William Simpson
Dutch brewer Heineken is working on “transforming tired pubs” across the UK with a nearly $50 million investment aimed at providing relief to local people as the UK recovers from 41-year high inflation.
The investment of £39 million (almost US$50 million) is being made through Heineken star pubs in the UK, a network of 2,400 leased bars. Heineken said the money will go to 612 establishments, including 62 closed bars that will reopen this year. Some of these soon-to-be-reopened pubs have been closed by more than four yearsreported the BBC, a partner of CBS News.
The company said the investment is a demonstration of “confidence in the resilience of the great British venue in the face of uncertainty”.
“With working from home increasingly common and people looking to save money on travel, the major renovations will focus on transforming tired pubs in suburban areas into premium venues,” the company said. “The renovations have been designed to broaden the use and appeal of each pub, giving people additional reasons to visit.”
Heineken says the work will create more than 1,000 new jobs as the UK faces a cost of living crisis.
According to British Beer and Pub Association, the number of pubs across the UK has been slowly declining for decades, but the pandemic and energy crisis have amplified the situation. Since 2000, around 15,450 bars have closed, while the cost of pints of beer has only increased, association data shows.
Among the planned renovation changes are “state-of-the-art” equipment to offer customers “consistently perfect paints,” dividing screens and aesthetic changes that the company says “will have a classic, elegant feel, providing longevity.”
They also plan to implement more environmentally friendly changes, including energy-efficient heating, insulation and lighting controls that Heineken says will reduce energy use by 15%.
“People are looking for maximum value when visiting your venue. They want great atmosphere, food and drink, as well as activities that give them an extra reason to go out, such as sports exhibitions and entertainment,” said Lawson Mountstevens, managing director at Star Pubs. he said. “Creating fantastic venues that can accommodate a variety of occasions addresses this need and helps pubs fulfill their role as vital third spaces where communities can come together.”
The move comes as the United Kingdom faces problems with cost of living in the last years. According to Parliament, costs increased dramatically in 2021 and 2022, triggering a 41-year inflation peak in October 2022 of 11.1%. The annual inflation rate fell substantially to 3.2% in March and is expected to continue to fall throughout the year as energy prices also fall.
However, although the inflation rate has decreased, global conflicts and other issues have caused food prices to rise over the past two years. Even with pressures easing, Parliament said, food and non-alcoholic drink prices were 4% higher this March than last year, with global food prices rising almost 24% between March 2022 and 2024.
In a survey carried out by the Office for National Statistics, almost half of UK adults They say their cost of living has increased this year, with food prices being the main reason.
BBPA chief executive Emma McClarkin told the BBC that Heineken’s plans are “a demonstration of confidence to invest in Britain’s beer and pub sector, which will help deliver much-needed growth in local economies in the whole of the United Kingdom.”
“This could be turbocharged with a longer-term and more supportive fiscal and regulatory framework that this and the next government need to implement to unlock more growth and investment opportunities,” she said.
Li Cohen
