THE beauty of Belhaven is that it is too small to be a serious threat to the Scottish beer duopoly of Bass and Scottish &
Newcastle but big enough to attract an increasing number of free trade customers, now in excess of 1000 accounts.
But the share price has not yet fully realised the potential of a company which seems likely to put in a performance considerably above that of the other regional brewers. Earnings may increase by perhaps around 15% compound, or twice the average.
The barrelage gains of more than 6% in a declining market reflect the expansion in the pub estate which will increase to perhaps 100 outlets by the end of next year and also demonstrate greater throughput in a market which is becoming fiercely competitive.
The expansion programme is aimed at moving towards higher-quality pubs as the beer offer-ing continues to be a much more important facet than food, which is the one aspect most
competitors are emphasising.
The higher profile of drinks is underlined by the steady improvement in on-trade sales in its pubs compared with the downward movement seen across Scotland as a whole. A further improvement in weekly sales above last year's #6100 in the managed estate is a priority.
Encouragingly, the quality of the loan book is well above average with bad debts negligible at a time when, south of the Border, players are beginning to see some deterioration.
Belhaven has concentrated on the ale market rather than trying to create its own lager - which, overall, has been a failed concept among the regionals in the face of the marketing power wielded by Bass, Scottish & Newcastle and Whitbread. That policy has allowed sufficient elbow room for the smaller company to emphasise that it is ''different''.
It would seem Belhaven will have a strategic advantage in the marketplace later this year when Carlsberg-Tetley stops brewing at Alloa, giving it the chance to further emphasise its
Scottishness.
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