Whitbread

Whitbread PLC
Public limited company
Traded as LSE: WTB
FTSE 100 Component
Industry Leisure
Hospitality
Founded 1742 (1742)
London, England
Founder Samuel Whitbread
Headquarters Houghton Regis, England, UK
Area served
 China, Dubai, Europe, India, Republic of Ireland, Russia, United Kingdom
Key people
 Richard Baker (Chairman)
Alison Brittain (CEO)
Revenue Increase £3.106 billion (2017)[1]
Increase £552.7 million (2017)[1]
Increase £415.9 million (2017)[1]
Number of employees
 50,000 (2018)[2]
Divisions Beefeater
Brewers Fayre
Costa Coffee
Premier Inn
Table Table
Website www.whitbread.co.uk

Whitbread PLC is a British multinational hotel, coffee shop and restaurant company headquartered in Houghton Regis, Bedfordshire, United Kingdom. The company has its origins in brewing.

Its largest division is Premier Inn, which is the largest hotel brand in the UK with over 750 hotels and 65,000 rooms. Its Costa Coffee chain (set to be acquired by The Coca-Cola Company in a deal announced in August 2018) has 3,401 shops across 31 countries and is the world's second-largest international coffee shop chain.[3] Its other brands include the restaurant chains Beefeater, Brewers Fayre and Table Table.[4]

Whitbread is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

History

The Chiswell Street brewery in 1792.

The business was formed in 1742 when Samuel Whitbread formed a partnership with Godfrey and Thomas Shewell and acquired a small brewery at the junction of Old Street and Upper Whitecross Street and another brewhouse for pale and amber beers in Brick Lane, Spitalfields.[5] Godfrey Shewell withdrew from the partnership as Thomas Shewell and Samuel Whitbread bought the large site of the derelict King's Head brewery in Chiswell Street in 1750.[5] The new brewery was for the production of porter, and was renamed the Hind Brewery after the Whitbread family coat of arms.[5]

From the outset, Whitbread was the leading financial partner, and solely responsible for management, and in 1761, Whitbread acquired Shewell's share of the business for £30,000.[5] It was the largest brewery in the world by the 1780s.[6] In 1796 the company produced 202,000 barrels of porter.[5] The firm struggled after the death of Samuel Whitbread Sr, and saw ownership transfer to his son, also called Samuel Whitbread.[6] The company adopted the name Whitbread & Co Ltd in 1799.[7]

Whitbread brewed over 575,000 barrels in 1917.[8]

The company was first listed on the London Stock Exchange in 1948.[6] Between 1961 and 1971, Whitbread's output increased from 2.1 to 7.4 million hectolitres and it became Britain's third-largest brewer by output.[9] In 1972, Whitbread became the initiating sponsor of the Whitbread Round the World Race (now called the Volvo Ocean Race), a sailing yacht race around the world held every three years. Whitbread sponsored the race until 2001.[10]

Whitbread acquired a 20% stake in TVS for £6.5M from European ferries in April 1984.[11] Whitbread sold its liquor division (including Beefeater Gin) to Allied Lyons in 1989.[12] Whitbread decided in 2001 to sell all its breweries and brewing interests (Whitbread Beer Company) to Interbrew, now known as InBev.[7] Whitbread-branded alcoholic beverages are still available in the UK, such as canned Whitbread bitter, but these are not produced by InBev, merely produced under licence by other producers. InBev controls the use of the Whitbread brand, and the hind's head logo, for use on beverages. In 2002 Whitbread sold its pub estate, known as the Laurel Pub Company, to Enterprise Inns.[13] The Whitbread & Co brewery building at 52 Chiswell Street in London still survives, although beer ceased to be brewed there in 1976[6] and it is now a conference and events venue. Still named "The Brewery", it was part of the Earls Court and Olympia Group from 2005 to 2012, where it was subsequently sold to a private investor.[14]

In 2005, it moved its core operations from CityPoint in central London, to Oakley House in Luton,[15] and then, in 2006, to larger offices at Whitbread Court in Dunstable.[16] In 2006, it went on to sell 239 of its 271 Beefeater sites to Mitchells & Butlers.[17] In January 2010, Whitbread introduced a new corporate logo, and replaced the tagline "welcome with a smile" with "Eat, Sleep and Drink".[18]

In 2013, as part of the 2013 horse meat scandal, DNA tests ordered by Whitbread revealed that horsemeat was present in some meat products sold in outlets owned by the company, at the time Britain's biggest hotel group.[19][20] On 26 February 2013 Whitbread vowed to remedy the unacceptable situation.[21]

In 2018, Whitbread faced pressure from two of its largest shareholders, hedge fund Sachem Head and activist group Elliot Advisers, to break itself up by splitting off the Costa Coffee chain, the theory being the individual businesses would be worth up to 40% more than the current market capital value.[22] On 25 April 2018, Whitbread announced its intention to demerge Costa.[23] However, on 31 August 2018, it was announced that Coca-Cola had agreed to acquire Costa Coffee from Whitbread for £3.9bn.[24]

Current operations

Whitbread's principal current operations are:

A Premier Inn in Crawley

Premier Inn

Premier Inn is the UK's largest budget hotel chain, with over 750 hotels.[25]

Costa Coffee

A branch of Costa in Sutton, Greater London

Costa Coffee was founded in London in 1971 by the brothers Sergio and Bruno Costa as a wholesale operation supplying roasted coffee to caterers and specialist Italian coffee shops. Acquired by Whitbread in 1995, it has since grown to over 2,861 stores across 30 countries.[26] By the end of 2010, the company had overtaken Starbucks in the UK, reaching a 37.6% market share measured by revenues.[27] The business has 2,300 UK restaurants, over 6,000 Costa Express vending facilities and a further 1,334 outlets overseas.[28]

In August 2018 Whitbread announced that it would sell Costa Coffee to The Coca-Cola Company in a deal worth £3.9bn.[29]

Table Table

Table Table is a UK restaurant brand. They started as converted Brewers Fayre restaurants. The brand was originally set up in 2006 unnamed; the name Table Table was launched in May 2008. There are around 100 sites in the UK.[30]

Beefeater

Beefeater was launched in 1974. The chain underwent a huge revamp in the early 2000s. It then proceeded to change its name to "Beefeater Grill" for a period but in 2015 reverted to just "Beefeater". Beefeater has 140 restaurants across the UK.[31]

Brewers Fayre

Brewer's Fayre, Royal Quay, North Shields

Brewers Fayre is a pub-restaurant brand which was created in 1979. The pubs are designed to look and feel like traditional local pubs but with a particularly strong family presence. There are around 145 pubs across the country.[32]

Whitbread Inns

The Whitbread Inns brand of restaurants was created by Whitbread in 2014. In January 2016 there were 13 pubs (all of which were Table Table) across central and southern England.[33]

Former operations

Whitbread's former operations include:

  • Brewster's, a brand created in 1999. The emphasis was on families and most sites had been built as Brewers Fayre, this was to give Brewers Fayre a more adult feel. All sites had multi level play areas (The Fun Factory) and an outdoor children's play area. The brand was phased out during 2005 with all sites returned to Brewers Fayre, however, all sites kept their indoor Fun Factories.[34]
  • Taybarns, an all-you-can-eat American buffet-style restaurant. There were six sites in England and one (the very first site at Swansea) in Wales.[35]
  • Britvic, a large UK manufacturer of soft drinks, producing brands such as J2O, Robinson's and Tango as well as Pepsi in the UK and Ireland.[36]
  • Marriott hotels and clubs in the UK, sold to brand owner Marriott Corporation.[37]
  • TGI Friday's - Whitbread originally held the UK franchise rights to the American restaurant chain TGI Friday's. The restaurants are known for their "over the top" American style and are popular with teenagers for birthday parties. It is also noted for its cocktails including a top-selling Long Island Iced Tea. On 17 January 2007 Whitbread announced that the franchise rights for TGI Friday's were being sold to a joint venture between Carlson Restaurants Worldwide Inc and ABN AMRO Capital for £70.4m.[38]
  • Pizza Hut UK, sold to brand owner Yum![39]
  • David Lloyd Leisure - Whitbread ran more than 50 David Lloyd Leisure (DLL) clubs in the UK and Ireland with a further number in Spain, the Netherlands and Belgium. DLL is Britain's biggest tennis operator and manages more than 500 tennis courts. On 4 July 2007, Whitbread announced that it had conditionally agreed to sell the David Lloyd Leisure chain to Versailles Bidco Limited for £925 million. Whitbread will initially use the proceeds from its sale to pay off debt.[40]
  • Hogshead, a group of town-centre pubs, similar to Wetherspoons, became part of the Laurel Pub Company in 2001.[41]
  • Threshers, a chain of off licences.[42]
  • Germany: Churasco, owned since 1990, and Maredo, owned since 1994; in 1999 the Churasco restaurants had been transformed into Maredo branded ones; Maredo was sold in 2005.[43]
Frankfurt Premier Inn
St Albans Costa
A Premier Inn in Basingstoke

References

  1. 1 2 3 "Annual Report 2017" (PDF). Whitbread PLC. Retrieved 17 March 2018.
  2. ↑ "Our brands". Whitbread. Retrieved 17 March 2018.
  3. ↑ "Annual Report 2014" (PDF). Retrieved 31 January 2015.
  4. ↑ "Our Brands". Whitbread PLC. Retrieved 3 November 2016.
  5. 1 2 3 4 5 "Whitbread, Samuel". Oxford Dictionary of National Biography. Retrieved 31 January 2015.
  6. 1 2 3 4 Jack S. Blocker; David M. Fahey; Ian R. Tyrrell (2003). Alcohol and Temperance in Modern History: An International Encyclopedia. ABC-CLIO. pp. 656–657. ISBN 978-1-57607-833-4.
  7. 1 2 "History of Whitbread". Whitbread.co.uk. Retrieved 2014-04-11.
  8. ↑ http://barclayperkins.blogspot.co.uk/2018/01/kidd-beers-in-early-1917.html?m=1
  9. ↑ "Alcohol and Temperance in Modern History". google.com. Retrieved 1 February 2015.
  10. ↑ "Drastic early days of broken boats and high drama in Whitbread Round the World Race". Yachting World. 12 November 2014. Retrieved 15 April 2017.
  11. ↑ Whitbread buys £6m TVS stake. By Derek Harris Commercial Editor. The Times, Thursday, Apr 12, 1984; pg. 18
  12. ↑ Ap (1989-12-23). "COMPANY NEWS; Allied-Lyons Is Buying Whitbread Liquor Unit". The New York Times. ISSN 0362-4331. Retrieved 2018-07-21.
  13. ↑ Enterprise Inns buys 1,860 pubs to become UK's top landlord
  14. ↑ Whitbread sells historic brewery Archived 12 June 2011 at the Wayback Machine.
  15. ↑ "Whitbread - market intelligence". Ukbusinesspark.co.uk. Archived from the original on 22 February 2014. Retrieved 2014-04-11.
  16. ↑ "Whitbread sells group headquarters". Business Milton Keynes. 1 October 2006. Retrieved 14 April 2017.
  17. ↑ "Business | Beefeater sites bought by M&B". BBC News. 2006-07-21. Retrieved 2014-04-11.
  18. ↑ "Whitbread Case Study" (PDF). Archived from the original (PDF) on 4 March 2012.
  19. ↑ "BBC News - Horsemeat scandal: Supermarkets 'share anger and outrage'". Bbc.co.uk. 2013-02-15. Retrieved 2014-04-11.
  20. ↑ Reuters (15 February 2013). "Compass and Whitbread caught up in horse meat scandal". Telegraph.co.uk. Retrieved 1 February 2015.
  21. ↑ "Whitbread makes food pledge after horsemeat scandal". the Guardian. Retrieved 1 February 2015.
  22. ↑ "Business Sale Report - Will Costa Coffee chain be up for sale soon". business-sale.com. 2018-04-22. Retrieved 2018-04-22.
  23. ↑ "Whitbread Group Structure Update". whitbread.co.uk. 2018-04-25. Retrieved 2018-04-25.
  24. ↑ "Coca-Cola to buy Costa chain for £3.9bn". BBC News. Retrieved 31 August 2018.
  25. ↑ "Premier Inn opens 600th UK hotel". Retrieved 31 January 2015.
  26. ↑ "Catering & Hospitality News". Retrieved 1 February 2015.
  27. ↑ Caterer and Hotelkeeper 14 January 2011
  28. ↑ Have we reached peak Costa Coffee?
  29. ↑ "Coca-Cola to buy Costa chain for £3.9bn".
  30. ↑ "Table Table". Archived from the original on 6 February 2015. Retrieved 31 January 2015.
  31. ↑ "Beefeater". Archived from the original on 31 January 2015. Retrieved 31 January 2015.
  32. ↑ "Brewers Fayre". Archived from the original on 6 February 2015. Retrieved 31 January 2015.
  33. ↑ "Whitbread Inns". Retrieved 16 January 2016.
  34. ↑ "Rise of the all-you-can-eat restaurant". newsvote.bbc.co.uk. BBC. Retrieved 21 June 2016.
  35. ↑ "Taybarns". Archived from the original on 6 February 2015. Retrieved 31 January 2015.
  36. ↑ "Britvic IPO to value drinks group at up to £537m". FT.com. 25 November 2005. Retrieved 31 January 2015.
  37. ↑ "When Alan Parker moved Whitbread from beer to hotels no-one got it, they do now". The Telegraph. 23 October 2010. Retrieved 31 January 2015.
  38. ↑ Bill, Tom (2007-01-17). "Whitbread sells TGI Friday's to joint venture - Caterer and Hotelkeeper". Caterersearch.com. Retrieved 2014-04-11.
  39. ↑ "Pizza Hut restaurants sold to investment group". The Guardian. 9 November 2012. Retrieved 31 January 2015.
  40. ↑ "Sale of David Lloyd Leisure". Whitbread plc. 4 June 2007. URL accessed 4 June 2007. Archived 29 May 2007 at the Wayback Machine.
  41. ↑ "Luminar eyes Hogshead pubs deal". The Telegraph. 15 April 2001. Retrieved 31 January 2015.
  42. ↑ "Former owners Punch Taverns and Whitbread face Threshers liability". The Telegraph. 16 November 2009. Retrieved 31 January 2015.
  43. ↑ "Milestones". Maredo. Archived from the original on 19 April 2014. Retrieved 31 January 2015.
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