The boss of Thatchers Cider has called on new Prime Minister Liz Truss’s government to provide support for pubs at risk of closure due to rocketing energy bills.
The UK’s second-largest cider maker supplies hospitality venues across the country with cider it has been producing at its Myrtle Farm base in Somerset since 1904.
Managing director Martin Thatcher told BusinessLive many pubs could face having to pay energy costs that are more expensive than their rent.
Mr Thatcher said: “This has come at a particularly bad time because pubs have barely had time to recover from Covid, where they had long periods of time where they were shut. I really hope there is some sort of support for hospitality.
“And of course, for people in general, heating and energy bills are going up so fast that it puts everyone in a very difficult position. I hope there will be a package of measures to support both those groups.”
Last week the British Beer and Pub Association (BBPA) - which includes bosses from six of the UK’s biggest pub and brewing companies - warned thousands of establishments unprotected by a cap on what gas and electricity suppliers charge them could be forced to shut their doors - putting scores of jobs at risk.
Mr Thatcher, the fourth generation of his family to take up the trade, said the firm’s own energy costs had gone up 125% and were likely to further increase.
He added: “Other costs, things like CO2, have gone up a lot more than that, cardboard - so it’s the knock-on effect through the whole supply chain. It makes it very difficult, and many businesses will be finding it very tough at the moment.”
“I think BBPA are right, this is potentially very bad for the hospitality industry and we would support anything that helps pubs and people in hospitality industry to mitigate these increase in cost in fuel and all the knock-on effects of the increase in cost of fuel they’re suffering at the moment, particularly after they’ve had a dreadful time in Covid as well.
“The British pub is such an important part of local communities it’s where people eat, as well as have a drink and maybe eat, but it’s that social interaction, pubs are part of the fabric of Britain and they should be supported.”
In June Thatchers Cider reported increased market share with profit after tax of £11.1m for the financial year to August 31, 2021 - up from £7.2m a year earlier - despite national lockdowns restrictions on the hospitality sector.
Mr Thatcher said despite the company’s previous navigation of difficult economic circumstances, it was “always difficult to predict the future”.
Mr Thatcher said: “Who would have predicted after Covid we would be in this position? Who would have predicted Covid? As a business we’ve always got to be really focused on what's coming next.
“One of our principles is ‘change is inevitable’ - there is no other time in the last 20 to 30 years where that has been more relevant. You have to keep changing to meet the circumstances. That’s really important and it always comes back to having a brilliant team who can do that.”
Read next:
'Devastating' numbers of pub closures as costs spiral
New prime minister Liz Truss 'must not forget South West businesses' - region reacts
Pottery brand Cornishware expands Somerset site, creating five jobs
Like this story? Why not sign up to get the latest South West business news straight to your inbox.
