Summer Fayre: Beer, Beyoncé and beats

Susannah Streeter: Hello, and welcome to ‘Switch Your Money On.’ I’m Susannah Streeter, the Head of Money and Markets here at HL.

Sarah Coles: And I’m Sarah Coles, the Head of Personal Finance.

Susannah Streeter: And you have another title as well – don’t you Sarah – because, a few days ago, I was ‘Headline Money Expert of the Year,’ and I’m delighted to say – in a relay race of sorts – I have handed the very shiny baton on to Sarah, who has scooped the title this year, as voted by Financial Journalists at an illustrious awards do in Central London – so awesome result, Sarah.

Sarah Coles: Oh, thank you – I’m now an expert of everything, obviously, so you can literally ask me anything!

Susannah Streeter: Well, I did arrive just as the celebrations were getting going ‘cause I’d been at a Defence Conference, and I arrived to see Sarah brandishing, not just one, but two awards above her head like Minnie Mouse ears for our research on the HL Savings and Resilience Barometer, which we were telling you about last week – so double celebrations.

Sarah Coles: Yes – and, after the gloomy aura of the last podcast, we’re gonna be much more positive this time round.

Susannah Streeter: It’s always great to have some good news, but it is worth mentioning that it hasn’t all been sweetness and light over the past week or so. Some of my focus has been on what’s happening in China – we’ve had successive sets of data out showing the slowdown in recovery is continuing. While inflation shows signs of stubbornness elsewhere in the world, disinflationary forces are at work in China, which risk tipping the world’s second largest economy into a deflation scenario. There will be some hope that lower Chinese prices will have boosted exports, but this has not yet been evident – instead, they have been shrinking faster than expected. However, expectations that authorities will move to inject more stimulus into the economy have risen, which has averted a sharper move on markets. Interestingly, in China, a vast fall in pork prices are partly why overall consumer prices have flatlined. It’s a big contrast to here in the UK, where pork prices have risen sharply, although Morrisons’ boss says he’s hopeful prices will start to come down – but, for now, it doesn’t look like you’ll bag a bargain, Sarah, when it comes to a pulled pork bun at a festival this summer!

Sarah Coles: But then, when it comes to festivals, there’s very little that can be described as ‘Cheap.’ So, when we booked this year’s festivals, we were really shocked by how much accommodation cost – and how ticket prices had risen – and, actually, how many events were sold out. So, it was actually more than when we were booking this time last year, so it could be that the age of ‘Going out’ has returned, and that’s the focus of this episode of the podcast, which we’re calling ‘Summer Fayre.’

Susannah Streeter: Yes – we’ll be speaking to Charlie Luckin, Managing Director of ‘Signal Brewery,’ which operates a taproom and supplies events too – so it’s really tied into the summer boom in hospitality and events. So, Charlie, it’s really good for you to make time in such a busy month of the year – how is the summer shaping up for you?

Charlie Luckin: Thanks for having me on. Yes, we are absolutely manic at the moment, and we’re struggling to keep up with demand.

Sarah Coles: It’ll be great to delve a bit deeper later in the podcast. We’ll also be speaking to Sophie Lund-Yates – our Lead Equity Analyst – about how companies who rely on us going out are faring, and Emma Wall – our Head of Investment Research and Analysis – will be taking the temperature from the point of view of ‘Funds.’ The Hospitality and Events industries have had a bit of a rollercoaster ride over the past few years. So, before COVID, it was actually a boom time for many. Take festivals, for example – in 2019 – the year before COVID – there were almost 1,000 music festivals across the UK, contributing 1.76 billion to the economy and attracting 5.2 million people. It was a fast-growing industry too. Since 2015, total spend at festivals – and the box office – had risen by more than 150 per cent – but, of course, all that fell off a cliff with the arrival of COVID.

Susannah Streeter: Yes, that was rock bottom – but, since then, we have been getting closer to normal. In the year to March 2022, attendance was back to 80 per cent of its pre-COVID level and, among those aged 16 to 24, it had bounced back entirely. ‘Eventbrite’ says searches for summer events were up a third this spring.

Sarah Coles: Yes – and, while music’s a massive part of this, it’s far from the only kind of festival experience on offer – so they cover everything from comedy to wellness and books – and, of course, one of the most popular options is food. So, 64 per cent of people say they go to wine and food festivals.

Susannah Streeter: That, certainly, would be one for me – but we’re not just going to more festivals – we’re spending more on them too. Despite the fact we’re having to devote so much of our income to making ends meet, 81 per cent of festival-goers expect to spend more on this summer’s events than last summer’s. Some of this, of course, is because of the impact of inflation. Recreation and Culture were the biggest contributor to inflation during April and May. Ticket prices for Glastonbury, for example, were up 20 per cent in a year. Now, this owes an awful lot to the fact it costs more to put on a festival. Two years of festival cancellations meant staff moved on, and replacing them has proven very expensive. Before the pandemic, the starting rate for someone with experience was £80-a-day. This year, ‘Latitude’ was looking for staff with no experience for £145-a-day. Meanwhile, there are fuel costs to contend with, especially after the ban on red diesel.

Sarah Coles: And, of course, we’ve also seen inflation on those things we might spend money on around festivals, like hotels and restaurants. So, that’s a phenomenon anyone who’s been to the ‘Hay Literary Festival’ – or the ‘Edinburgh Fringe Festival’ – is really familiar with. Actually, in Sweden, Beyoncé’s tour was said to have boosted demand for hotels so dramatically that it actually increased inflation in May!

Susannah Streeter: But, even before the ‘Beyoncé Bounce’ has hit the UK, we’re seeing serious inflation among hotels – fast food outlets – restaurants and cafés. The cost of running these businesses has risen dramatically with the rise in energy and food costs, and a chronic shortage of staff, which has pushed up wages. A lack of work during the pandemic pushed some staff into other sectors and persuaded some to stop working all together, leaving a void. Vacancies are actually up almost 50 per cent from their pre-COVID levels.

Sarah Coles: So, hospitality businesses are wrestling with the fact that their costs are rising exponentially, and yet their customers are under so much pressure, they can’t afford to hike prices a penny more than they have to.

Susannah Streeter: Yeah – it could be much worse. I mean, there was always the worry that, in this environment, we’d stop going out and business would dry up, but that hasn’t materialised yet. A study in March revealed that more than half of us are either still eating out as much as we did before the pandemic, or actually doing so more nowadays. We’re feeling the pressure, and we’re looking for discounts and less expensive menu options, but it appears that – after being barred from going out for so long – it means we’re prepared to prioritise spending on these things. ‘Deloitte’s’ survey spending plans each quarter – and this spring… it found that fewer people were planning to cut back on their spending in restaurants and bars than previously.

Sarah Coles: So, what does all this mean for companies operating in the sector? Let’s bring in Sophie Lund-Yates here, who’s been looking at a variety of companies in the Hospitality and Leisure sectors. So, Sophie, I think you’re gonna start a brewer this time.

Sophie Lund-Yates: Hi, Sarah – yes – so it certainly felt fitting to discuss a brewing company this week. When we were first thinking about this episode, the first image that popped into my head was a beer garden – which, potentially, says a lot about me! So, who better to look at than ‘AB InBev,’ who are responsible for the likes of ‘Budweiser,’ ‘Stella,’ and – my personal summer favourite – ‘Corona?’’ Now, ‘AB InBev’s’ got off to a good start in 2023 – first-quarter revenue rose 13.2 per cent on an organic basis, which is a figure that usually ignores things like exchange rate movements and the effect of recent acquisitions or disposals – and underlying operating profit grew 14.9 per cent to $3.5 billion as revenue growth outstripped the rising operating costs.

Sarah Coles: So, is this typical of drinks companies – in general – been doing okay?

Sophie Lund-Yates: So, the Beverage industry has been holding firm in the face of consumers with less cash to spare. ‘AB InBev’s’ volume growth is slim, but it has continued to creep in the right direction for now, and it’ll be important to keep an eye on how this progresses throughout the year. Looking at last year, rising commodity prices kept a lid on how much of the revenue increase fed through to the profit line. If inflation calms this year, that trend should start to look more favourable and, of course, the opposite is also true.

Sarah Coles: And what about those brands? – they must be a valuable commodity too!

Sophie Lund-Yates: Yes – so ‘AB InBev’ is benefitting from premiumisation, so this is just a fancy way of saying people are preferring to go for higher-end options and products – which some of the group’s brands are benefitting from. The brewer also has footholds in less developed markets from Latin America to Sub-Saharan Africa, and means there’s scope for huge volume growth in the years ahead. Last we heard, premiumisation is a trend that’s making its way into these regions too.

Susannah Streeter: So, what would you say is less palatable about the company?

Sophie Lund-Yates: Being frank about it, ‘AB InBev’ is carrying too much debt. At the last count, net debt was 3.5 times cash profit. Some 65 per cent of scheduled debt obligations don’t need repaying for five years or more, and interest payments are very manageable. Nonetheless, we’re keen that ‘ABI’ keeps its foot on the pedal where debt reduction’s concerned. The group has a strong portfolio and a good global footprint, but debt reduction will be the focus for management for now, and that can keep a lid on progress.

Susannah Streeter: Yeah – and we’ve, of course, been talking about summer events and festivals on this podcast! So, you’ve been looking at an events company too – haven’t you – really tied into all of this.

Sophie Lund-Yates: So, certainly – I’ve been looking at ‘Live Nation Entertainment,’ which is a New York-listed entertainment giant. It has a market cap of over $21 billion and is a live event ticketing, sales, and marketing company. As some of our listeners may know, it’s a producer of live music concerts, and it has three main operating segments, which are ‘Concerts,’ ‘Ticketing and Sponsorship,’ and ‘Advertising.’ It has a mixture of owned and operated venues – and, as you can imagine, ‘Live Nation’ had a pretty rough time of it during the pandemic, and investors were definitely spooked, but the valuation has more than recovered now – that normal life and optimism has re-entered the market in this area.

Sarah Coles: The industry, itself, has been criticised for things like ticket pricing issues – has ‘Live Nation’ been affected by that at all?

Sophie Lund-Yates: The group’s under a bit of pressure to provide clearer ticket pricing – I would say – and has told President Biden that it’ll work to remove hidden fees – and I’ll be looking out to see how and if that affects reported numbers. Revenue’s expected to be about $19.2 billion this year with operating profit in the region of $967 million – so that just demonstrates the scale this company has. I’ve also made it this far without talking about Taylor Swift – which I’m quite proud of myself for, if I’m honest! In all seriousness, the scale of this tour – which has been all over the news – just shows the genuine enthusiasm that exists for live entertainment in a post-lockdown world – and I think that represents a long-term opportunity. The main thing to monitor – where ‘Live Nation’ is concerned – is the risks of ups and downs, thanks to that sharp recovery in the valuation this year.

Susannah Streeter: So, from the ‘Beyoncé Bounce’ to the ‘Taylor Trend…’ Sophie, let’s go back to pubs, because you do have another pub-related one for the last one – I am noticing a trend here.

Sophie Lund-Yates: You have caught me out there! So, whereas ‘AB InBev’ definitely has links to pubs, its brands also benefit from people socialising at home, who might pick a case of beer up for a barbecue. I thought it made sense to also take a deeper look at a pure pub company, and I’ve gone with ‘JD Wetherspoon,’ and not just because I’m mildly obsessed with their breakfasts! So – despite the ongoing pressures facing consumers in the Hospitality industry – Wetherspoon’s pubs are trading above pre-pandemic levels. We’ve seen that like-for-like sales were up 12.9 per cent in the year to date and, that said, profits aren’t quite enjoying the same uplift, and that’s because of enormous cost pressures. These challenges are made worse by the fact that – as most of us know… you know, ‘Wetherspoons’ is known for its value-offering, and it’s really fighting to retain that. It’s wanting to keep its price increases below inflation – which is the right move if it wants to keep its customer base onside – but it does seem that prices are going to have to be pushed higher as inflation persists. The extent it will be able to do this – without seeing volumes drop – will be lower than other chains, in my opinion.

Sarah Coles: So, some challenging times ahead. Is it taking any specific steps to improve that profitability level?

Sophie Lund-Yates: Sure – so ‘Wetherspoon’ is looking to sell over 20 pubs too – because it wants to increase their average size and the distance between them. This should help footfall, but the proof will be in the pudding, and a return to cash generation has enabled further upgrades to the estate, and a decent reduction in net debt levels as well. That said, the jury’s still out on when returns to shareholders will return. ‘Wetherspoons’ has a different product – and a strong offering, in my opinion – but the short-term will be governed by how long inflation persists and – as we all know – that’s a very tricky thing to map.

Susannah Streeter: I thought you were gonna say there, ‘The proof will be in the hash browns,’ given how obsessed you are about breakfasts, but we’ll have to wait…

[Over speaking 13:11]

Sophie Lund-Yates: Oh, I missed…

Susannah Streeter: …for the next podcast!

Sophie Lund-Yates: …a trick – I’ve missed a trick there!

Susannah Streeter: Thank you – it is great, Sophie, to be able to talk about some of these hospitality companies with a bit more positivity than the podcast we recorded right bang, slap in the middle of the pandemic. Talking of positive developments, I should remind you that we have an email for you to get in touch with us – it’s podcast@hl.co.uk – and we’d love to hear from you with any questions, thoughts – or any sector you’d like us to explore in more details – or any particular breakfast obsessions that you had – or, indeed, anything else podcast-related.

Sarah Coles: Back to this episode – and we want to dig a little deeper into how the return of our love of going out has affected businesses operating in the area. So, Charlie Luckin – Managing Director of ‘Signal Brewery’ is still with us. So, Charlie, what part do events play in your business?

Charlie Luckin: They play a small – but very salient – part in our business. We tend to be selling beer into the pubs mainly, but the festival world is huge for us as well now. We tend to partner with festivals and sporting venues of between 500 and 5,000 people.

Susannah Streeter: 5,000 – that’s an awful lot of beer to supply. D’you think that people really are going out more? Does it back up the trends – that we were talking about a little earlier – with what you’re seeing in your business?

Charlie Luckin: Oh, I have mixed feelings about that, really. I think there was a huge relief for people once COVID finished and, suddenly, everybody was going out – but I also think that there was a war chest of cash that people had saved up during the COVID two-and-a-half years, and I think, now, that amount of money is waning, and I think people have spent that now – if I’m candid.

Susannah Streeter: So, d’you think this is the last summer ‘Hoorah?’

Charlie Luckin: I think, possibly, yes. The inflationary cycle – as it is at the moment – is having a huge impact on people. We’re, certainly, hearing from festival organisers that numbers are way down on previous years – and people are nervous now, and I don’t think we can avoid that fact.

Sarah Coles: So – when people actually do go out and go to festivals – or come to your taproom – have you noticed a change in their spending habits?

Charlie Luckin: In the tap room – not so much. We’re very fortunate to have quite a cool, edgy industrial space there, which people find a bit more forgiving and fun – possibly – than standard pubs. So, people come there because it’s a different experience.

Sarah Coles: One of the things I know that you run is ‘Pay-day parties’ – can you tell us a bit about that?

Charlie Luckin: Yeah – this is a new venture for us. We decided, not just to encourage people and together to have a drink with us, but we wanted to treat people to a little bit of value for money at last. Prices in pubs have gone up so radically – mainly owing to the problem with utilities and people being stretched. All the publicans are struggling with very high utility bills at the moment, so prices have had to shoot up. Some pubs are charging £7-plus for a pint now – certainly, in the capital. So, what we’re going to do is… every pay-weekend, we’re going to have a ‘Pay-day party’ down at the brewery, whereby you can have a pint and a slice of pizza for a good old-fashioned fiver.

Susannah Streeter: You’re talking a little bit there about the pressures that landlords are under, and have you noticed how their buying trends have changed, or have some even gone out of business?

Charlie Luckin: Yes – unfortunately, there is a number of businesses that have decided to throw the towel in – which we’re really sad about. Not many of our specific clients, but I’m certainly hearing of issues with other people’s as well.

Sarah Coles: Are they changing the mix of what they’re interested in buying in order to try and get a better margin on what they’re going to sell?

Charlie Luckin: Yes – they’re constantly looking for a better margin. We’re, obviously, a craft brewer – try to be a commercial style brewer – but, in comparison to the ‘Macro’ brands, we have to really pedal hard to keep up with the ‘Macro’ brands and their pricing.

Susannah Streeter: So, a ‘Pint and a slice’ for a fiver certainly sounds appealing. Is the whole idea, really, to get new people through the door so that you can, then, sell them more expensive craft beer – once they become more loyal?!

Charlie Luckin: We prefer to call it ‘Value for money!’ and just give people a better experience, really. The beer that we produce is completely natural beer – for instance – so we’re really trying to push that to the market, rather than anything containing chemicals etc.

Sarah Coles: So, you also sell direct to people at home – so subscriptions and the home delivery market. How important is it for you to be diversified in times like this?

Charlie Luckin: I think extremely important – we’ve got to remain nimble at all times. We launched a subscription service whereby you really benefit from the price you’re paying on a monthly basis to receive really good quality beer to your doorstep.

Susannah Streeter: We’re hearing a lot in the Hospitality business about just how hard it is to recruit staff. What kind of labour shortages – if any – have you experienced?

Charlie Luckin: Many, actually – we’ve struggled to find staff at times. Fortunately, we have rich pickings with the university students, though, and they are with us for the peak periods during the summer.

Susannah Streeter: So, they’re really helping keep your business afloat by not just drinking all the beer at the end of the night?!

Charlie Luckin: Yeah – they go drinking at Uni, and then they come serving drink when they’re not in Uni!

Sarah Coles: It looks like a very tough time at the moment and, generally, for the Hospitality industry. Where d’you see this changing – d’you see a ‘Turning a corner’ any time soon, or d’you think we’re in this for the long haul?

Charlie Luckin: I think I’m a bit of a realist in this respect – and, watching inflation as it is – and, certainly, the squeeze that we’re having put on us by the HMRC… duty is going up on beers between 3.5 per cent and 8.5 per cent next month. I think – possibly – that there’s going to be a quieter time – if that’s a decent way to describe it.

Susannah Streeter: Are you concerned about the impact of this trend for zero-alcohol beers on your business, or are you trying to tap into that trend as well?

Charlie Luckin: Currently, we’re not going to go down the route of zero-alcohol or low-alcohol – that’s not for us at the moment. We feel that we’ve got a great portfolio of beers – we feel that we’re not gonna try and get involved in it at this current stage.

Susannah Streeter: How would you sum up your feelings about the year ahead, Charlie – or are you looking further over the horizon and sensing that there could be a return once inflation dies down?

Charlie Luckin: As a business of our size – in its relative infancy – we’ve been running for seven years… I think we’re in a good place, but I think appetite for beer – certainly, ‘Macro’ beer – is changing significantly, and I think people want a bit more value for their buck. We’ll probably be absolutely fine, I’d say.

Susannah Streeter: Well, cheers for that, and thank you very much, Charlie, for coming onto the podcast and telling us a little bit more about your view of the landscape, currently.

Charlie Luckin: Thank you for having me.

Sarah Coles: So, now it’s time to get a Fund Manager's view with Emma Wall – our Head of Investment Analysis and Research.

[Pause]

Emma Wall: Hello – today, 25 July – I am talking to Audrey Ryan, Manager of the ‘Aegon Ethical Equity Fund.’ Hello, Audrey.

Audrey Ryan: Hello – delighted to catch up with you today.

Emma Wall: Thanks for joining me – and, today, we are talking about the Hospitality sector. So, before we get into any stock specifics – ‘cause I know you have a couple in the portfolio – I thought we could, broadly, talk about the challenges that the sector has faced over the last few years, because it’s had, not one, but two once-in-a-lifetime events which have impacted revenues and profits, and the ability for those companies to find staff and pay for things – hasn’t it?

Audrey Ryan: Yes – I should start by saying that the ‘Aegon Ethical Equity Fund’ can only invest in companies that pass our proprietary ethical screening process, which means that there are a number of stocks within the Travel and Leisure sector that we cannot invest in. As an example, pubs and restaurants that derive more than 10 per cent of their business from the sale of alcohol would not be investable for the fund – but, yes, the Travel and Leisure sector is relatively diverse both in terms of companies within it from a geographic exposure perspective, but also in terms of subsectors within it. So, from hotels to contract caterers, to airlines, and pubs and restaurants. So, this provides the opportunity to invest in what I would deem to be long-term structural growth place but – in addition to that – some slightly more cyclical businesses. It also provides quite a nice mix within the sector to those companies who are exposed to leisure-spend, but also those exposed to corporate-spend – but, as you rightly say, the global pandemic was a challenging environment for a number of companies in the sector. However, I believe that a number of those businesses have dealt well with the situation, and have emerged in a stronger position. We’ve also seen varying degrees of reopening by countries after the pandemic, and this has happened at different stages. So, there are still further benefits to come for a number of companies as things continue to normalise.

Emma Wall: I think many people would assume that the cost of living crisis would, potentially, have a larger impact on hospitality because, ultimately, ‘Is this a discretionary spend?’ ‘Are people cutting back from holidays – from meals out – as prices – bills – are all rising?’

Audrey Ryan: Absolutely – I think there are well-documented ‘Macro’ and consumer-related pressures out there, but it would appear that consumers are still relatively keen to spend in the Hospitality space. I still see that there is some pent-up demand to work through – so whether that be on the overseas holiday or staycations – and, of course, the period of the pandemic… just being able to go out and either enjoy an experience – or an event, such as a concert, or a wedding – but I would absolutely acknowledge the pressures on a number of UK households. I’m very aware of the delay in the transmission effect as rates have moved up to the five per cent level. I guess we are still expecting rates to move slightly higher. That said – as we progress through the second half of this year – I would hope that some of the pressure on household costs – whether that be on fuel or on food – should abate to some degree.

Emma Wall: So, let’s turn to some stock examples. Looking at the portfolio of your fund, where are you seeing the greatest opportunities within the sector?

Audrey Ryan: The one I would like to highlight today would be ‘Whitbread’ – which many of you will be familiar with. They are a leading operator in the UK – midscale and economy hotel market with their ‘Premier Inn’ brand and restaurants in the UK – but also a growing presence in the German budget hotels market. So, they have a very strong asset-backed business model, and ‘Premier Inn’ has both scale and a leading market position within the well-invested brand, and also – in addition to that – distribution strength. We believe they are well positioned to continue to capitalise on the structural supply opportunities that there are within the marketplace, and to accelerate their market share by leveraging the strong financial covenant. Budget hotels have, typically, been relatively resilient in downturns, and ‘Premier Inn’ has both enhanced its brand, and its distribution strength over the past two years – and, in the current backdrop, there is some evidence of reduced competition in terms of expansion. Clearly, tighter financial markets are going to make it somewhat more challenging for some other players within the industry.

Emma Wall: Nothing – of course – with investing is guaranteed – but how do you model something like the economic outlook and the inflation – and, indeed, interest rate outlook – on a company such as that when you are doing your analysis? – because, as you say yourself, things are likely to remain challenged in terms of inflation interest rates for some little while yet.

Audrey Ryan: Many travel and leisure companies have had a relatively challenging time dealing with the inflationary pressures out there – specifically on both wages and on energy – but, looking forward, we should hopefully see some respite in both as inflation remains elevated but moderates into the year-end. What we’re saying is… in the current backdrop, we do have consumer inflation expectations now starting to fall. Producer prices are starting to normalise – and, whilst wage growth is still high, generally, some businesses we are engaging with are suggesting labour markets are much less tight than they were. So, if these trends continue, one would hope that both inflation and wages are likely to head lower as we progress through the next few quarters. For ‘Whitbread,’ itself, their 2023 revenues for the business are up 27 per cent relative to what we saw pre-pandemic – and for year ’20 – and what we’ve seen is a good degree of recovery on the occupancy side – so that’s back to the low 80 per cent level – and the focus, going forward, will much more be about the pricing environment – about the rate they can drive throughout their business.

Emma Wall: Thank you very much – reasons, indeed, to be cautiously optimistic. Thanks for talking today.

Audrey Ryan: Thank you.

[Pause]

Susannah Streeter: And that was Emma Wall – our Head of Investment Analysis and Research – and please bear in mind that, in that interview, those were the views of the Fund Manager and are not individual stock recommendations. You’re listening to ‘Switch Your Money On’ from Hargreaves Lansdown – and now it is time for the ‘Stat of the Week’ – and, as we’re talking, Sarah, about ‘Summer’ and ‘Hospitality,’ I thought we could briefly pop over to the Wimbledon Tennis Tournament and their iconic strawberries and cream, and one thing you might not know is that the tournament organisers have decided to defy inflation and keep their strawberries at £2.50 – the same price they’ve been for about a decade – and that’s despite the fact that the rest of the prices are really on the steep side – like a glass of Pimm’s for £11.20 – but, Sarah, how many strawberries d’you think are consumed during the tournament?

Sarah Coles: I thought you were gonna ask me a question about Pimm’s! I thought I was gonna be on top of it, but I just have no idea – I don’t even know how I’d guess how many strawberries are eaten – so why don’t you give me a clue?

Susannah Streeter: Okay – it’s somewhere between 30 and 40 tonnes.

Sarah Coles: How about 35 tonnes?

Susannah Streeter: These are hard questions, aren’t they? I’m sorry – it’s almost – it’s 38 tonnes washed down with a river of Pimm’s.

Sarah Coles: That’s starting to sound like one of my grocery shops!

Susannah Streeter: For your teenagers in particular!

Sarah Coles: Yes – they do love a bit of strawberries and cream!

Susannah Streeter: And mine have developed a taste for Pimm’s. Well, that’s all from us for now – but, before we go, we do need to remind you that this was recorded on July 18, 2023, and all information was correct at the time of recording.

Sarah Coles: Nothing in this podcast is personal advice – you should seek advice if you’re not sure what’s right for you. Unlike the security offered by cash, investments rise and fall in value, so you could get back less than you invest.

Susannah Streeter: Yes – this is not advice or a recommendation to buy, sell, or hold any investment. No view is given on the present or future value – or price – of any investment. An investor should form their own view on any proposed investment.

Sarah Coles: And this hasn’t been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.

Susannah Streeter: Non-independent research is not subject to FCA rules prohibiting dealing ahead of research; however, HL has put controls in place – including dealing restrictions, physical and information barriers – to manage potential conflicts of interest presented by such dealing.

Sarah Coles: You can see our full non-independent research disclosure on our website for more information. So, all that’s left is for me to thank Sophie, Emma, our guests, and our producer, Elizabeth Hotson.

Susannah Streeter: Thank you so much for listening – we’ll be back again soon – bye-bye!