26th Mar 2007 10:15
Greene King PLC26 March 2007 26 March 2007 GREENE KING PLC FOCUSSING ON CUSTOMERS: MANAGED PUB REORGANISATION & BOARD CHANGES Greene King today announces that it will be reorganising its managed houseoperations into two divisions, to reflect the different trading styles of thepubs within the estate. The two new divisions will be 'Local Pubs', made up of510 predominantly community and town-local pubs, and 'Destination Pubs', made upof the 280 more branded, food-led pubs and hotels. The reorganisation willbuild on the success of Greene King's managed house business by furthertailoring the support given to the estate, in recognition of the differing needsof destination and local pubs. The Destination Pubs division will focus on the development and continuedroll-out of centrally-developed, marketed and managed brands and formats, inlarger destination-orientated sites. These sites will typically derive a highproportion of their revenue from food sales; many also have letting rooms. Inthe Local Pubs division, by contrast, pub managers will be given greaterautonomy and flexibility to match the individual pub offer to local market needsand opportunities. In the main, these pubs will be drinks-led, though with agrowing food offer, and mostly in community and town-local locations. Greene King has grown significantly both the quality and the size of its managedestate in recent years, in particular through the acquisitions of the Laurelneighbourhood estate and Hardys & Hansons. Over the last five years, PubCompany's sales have risen by two-thirds, and its trading profits have more thandoubled. This reorganisation will support the ongoing growth of the managed pubestate and ensure that the entire organisation can remain close to the customer. The re-organisation is being achieved with no increase in overheads, willinvolve minimal disruption and will be complete by the end of April. It willhave no impact on Greene King's other divisions (Pub Partners, Brewing Companyand Belhaven). As part of the reorganisation and following three successful years running ourmanaged houses business, Mark Angela will be leaving the company and steppingdown from the board on 16 April 2007. Jonathan Lawson (36) has been appointed managing director of Local Pubs and willbecome a member of the board. Jonathan has been retail operations director ofSainsbury's Convenience for the last three years, where he was responsible fordelivering significant sales and profitability growth for the Sainsbury's Localand Central formats. Prior to this he held other retail positions atSainsbury's, and at Asda and Marks & Spencer. Jonathan will start at the companyand join the board on the 10th April. Jonathan Webster (45) will become managing director of Destination Pubs.Jonathan has over twenty years of experience in the pub sector. He was chiefexecutive of Hardys & Hansons plc when it was acquired by Greene King last yearand has led its successful integration into the Greene King group. Both Jonathan Lawson and Jonathan Webster will report to the chief executive,Rooney Anand. Rooney Anand commented: 'Over the last few years, we have grown both the quality and the size of ourmanaged estate and now have an enviable portfolio of pubs. Today'sreorganisation represents an important step in ensuring this growth momentum cancontinue well into the future. 'Mark Angela has played a key role in the recent development of our managedpubs, particularly with the successful integration of Laurel, and he leaves withour very best wishes. 'I am delighted to welcome Jonathan Lawson to Greene King. The flair and localentrepreneurialism he brought to Sainsbury's convenience stores combined withhis strong retail skills will bring a fresh and exciting perspective to ourLocal Pubs. At the same time, we have been impressed from the outset with theHardys & Hansons team, especially their food development and operational skills,and I am therefore delighted that Jonathan Webster will be staying with us tolead Destination Pubs.' The company confirms that that there are no further matters requiring disclosurein relation to paragraphs 9.6.13 (2) to (6) of the FSA Listing Rules. For further information: Greene King plc Rooney Anand, Chief Executive Tel: 01284 763222Financial Dynamics Ben Foster Tel: 020 7831 3113 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Greene King