However, the sector’s struggles have created opportunity according to Paul Marriage, manager of the Premier Miton Tellworth UK Smaller Companies fund. Holdings such as Young & Co.’s Brewery reflect his belief that the UK consumer has proved more resilient than expected and that well-run pubs, particularly in and around London, remain highly relevant. In his view, the pub sector is not disappearing, it’s just becoming more selective, with stronger businesses potentially benefiting as competitors close their doors.
Is the great British pub still worth investing in?
By Staci West on 19 May 2026 in UK
National Wine Day lands on Monday, 25 May — which feels like a perfectly reasonable excuse to ignore the phrase “school night” and order a large glass of rosé. Ideally, it would be enjoyed in a pub beer garden, preferably with sunglasses on, chips on the table and absolutely no intention of checking emails for the rest of the afternoon. What a bank holiday!
Sadly, that simple British pleasure is becoming harder to find. Pubs are disappearing at an alarming rate, squeezed by rising costs, heavy taxes and changing consumer habits. Which raises an interesting question for investors: while the great British pub may be under pressure, could some pub companies — and the funds backing them — still be worth raising a glass to?
Here, we look at the pros and cons of investing in the sector, the companies involved, and the investment funds with exposure to them.
Sad decline of pubs
Behind the sunny beer gardens and oversized glasses of rosé, the reality for many pubs is far less cheerful. Hundreds are shutting every year under the weight of rising costs and heavy taxation, according to the British Beer and Pub Association (BBPA). More than 16,000 pubs have closed since the start of COVID-19, with an average of two calling last orders for the final time every day during the first three months of 2026*.
Importantly, pubs are still big business. The UK pub market is still worth £24.1 billion and growing year-on-year**. Listed pub groups are also holding up relatively well, despite the difficult backdrop. JD Wetherspoon recently announced that like-for-like sales were up 3.4% in the 13 weeks to 26th April 2026***. Young & Co’s brewery, meanwhile, saw half-year revenue jump 5.4% to £263.6 million****.
Changing business models
There’s also been increased interest in non-alcoholic and low alcohol drinks. In fact, nearly half of young adults are choosing to moderate their intake. Pubs have embraced this switch. Around 87% of outlets served at least one no- or low-alcohol beer, compared with just 2% in 2019^.
Of course, alcohol remains popular. According to a recent House of Commons report, 76% of adults drank it in 2024. More than a fifth consumed more than the weekly limit of 14 units. Households spend around £14 per week on alcohol – both at home and in the pubs, according to an analysis of official statistics^^.
How to invest in this area
There are several ways to get exposure to this area. The first is buying shares in alcohol producers, retailers, and pub groups listed on international stock markets. You can also gain indirect access to the alcohol and pub sectors by investing in businesses which own the real estate leased to manufacturers and outlets. Here are five funds offering exposure to this industry:
JPMorgan UK Small Cap Growth & Income Trust
The experienced duo of Georgina Brittain and Katen Patel aim to provide capital growth and an enhanced dividend from UK-listed companies. Their holdings currently include pub groups Marston’s and Mitchells & Butlers^^^, which operate around 3,000 pubs between them. We believe the managers’ focus on bottom-up stock picking further down the market-cap scale should help it continue to deliver strong performances.
Fidelity European Trust
The trust has exposure to LVMH^^^^, the French luxury goods business whose wine and spirits division includes Moët & Chandon, Krug, Veuve Clicquot, and Hennessy. This is a core European equity portfolio, run by Samuel Morse and Marcel Stotzel, with a disciplined, cautious long-term focus. Although not an income fund, the team wants companies which can sustainably grow their dividends over time.
WS Amati UK listed Smaller Companies fund
This is an unconstrained portfolio which seeks structural UK growth businesses that can grow faster than the economy. Its holdings include Great Portland Estates^^^^, a property development company, which has signed a 10-year lease with Heineken UK, the beer and cider business. The fund, which boasts an impressive long-term track record, is managed by a team of exceptionally experienced managers.
Schroder Recovery
The aim of this fund is to deliver attractive capital growth by investing in companies which have suffered business or share price setbacks. One of its largest holdings is in J Sainsbury^^^^, which sells a vast array of wines, beers and spirits across 600 supermarkets and 850 convenience stores. We believe this fund offers investors wanting exposure outside the mainstream large-cap UK equities an interesting selection of names.
Comgest Growth America
If you’re not buying alcohol in a pub or the local supermarket, another option is ordering it online, and Amazon will be the first choice for many people. The retail giant is one of the largest holdings*^ in the Comgest Growth America fund, which is a concentrated portfolio of 25-35 high-quality companies. We believe the fund has a very clear process and an experienced management team. We also like its employee-owned collegiate partnership culture.
*Source: BBPA, 5 May 2026
**Source: Lumina Intelligence, UK pub market 2025
***Source: trading update announcement, 6 May 2026
****Source: interim results ended 29 September 2025
^Source: BBPA, 12 June 2024
^^Source: House of Commons, 13 May 2026
^^^Source: full portfolio holdings, 31 March 2026
^^^^Source: fund factsheet, 31 March 2026
*^Source: fund factsheet, 30 April 2026
This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions.
Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice.
Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.
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