer clear reference stressing how they are similar or various. Compare and Contrast Apush Essay Topics Help! To begin with, you can include as many paragraphs as possible based on the ideas which you have. A paper may contain over five paragraphs altogether based on the variety of subjects a student makes the decision to analyze. The duration of your essay and number of body paragraphs you have depends on the number of points that you have, or how many diverse topics you're trying to compare and contrast below your subject place. 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Dangers of Cell Phone Use While Driving Essay - 1306 Words

Over the last few decades, the use of cell phones has become a very common tool. Furthermore, Technology has certainly advanced, and the cell phone is becoming the most preferred mode of communication. The demand for a cell phone is growing every day. In addition, the use of wireless technology is affordable, and anyone can buy a cell phone at a reasonable price. They come in all shapes and sizes. They range from black to bright metallic white. American public use of cell phones is increasing everyday. As the number of people using cell phones increase, the use of cell phones while driving will also increase on our streets and highways. At the same rate, motorists still converse on cell phones and write text messages while driving.†¦show more content†¦In addition, I have observed that many automobile accidents are associated with cell phone use by drivers. It has caused many states across our map to consider restricting the use of cell phones by drivers. Drivers preocc upied by non-driving activities are prone to causing an accident. Therefore, the use of cell phones has been one of the main contributors to car accidents. Many drivers keep their cell phones in their vehicles. However, when it rings, he is not going to ignore it because it may be an important call. Therefore, he loses concentration while driving, and he will not focus 100% on the road. However, many States have rightfully stopped local governments from prohibiting cell phone use by motorist, and they have enforced strict rules to control their usage. For example, driving a state vehicle a person can be terminated if caught texting and talking on a cell phone. It is no joke! On the other hand, one may argue that the state gives someone a driving license after ascertaining that he is not only responsible but also capable of making the right decisions when driving. However, others may argue that using their mobile phones while driving is equivalent to conversing with a passenger. Thus, it is no more distracting than eating fast food or fumbling with the music system in your vehicle. At the same time, a motorist can make decisions, and he should decide whether to use a cell phone while driving. If an accident occurs, it can beShow MoreRelatedDangers of Cell Phone Use While Driving562 Words   |  2 Pages It has been reported that roughly 660,000 U.S citizens use their cell phones while driving on a daily basis. You are four times more likely to get into an accident if you are talking on your cell phone and twenty-three times more likely to get into a car crash if you are texting while driving. Reports have also shown that 11% of drivers who are between the ages of 15-19 were distracted at the time of a fatal crash. A cell phone distracted 21% of those drivers at the time of the fatal crash. Of theRead MoreEssay on The Dangers of Cell Phone Use While Driving604 Words   |  3 PagesFor years, people who driving under influence leading causes of road accidents in many countries. Many people have a cell phone and some even call their cell phone their life line. The cell phone is a provider of very important information such as addresses, phone numbers, and important dates. However, while the cell phone has many positive attributes like keeping people in touch, the cell phone becomes very dangerous when a person decides to drive and use it.This obliged many countries especiallyRead More Cell Phones And Driving: Dangers Involved with Cell Phone Use While Driving1036 Words   |  5 Pagesoften. Talking on the cell phone and driving has become a very popular thing these days. Technology is coming out with the newest phones that can do everything for you and people are attracted to that. There are people that don’t have hands free and drive their car with only one hand, people that text and totally take their eye off the road and type conversations to each other. Bluetooth is another technological breakthrough where you wear an ear piece and can receive phone calls by one touch ofRead MoreCell Phones in the Hands of Drivers:1096 Words   |  5 PagesCell Phones in the Hands of Drivers: A Risk or a Benefit? As of 2000, there were about ninety million cell phone users in the United States, with 85% of them using their phones while on the road (Sundeen 1). Because of evidence that cell phones impair drivers by distracting them, some states have considered laws restricting their use in moving vehicles. Proponents of legislation correctly point out that using phones while driving can be dangerous. The extent of the danger, however, is a matterRead MoreThe Epidemic of Texting and Driving Essay1478 Words   |  6 PagesAutomobile crashes as a result of texting while driving is an epidemic that has taken over the nation in the past years. In today’s society, people have become more and more dependent on technology as everyday uses. How many can honestly say that they have text and driven? How many have had to swerve, stop on the brakes or almost gotten into an accident because of it? Texting while driving is the most common thing that almost everyone has done or seen. The main iss ue and threat is that peopleRead MoreCell Phones in the Hands of Drivers: a Risk or Benefit?1570 Words   |  7 PagesCell Phones in the Hands of Drivers A Risk or a Benefit Ariana Laguna English 102 Professor Barnes/Walter 10 December 2012 Outline THESIS: Unless the risks of cell phones are shown to outweigh the benefits, we should not restrict their use in moving vehicles: instead, we should educate the public about the dangers of driving while phoning and prosecute irresponsible phone users under laws on negligent and reckless driving. I. Scientific studies havent proved a link between use ofRead MoreThe Dangers Of Texting While Driving1561 Words   |  7 PagesEnglish 015 18 September 2014 â€Å"Almost Home† With the society we live in today, a cell phone almost becomes a necessity. Although cell phones come in handy and even make life a little easier, our cell phone usage is becoming a threat to us. There are several ways in which this powerful object can be dangerous. Texting while driving is one danger many do not realize until something drastic happens. Texting while driving is not only a threat to us, but as well as other drivers, passengers, and pedestriansRead MoreIs Texting Your Friends Or Family More Important Than Your Life? Essay789 Words   |  4 Pagestheir cell phone while driving. â€Å"One out of every four car accidents in the United States is caused by texting and driving.†(Cell Phone Use While Driving Statistics) Using a cell phone while driving is dangerous, distracting, harmful, and may cause accidents. According to statistics, every day about 66,000 people try to use their phones while driving. â€Å"The National Safety Council reports that cell phone use while driving leads to 1.6 million crashes each year.†(Cell Phone Use While DrivingRead MoreStop the Use of Cell Phones While Driving854 Words   |  4 Pages13 2013 Many people driving don’t know that they can be so many wrongs they can be doing without realizing it. Plenty talk on the phone while driving, drink, text and drive. A lot of people even innocent people as well have had accidents involving one of those. Out of the three there has been one that has become more common, and it’s only increasing if people don’t put a stop to it themselves. A usage of a cell phone should not be displayed at any point while driving. It can wait many have hadRead MoreImportance Of Cell Phone Safety Essay1056 Words   |  5 PagesThe cell phone safety In spite of the fact that cell phones convey a few expediency and advantages to our lives, they additionally have some possibly unsafe impacts. Disclosure of cell phones has been one of the critical technological progress lately. A portion of these effects has contributed emphatically to our lives, yet at the same time, others have affected contrarily. The cell phones have had a noticeable effect on the social life of individuals. In any case, cell phones have accompanied