New chief executive is confirmed by SA Brain
BREWING to hospitality firm SA Brain has confirmed the appointment of industry heavyweight Alistair Darby as its new chief executive.
Mr Darby will take over the role from current chief executive Scott Waddington on July 31.
He brings with him a wealth of experience in the brewing and hospitality industry, having held senior positions at a number of major companies in the sector, including managing director of Camerons Brewery in Hartlepool, chief operating officer of Marston’s and chief executive of managed pub and restaurant company Mitchells & Butlers.
He will be tasked with the continued development and implementation of the firm’s business plan.
And his appointment comes as the family-owned business has reported a £12m fall in revenues and operating losses of nearly £4m for its last financial year to end of September, 2017.
During the year it saw the scheduled loss of a £13m contract brewing deal with Heineken. And with the significant impact of an expectional one-off cost for the acquisition of its new head offices and brewing site, it posted operating losses of £3.9m. Revenues were down £12m to £123m.
A highlight of the year was the opening of 13 new Coffee#1 stores, which helped realise increased sales in the division of over £4m in a year when disposals of non-viable pubs resulted in reduced turnover in its pub estate.
Gross profit for the year was £15.2m, with the decline in contract brewing accounting for 65% of a £2.6m gross profit reduction, with the remainder being attributable to challenging trading conditions and increasing cost pressures.
However, in the current financial year, where drink sales are continuing to outperform food sales, it is expected to move back into operating profitability.
While the cold spell early this year affected its pub business, it has been buoyed by the current heatwave.
While still under review as a possible future option to sell, or partsell a stake in, Coffee#1 now accounts for around 20% of total group revenues.
And it is on target to reach the 100th outlet mark next year.
The group will realise future revenues from its stake in the Central Quay regeneration project, which covers its eight-acre Crawshay Street site in the centre of Cardiff.
Central Quay, which is being developed by Cardiff-based property development firm Rightacres, could eventually see, subject to planning, around 2.5 million sq ft of new office, leisure and retail space built on the existing Brains site and adjoining land owned by Network Rail and a smaller BMW car dealership site.
Last month SA Brain head office staff relocated to its new Dragon Brewery site in Cardiff Bay.
It is scheduled to relocate its brewing operation from Crawshay Street in the first quarter of 2019.
SA Brain chairman John Rhys said: “It is pleasing to see the realisation of a number of long-term projects over the course of the last 18 months and I am confident that they will create a sound platform for the continued success of the business.
“I am delighted that we have been able to attract such a high-calibre individual as Alistair Darby to lead our independent family company. Working together with Alistair to take Brains forward into a new era for the company is an exciting prospect.
“And behalf of the family and company, I would like to thank Scott for the significant contribution he has made to our business since he joined us in 2001.
“I have very much enjoyed working with him and wish him every success in his future ventures.”
Mr Darby said: “I am very proud and honoured to be given the opportunity to head up SA Brain, an iconic Welsh company and brand. I am looking forward enormously to working with the Brains family and management team, building on the excellent legacy created by Scott”.
Mr Waddington still stay on for a short handover period, having announced in April he would be standing down after 17 years in the role.