Drinkers turn cautious with cash

PUB drinkers are becoming more careful with their money as the outlook for the economy remains cloudy, Wolverhampton & Dudley Breweries has warned. The Midlands-based brewer and pub operator said the outlook for consumer spending had become 'more cautious' in recent months.

The company, which owns the Pitcher & Piano, Bostin' Locals and Service That Suits Me chains, added the retail market was less optimistic than last year. Despite this, the company said trading in the 24-weeks to 19 March was in line with expectations.

Like-for-like sales were 3.1% ahead of last year in Pathfinder Pubs and 3.2% ahead in its leased and tenanted business, The Union Pub Company.

In its brewing business, good progress in the free trade sector and new distribution to other pub companies drove strong turnover and volumes. The pre-half-year trading statement said the interim figures would benefit from Easter falling early this year.

Wolves, which also brews Banks's, Hanson's and Mansfield beers in Wolverhampton and Marston's Pedigree ale in Burton-on-Trent, said it expects to complete the integration of its Burtonwood acquisition ahead of schedule.

Chief executive Ralph Findlay said: 'The outlook for consumer spending has generally become more cautious in recent months. Against that background our high quality pubs and beer business have continued to perform well.'

The shares were up 11p in early morning trading to £10.93.