Camra beer drinkers welcome Marston’s rescue of Brains pubs as CEO Ralph Findlay hails “vote of confidence”

Pubs giant Marston’s today saved the historic Welsh brewery Brains from a likely Covid collapse by taking on its 156 pubs in a move set to save 1300 jobs.

Marston’s chief executive Ralph Findlay declared the move “a vote of confidence” in the great British pub after the worst year for the sector in peacetime history.

“You have to be positive and, looking beyond Covid, I’m convinced there is a bright future for pubs,"  he said. “People miss them so much that we know they’ll be back when the restrictions ease.”

Wales’s lockdowns have been some of the toughest in the UK, meaning Brains has suffered more than most operators.

Under the deal today, the Brains family will continue to own the pubs but Marston’s will take over the management of the bulk of them on a leasehold basis, mostly on 25 year leases.

The Campaign for Real Ale said: "While we still need to see the detail of this deal, at first glance it appears a positive move.

“We hope this means that Marston’s will continue to run the pubs as beloved locals, securing their future for the communities that use them and the people they employ.”

Findlay pledged to continue with Brains beers and said its tenanted tied pubs would now be able to stock the ales made by the Carlsberg Marston’s Brewing Company as well.

“That’s a huge selection from Young’s to Shipyard to McEwan’s."

The rent bill to Marston’s will be £5.5 million starting from April next year. All profits from the pubs after paying the rent will go to Marston’s.

It is the first major example of a struggling group of pubs being taken during the Covid crisis.

Findlay predicted more could follow. “In the first quarter of 2021 there are going to be more business that struggle because the support is not enough to keep people going. The furlough scheme is great but most pub businesses are now burning cash.”

Marston’s has been relatively healthy thanks to its sale of a majority stake in its brewing operations to Carlsberg earlier in the year. Marston’s retains a 40% stake in the Carlsberg Marston’s Brewing Company and received a £233 million payment from the deal.

“Post the Carlsberg deal, we can ride the crisis out,” said Findlay, “But I don’t think everybody will.”

For the strongest, the sector is a good investment opportunity, he said: "When we come out of the other side of this we will have great opportunities and that is the key thing about this deal. We know people want to come back to pubs.

"When the first lockdown ended, there was all this debate about that people would never come back. Well, no, we traded really well. People did want to come back to pubs and our venues found themselves at the heart of their communities again. They missed us.

“Come the end of April, I think the outlook is good.”

Marston’s has operated in Wales for years and already has 106 pubs there but Findlay said he highly rated the Brains operation. “It’s a great mix of accommodation pubs, food-led pubs country pubs and premium venues. It’s just that Brains has suffered very badly because of the lockdowns.”

Marston’s will continue offering Brains’ beers in them and the Brains brand will continue.

Marston’s currently has 1368 pubs on a managed, franchised and leased basis.