Thursday, 11 June 2009

Pub Tie under the spotlight

As part of an ongoing theme Owenlane will be publishing a series of stories looking into the British pub industry. Below is the first;

A national campaign has been launched urging the government to refer the Pub tie between landlords and pub companies to the competition commission.

The Federation for Small Business (FSB) joined forces with the Campaign for a Fair Pint last week arguing that tied tenants have to pay much higher prices for their Beer.

In a statement the Chairman of the FSB Clive Davenport said: “The FSB has been campaigning on this issue on behalf of its publican members since 2004, and it’s time we saw a change."
The campaign follows a Business and Enterprise Select Committee report on the tie, published last month, which recommended an investigation.

The BEC report stated; “the tying of beers, other drinks and ancillary products should be severely limited to ensure that competition in the retail market is restored.”

“Pubcos which not only benefit themselves but support their lessees are likely to stay in business. If pubcos push too hard and are too greedy they will fail.”

However these recommendations are not universally supported, a statement from Punch Taverns, one of Britain’s largest pub companies read; “We strongly believe that the tied pub model provides a fair and equitable approach to sharing risk between ourselves and our licensees.”

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