Sod the slowdown, lets go and have some beer 99p

Well as Wetherspoons starts selling drink from 99p and meals from £2.99,  so we can all enjoy a few drinks during this downturn.

99p pint draws drinkers to Wetherspoons

JD Wetherspoon today reported a surge in sales after the pub chain slashed the price of a pint of beer to 99p.

The company, which has more than 700 pubs, said like-for-like sales in the last two weeks of trading were showing increases of 6.4%, compared with a rise of 2.6% across the first 12 weeks of its second-quarter financial period.

Wetherspoon announced this month that it was turning the clock back to 1989, the last time draught beer was available for less than £1.

The offer, which includes Greene King IPA and San Miguel lager, has been criticised in some quarters amid fears it could fuel irresponsible drinking and force many traditional pubs to close.

Wetherspoon said it was trying to help those caught in the economic slump.

Chairman Tim Martin said: “We are probably the biggest pubs company for students and pensioners, and those two groups in particular have been very keen.

“People also know that they can buy a lot cheaper in Calais or in supermarkets, so it’s a question of whether they come to the pub or not.”

Despite the recent strong trading, Wetherspoon dealt a blow to shareholders today by revealing that it intended to cancel future dividend payments.

With a $140m (£95.3m) debt facility due for renewal in September, Wetherspoon said it would also reduce capital expenditure on new openings.

It said: “In normal conditions, a refinancing of the private placement on attractive terms could be relied upon, given our financial performance. “However, in the present economic climate, a refinancing cannot be taken for granted and the board therefore feels that the measures described are prudent in the circumstances.”

sourced from The Guardian

Health group angered by 99p pint

A pub chain is cutting the price of a pint to 99p to cheer cash-strapped drinkers – but the move has sparked criticism from an alcohol charity.

JD Wetherspoon, which operates 713 pubs across the UK, is offering “indefinite” reductions on some beer, bottled lager, wine and spirits, plus £2.99 meals.

Health campaigners fear other pub chains could follow.

Alcohol Concern says pricing drinks at 1989 levels could cause more people to drink too much and end up in hospital.

Nicolay Sorensen, from the charity, said prices across the industry were already 65% lower in real terms than in 1980.

“The number of alcohol-related hospital admissions is continuing to rise at an astonishing rate,” he said, adding that treating drink-related illnesses costs the NHS £2.7bn per year.

He said that by selling beer at 99p per pint, pubs were not acting responsibly.

We are trying to stay in business, keep jobs in our sector and compete in a very competitive market Mark Hastings British Beer and Pub Association “The drinks industry isn’t able to regulate itself responsibly and it’s for the government to take action.”

But Mark Hastings, of the British Beer and Pub Association, said the 99p pint only applied to one brand of beer – Greene King IPA – in one chain of bars.

Customers could stay at home and drink beer from supermarkets much more cheaply, whereas pubs offered a more responsible environment, he said.

“We are trying to stay in business, keep jobs in our sector and compete in a very competitive market,” said Mr Hastings.

He said that with pubs closing at a rate of five per day, the sector had already lost 44,000 jobs.

Wetherspoon’s chief executive John Hutson said the company was helping people in the face of the economic downturn.

“We believe that our new food and drink prices will allow people to enjoy a visit to a Wetherspoon pub without it costing them too much,” he said.

sourced from The BBC