PUB group Marston’s said the demand for drink continues with sales at one per cent below pre-pandemic levels amid “encouraging” trading despite cost pressures facing customers.

The Midlands-based business saw its shares rise after the annual update which also revealed more recent sales since July were up year-on-year on 2021 and on pre-pandemic levels.

Marston’s, which employs 600 in Scotland and has 22 pubs north of the Border including Jenny Burn in Rutherglen and Foundry 39 in Edinburgh, said people are still visiting community pubs, and that it is optimistic for an important winter period, which will include the 2022 World Cup.

Andrew Andrea, chief executive of the Wolverhampton firm, said the business is yet to see a change in behaviour from pubgoers because of the cost of living.

“We are currently not seeing any discernible change in behaviour and that momentum is continuing,” he said. “People are most likely to be assessing their big-ticket spending and still want to keep up their normal socialising, like going to the pub. We are in a good position going into the winter and obviously have both the World Cup and first Christmas without restrictions for three years so there is no reason why we can’t see year-on-year growth."

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Marston’s said: “The level of customer demand remains encouraging, notwithstanding the continued uncertainty around the cost of living.

“We continue to have confidence that our pub strategy is beginning to deliver positive momentum, evidenced by this good trading performance.

“Our strategy is centred upon delivering affordable pub experiences for our guests in a quality environment both inside and out."

It said that "the combination of our strategy and the predominantly community-based location of our pubs means we are well-placed to meet the challenging consumer environment".

Marston’s revealed the like-for-like sales dip of 1% over the year to October 1, compared with pre-pandemic levels, on Tuesday.

It said this was particularly impacted by the spread of the Omicron variant of Covid-19 in December and January.

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Sales over the last 10 weeks of the year - from July 24 to October 1 - were up 4% year-on-year and 3% higher than pre-pandemic levels.

The group said growth was “predominantly driven by drink sales”, with food sales weaker amid the hot summer weather.

“People didn’t want a carvery in 35 degree heat but any negative impact in food was easily offset by strong drink trade,” Mr Andrea said.

The chief executive said the company has continued to find hiring kitchen staff a “challenge” but said it has not closed any kitchens as a result. Mr Andrea said the firm is training recruits in both kitchens and front-of-house in order to ease staffing pressures.

He said: “This is a good performance, with the trading momentum we experienced in the summer continuing. Whilst we are not complacent and can’t predict what the future will hold, what is clear is that people want, and are continuing, to visit our predominantly community pubs.

"Looking forward, we are primed to maximise the trading opportunities provided.”

Shares in Marstons were up 3.6% in early trading, and closed at 37.98p, up 5.79%, or 2.08p.