Ei Group

Ei Group plc, formerly known as Enterprise Inns, is a large pub company in the United Kingdom. Founded in 1991 by Ted Tuppen, it grew to become one of the UK's largest leased and tenanted pub businesses. Ei Group's business model involves owning the properties in which pubs operate, then leasing them out to individual operators, known as publicans, who are responsible for the day-to-day running of the pub.

History

Ei Group's journey began in the early 1990s when the UK government enforced a legislation aimed at reducing the monopoly power of the large brewery companies, leading to the sale of many of their pubs. Seizing this opportunity, Ted Tuppen established Enterprise Inns in 1991. The company expanded rapidly through acquisitions, including a significant purchase of 4,000 pubs from Unique Pub Company in 2004, which made it one of the largest pub companies in the UK.

In 2017, the company rebranded itself as Ei Group plc, reflecting its evolution from a traditional pub company into a diversified business with a portfolio that included commercial properties and managed pubs.

Business Model

Ei Group's business model is primarily based on the leased and tenanted model, where the company owns the pub properties and leases them to individual entrepreneurs who run them as their own businesses. This model allows for a wide variety of pubs under the Ei Group umbrella, from traditional local pubs to more modern bars and eateries, reflecting the diversity of the UK's pub scene.

The company also ventured into the managed pub sector, directly managing a selection of pubs, and developed a commercial property division, leasing some of its properties for alternative uses outside the traditional pub sector.

Acquisition

In 2019, Ei Group was acquired by Stonegate Pub Company, another leading player in the UK pub industry, for £1.27 billion. This acquisition marked a significant consolidation in the UK pub sector, bringing together two of the country's largest pub companies.

Impact

Ei Group has played a significant role in shaping the UK's pub industry. Its business model has provided opportunities for many to run their own pub businesses, contributing to the local economy and community life. However, the company has also faced criticism, particularly from some tenants over rent and beer prices, reflecting the broader challenges within the leased and tenanted pub sector.

Future Directions

Following its acquisition by Stonegate Pub Company, the Ei Group brand continues to operate within the larger Stonegate group. The focus remains on providing support to leased and tenanted partners, enhancing the managed pubs portfolio, and exploring new opportunities in the commercial property market.

Ei Group Resources
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