By Christopher Gannatti, CFA and Nitesh Shah

Energy markets have once again been thrust into the spotlight. In recent weeks, geopolitical tensions in the Middle East have pushed Brent crude back above $100 per barrel and triggered sharp

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Britain’s second-largest pub operator, Greene King, is set to sell around 150 managed pubs and convert a further 150 into tenanted or franchise venues as part of a sweeping overhaul of its estate strategy in response to mounting economic pressures.

The move, described by chief executive Nick Mackenzie as a “strategic reaction” to a rapidly “changing operating environment”, reflects the deep structural challenges facing the UK hospitality sector, from rising employment costs and persistent inflation to weakening consumer spending.

Greene King currently operates approximately 1,500 managed pubs alongside a further 1,000 leased and tenanted sites. Under the new plan, a significant portion of its directly managed estate will be either divested or transitioned into lower-cost operating models, allowing the group to concentrate investment into what it describes as its “core portfolio”.

The decision comes at a time when pub operators are grappling with a convergence of financial headwinds. Labour cost increases, including higher National Insurance contributions and minimum wage rises, have significantly raised operating expenses, while elevated energy prices and supply chain costs continue to squeeze margins.

At the same time, consumers, facing their own cost-of-living pressures, are cutting back on discretionary spending, particularly in areas such as dining and social drinking.

Although the government has introduced temporary business rates relief for pubs, industry leaders have repeatedly warned that the measures fall short of addressing the scale of the challenge.

Greene King’s own financial performance underscores these pressures. In the 12 months to December 2024, the company reported revenues of £2.45 billion, up 3.2 per cent year-on-year, but swung to a pre-tax loss of £147.1 million. Net debt, excluding lease liabilities, stood at £2.1 billion, with debt servicing costs rising to £110 million.

Central to Greene King’s strategy is a shift away from capital-intensive managed pubs, where the company owns and operates the business, towards leased, tenanted or franchise models, where independent operators run the pubs while Greene King retains ownership of the property.

This transition reduces operational complexity and cost exposure, while providing more stable, predictable income streams through rent and supply agreements.

Mackenzie said the restructuring would allow the company to “maximise the potential and profitability” of its estate while adapting to evolving market conditions.

“The whole market is changing; consumer dynamics are changing, and the economics of running pubs have shifted significantly over the past few years,” he said.

All pubs earmarked for sale or conversion will be placed into a newly created division during the transition period. While no fixed timeline has been set, disposals are expected to take place over the medium term, with a “substantial proportion” of proceeds reinvested into the retained managed estate.

Alongside the estate reshaping, Greene King is also planning to close around 20 pubs, broadly in line with its typical annual closure rate.

While the company has not disclosed how many jobs may be affected, it said it would seek to redeploy impacted staff across its wider business wherever possible. The group currently employs around 40,000 people.

The restructuring follows earlier indications that cost pressures could lead to further efficiencies, including potential job reductions, as the business seeks to restore profitability and improve margins.

Greene King was acquired in 2019 for £4.6 billion by CK Asset Holdings, the investment vehicle controlled by billionaire Li Ka-shing. The current strategy forms part of a broader plan to reposition the business ahead of its 2030 growth ambitions.

The company’s portfolio includes well-known pub brands such as Hungry Horse, Chef & Brewer, Farmhouse Inns and Flaming Grill, as well as brewing operations behind labels including Old Speckled Hen and Abbot Ale.

By concentrating resources on higher-performing sites and adopting a more flexible operating model, Greene King aims to grow market share, enhance customer experience and improve financial resilience in what it describes as an “increasingly dynamic” and challenging environment.

The move is emblematic of a wider shift across the UK pub and hospitality sector, where operators are increasingly prioritising efficiency, capital discipline and adaptability as they navigate a prolonged period of economic uncertainty.

Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

Eli Lilly on Thursday said its next-generation obesity drug retatrutide cleared its first late-stage trial on Type 2 diabetes patients, helping them manage their blood sugar levels and lose weight. 

The drug lowered hemoglobin A1c — a key measure of blood sugar levels — by an average of 1.7% to 2% across different doses at 40 weeks compared to placebo, meeting the study’s main goal. Patients started the trial with an A1c in the range of 7% to 9.5%, and were not taking other diabetes medications. 

Retatrutide also met the study’s second goal, helping patients at the highest dose lose an average of 16.8% of their weight, or 36.6 pounds, at 40 weeks, when evaluating only patients who stayed on the drug. When analyzing all participants, including those who discontinued treatment, the highest dose of the drug helped patients lose 15.3% of their weight.

Patients with Type 2 diabetes historically struggle to lose weight, so Lilly is “very excited” to see that the drug led to both a competitive drop in blood sugar levels and significant weight loss, Ken Custer, president of Lilly Cardiometabolic Health, said in an interview. 

The company was also “very pleased” with the relatively low discontinuation rates due to side effects, which were up to 5%, he added.

They are the second late-stage results to date on retatrutide, which works differently from existing injections and appears to be more effective, at least for weight loss. Lilly is betting big on retatrutide as the next pillar of its obesity portfolio after its blockbuster weight loss injection Zepbound and its upcoming pill, orforglipron. 

But Lilly has yet to file for approval for the drug for obesity or diabetes. The company expects to report findings from seven additional phase three trials on the drug by the end of the year. 

There are no head-to-head trials of retatrutide against other drugs, making it difficult to directly compare efficacy. 

Still, retatrutide’s A1C reduction doesn’t appear to be the greatest Lilly has seen within its portfolio: The highest dose of Zepbound lowered the measure by more than 2% at 40 weeks in two separate trials on diabetes patients.

But Custer said retatrutide’s A1C reduction is still “very, very strong” compared to other diabetes medications that don’t target gut hormones. 

He also said that having options in the obesity and diabetes space will be important because “not everybody is going to be helped with or satisfied with the same treatment.” Choosing which drug to take will depend on “individualized tailoring of solutions and patients,” particularly earlier in their diabetes treatment, he added. 

For example, Custer said patients who want to regulate their blood sugar could benefit from either Zepbound or retatrutide. But if they are looking to lose more weight, the latter might be a better option, he said.

In the two separate diabetes trials, Zepbound helped patients lose slightly less weight than retatrutide did. In one study called SURPASS-2, the highest dose of Zepbound helped patients lose an average of 13.1% of their weight at 40 weeks. In the other study, SURPASS-1, the highest dose helped patients lose an average of 11% of their weight at the 40-week mark.

Retatrutide’s safety profile was similar to other injectable diabetes and obesity drugs, primarily causing gastrointestinal side effects. Around 26.5% of patients on the highest dose experienced nausea, while roughly 22.8% and 17.6% had diarrhea and vomiting, respectively. 

Low rates of patients experienced dysesthesia, which is an unpleasant nerve sensation.

Dubbed the “triple G” drug, retatrutide works by mimicking three hunger-regulating hormones – GLP-1, GIP and glucagon – rather than just one or two like existing treatments. That appears to have more potent effects on a person’s appetite and satisfaction with food than other treatments.

Tirzepatide, the active ingredient in Zepbound, mimics GLP-1 and GIP. Novo Nordisk’s semaglutide, the active ingredient in Wegovy, mimics only GLP-1.

As retatrutide inches closer to the market, Novo is racing to catch up to Lilly. In March 2025, Novo said it agreed to pay up to $2 billion for the rights to an early experimental drug from the Chinese pharmaceutical company United Laboratories International. 

Novo’s newly acquired drug is a clear potential competitor to retatrutide because it similarly uses a three-pronged approach to promoting weight loss and regulating blood sugar. But Novo’s treatment is much earlier in development, meaning it will take several years before it reaches patients.

RHEINFELDEN, GERMANY – In the world of specialized transport and utility vehicles, the components hidden beneath the chassis are the difference between a seamless operation and a costly breakdown. From its headquarters in Rheinfelden, CVS engineering GmbH has established itself as the engineering heartbeat of the mobile industry, providing the “lungs” for everything from city trains and buses to heavy-duty vacuum trucks and silo trucks.

With a portfolio that bridges the gap between high-performance vacuum systems and precision compressor technology, CVS engineering is redefining what it means to move materials. Whether they are liquid, solid, or even living.

A multidimensional portfolio for global industries

CVS engineering doesn’t just manufacture parts; they provide the mechanical backbone for several critical sectors. Their complete product range addresses the specific stresses of mobile applications:

• Dry Bulk Handling: The SKL series of oil-free screw compressors (SKL 700, 1100, 1200, 1500) sets the standard for unloading silo vehicles. These systems ensure that bulk goods like cement, grain, or plastic pellets are moved rapidly and crucially without oil contamination.
• Sewage & Liquid Waste: The VacuStar series (including rotary vane and liquid ring pumps) is built for the “dirty work.” These pumps are essential for sewer cleaning, sludge extraction, and the transport of hazardous liquid waste.
• Urban Transportation: CVS provides specialized rotary vane compressors for the rail and bus sectors, ensuring reliable pneumatic power for braking and suspension systems in public transit.
• Aquaculture: Precision-engineered vacuum pumps are also tailored for fish handling, allowing for the gentle and efficient transport of live fish in commercial fishing and farming.

Innovation driven by durability

What sets CVS engineering apart is a relentless focus on longevity in “harsh and heavy” conditions. “Our technologies ensure maximum suction capacity and durability in extreme environments,” explains Fabio Geiger, Area Sales and Marketing Manager at CVS engineering.

To combat the high-heat and corrosive nature of industrial cleaning, CVS offers optional plasma nitriding and ceramic coatings on its VacuStar series. Furthermore, their innovative cell aeration systems allow for continuous operation at high vacuum without the risk of overheating—a common failure point in inferior systems.

The shift toward sustainable operations

As global regulations tighten around noise and emissions, CVS is leading the transition with “Dry Bulk” solutions that prioritize efficiency. This includes the SKL-E Pack, a stationary solution that allows for the unloading of dry bulk without requiring the truck’s main engine to idle.

“Particularly against the backdrop of urbanization and increasing environmental regulations driven by decarbonization and noise protection, there is a growing need for low-emission transport solutions,” emphasizes Geiger.

A partner for OEMs and Fleet Owners

By focusing on low weight, wide speed ranges, and outstanding performance, CVS components help manufacturers (OEMs) and haulage firms reduce their overall lifecycle costs. Beyond the core units, CVS also delivers the right accessories including innovative cell aeration systems, filters, and valves as well as drive components like hydraulic adaptors, all designed to integrate seamlessly into modern vehicle architectures.

Whether it’s maintaining urban infrastructure, supporting the food supply chain, or powering public transit, CVS engineering GmbH continues to prove that when the world needs to move, their technology provides the pressure, vacuum and the power to get it done.

Contact:

Fabio Geiger

Area Sales & Marketing Manager

CVS engineering GmbH

Mobile: +4915167973982

E-mail: fabio.geiger@cvs-eng.de

Visit us at: www.cvs-eng.com