The drinks group behind Bristol craft brewery and pub chain Butcombe plans to make it the leading provider of premium accommodation in the South of England, it said this week.
At the same time, Jersey-based Liberation Group is to invest in Butcombe’s brewery in Wrington to increase capacity for next year following record sales over the past few months.
Liberation, which bought Butcombe six years ago, has made a number of other acquisitions since to build a chain of mainly pubs with bedrooms across the South and West of England.
The latest – involving London-based Cirrus Inns, which was acquired last December – means Butcombe now operates a 137-strong portfolio of inns.
In its half-year trading update, Liberation said occupancy rates in these venues had consistently been in excess of 80% as it exploited the gap in the market for high-end accommodation, quality food and drink and ‘incredible’ hospitality, all under one roof.
The group said its accommodation business had grown from less than 100 rooms in 2019 to more than 400. It had now identified opportunities to add a further 300 rooms within its existing estate through further investment in rooms and pods, which it will start later this year.
Liberation Group CEO Jonathan Lawson, pictured, said there had been “an encouraging” start to the current financial year in both its pubs and drinks businesses.
This had built on a solid start to the year and then accelerated in the second quarter, taking advantage of good weather in June that benefited its pub estate, where more than half its covers are outside.
He added: “Increasingly, we see the group’s integrated model as a significant strength in the market, which enables us to exploit sales opportunities, but to also leverage the scale of the group and minimise exposure to inflation that others may experience.
“We have been particularly encouraged by the strong demand for our accommodation, which has seen occupancy levels consistently exceed 80%, even outside holiday weeks and bank holidays.
“This is a reflection of our broad appeal for both leisure and business users and a rapidly growing events business that we view as a significant opportunity for growth.
“Our guests know what to expect when they book with us – premium, stylish and comfortable accommodation, locally sourced, quality food and award-winning beer.”
He said having navigated a “potentially difficult” first quarter, which included the integration of the Cirrus Inns chain and an unseasonably cold Easter, momentum was building in its existing business and the new pubs.
“This in turn has enabled us to view the rest of the year with some confidence, despite the obvious uncertainty for our customers caused by rising interest rates,” he added.
The planned investment in Butcombe’s brewery follows a “very strong sales performance” from the business earlier this year.
“In Butcombe Original we have a top 10 UK On Trade cask ale which anchors from its strength in the South West and has expanded its reach via our growing pub estate,” he said.
“Our new innovative range of keg ales and lagers are positioned perfectly for the current market and we have been particularly excited by the reaction to our latest Pale Ale Tall Tales which we believe will quickly establish itself as one of the fastest growing beers and brands in the South of England.”
Butcombe was launched in 1978 by ex-Courage Western director Simon Whitmore. Having run the Courage Brewery in Bristol, he decided to produce his own beer on a vastly smaller scale in converted farm buildings near the village of Butcombe.
Its Bristol pubs include The Cottage Inn at Baltic Wharf, The Ostrich on Lower Guinea Street and The Whitmore Tap on Whiteladies Road, named after Mr Whitmore, who died in 2012.
Its range of beers include Original Bitter, Underfall Lager, Rarebreed Pale Ale, Golden Ale and its award-winning alcohol-free Goram IPA Zero.
