25th September 2008
The Federation of Small Businesses (FSB) has called for an end to beer purchasing ties between pub management companies (pubcos) and landlords.
The call comes as the Business and Enterprise Committee re-investigates the practice, four years after its last review concluded that the disadvantages of 'beer ties' are usually balanced by their benefits.
However, an FSB survey showed that 94% of its pub trade members thought the ties should be scrapped. Some 99% also said that little had improved since the 2004 review.
Many pubcos oblige tenants to source some or all of their beer from their pubco or a pubco-nominated supplier.
Speaking on the Tonight programme earlier this month, Nicky Francey of the Fair Pint Campaign said that the beer tie system was "morally wrong".
"We should be given the freedom to shop around and choose the beer we want to sell and find the best prices for us," he said.
The Publican's Market Report, released in August, reported calls for an end to the pubco purchasing model. Some 72% of tenants surveyed said they were willing to have their rent increased if they could buy outside of their tie.
Mark Hastings, director of the British Beer and Pub Association defended the system. "Less than 14% of [pub] closures are in the major pub companies," he told Tonight.
"I think this is a clear demonstration that the pubco model is far more resilient and far more responsive to the needs of pubs than the free trade model."
Publicans 'call to cut beer ties'
The call comes as the Business and Enterprise Committee re-investigates the practice, four years after its last review concluded that the disadvantages of 'beer ties' are usually balanced by their benefits.
However, an FSB survey showed that 94% of its pub trade members thought the ties should be scrapped. Some 99% also said that little had improved since the 2004 review.
Many pubcos oblige tenants to source some or all of their beer from their pubco or a pubco-nominated supplier.
Speaking on the Tonight programme earlier this month, Nicky Francey of the Fair Pint Campaign said that the beer tie system was "morally wrong".
"We should be given the freedom to shop around and choose the beer we want to sell and find the best prices for us," he said.
The Publican's Market Report, released in August, reported calls for an end to the pubco purchasing model. Some 72% of tenants surveyed said they were willing to have their rent increased if they could buy outside of their tie.
Mark Hastings, director of the British Beer and Pub Association defended the system. "Less than 14% of [pub] closures are in the major pub companies," he told Tonight.
"I think this is a clear demonstration that the pubco model is far more resilient and far more responsive to the needs of pubs than the free trade model."
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