Pubs crippled by brewery ties - campaigning body
Pubs in Gloucestershire are being crippled by rising beer prices and inflated rents, according to a campaigning body.
The Federation of Small Businesses's county branch says pubs owned by brewery companies are being forced to pay up to 50 per cent more for beer compared to independent landlords who buy their drinks on the open market.
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A survey of publicans revealed 85 per cent said high beer prices were a problem and nearly three in four said they would support a breakaway from the breweries.
Paul Goffe, FSB spokesman for Gloucestershire, said the body would campaign for the Government to abolish unproductive ties between pubs and breweries and create an independent ombudsman for the industry.
He said: "Tenanted pubs are being crippled by high beer prices and other costs. Pubs are closing at a rapid rate and if action is not taken now for a fair deal, many more of our great Gloucestershire pubs will be forced to call time.
"Over the past year, 2,377 pubs have closed nationally and currently about seven close every day. Pub closures not only affect the tenants and their families, but also the wider community."
A Parliamentary investigation earlier this year concluded the Government should act urgently to redress an imbalance in power between pub companies and their tenants.
The report of the Business and Enterprise Select Committee said the problem was partly to blame for the spiralling numbers of pubs across the country being forced to close.
The verdict has been backed by Prestbury landlord Simon Daws, who has long been calling for a compromise between pubs and owner companies to provide a boost to the industry.
Mr Daws, who runs the Royal Oak, said: "The FSB are not the only respected trade body making these claims.
"CAMRA and the House of Commons Business and Enterprise Committee investigation into tied pubs also reached a similar conclusion.
"Anything that allows struggling publicans to make a decent living will not only benefit the publican and local brewers, but customers too.
"Too many tied Gloucestershire pubs are closed or falling to pieces through a lack of investment because their business model has been strangled by inflated drink prices."
Watchdog group Campaign for Real Ale is also campaigning for the traditional pub ties to be reformed.
But spokesman Iain Loe said the group would not support the abolition of brewery links.
He said: "The fear is that we would get something worse in its place.
"The system definitely needs a change. Customers are having to pay more for their beer at pubs which are tied to companies. But we would like to see a considered reform of the ties rather than a total abolition."







2 Comments
by Ad Sum, Glawster
Saturday, September 05 2009, 1:12PM
“Clearly NewGloucsMan doesn't have a clue regarding the pub trade. If a greengrocer rents his shop he can buy his goods from any wholesaler who sells at the best price, his landlord has no say in the matter. A pub landlord who pays rent to the likes of Enterprise Inns or Punch Taverns, is forced to buy all of his alcohol through that company and has to pay vastly over the top prices for the privilege. this reflects on the price the poor customer has to pay. These companies are not interested in the end user (customer) they are just glorified estate-owning conglomerates who fleece their tenent (and therefore his customers).”
by NewGloucsMan, Kingsway
Saturday, September 05 2009, 10:05AM
“surely this is evolution of business. If the pubs don't work then they will fold and be bought by independents or ran by someone who can diversify enough to turn a profit. It used to be that the links to the breweries were desirable for the advertising perks, but now in tougher times, then owners have to work harder. This is the same for all businesses”