Heineken issues full assurances to Punch tenants
The firm assurances follow Campaign for Real Ale (CAMRA) chair Colin Valentine's appeal to Lawson Mountstevens, managing director of Heineken’s pub arm Star Pubs & Bars, to allay fears over a change to purchasing and operational rules.
Mountstevens confirmed that, if the Punch takeover goes ahead, tenants will not be forced to buy solely Heineken products and licensees and leases will continue as they did under Punch.
A vote on the proposed takeover of 1,900 Punch pubs by Heineken will go ahead at Punch's shareholders meeting today (10 February).
The Society of Independent Brewers (SIBA) hailed the announcement a victory for local and craft brewers.
Heineken confirmed that, should the bid for the takeover be successful, it looks forward to working with SIBA and continuing their partnership.
Mounstevens also responded to Valentine’s request for assurances that tenants will be given the right to go for the market-rent-only (MRO) option.
Spirit of the pubs code
The Star Pubs & Bars boss said the pubco intended to abide by the rules and the spirit of the pubs code.
He added: “Tenants will continue to have the same rights. We said back in 2015 when the Small Business, Enterprise & Employment Act was passed that it was a challenge to pub companies to demonstrate that we are acting fairly and supporting tenants.
“We gave a commitment to rise to that challenge and build even more sustainable and mutually profitable partnerships with our licensees.
“We stand by that. Our aim is to attract and retain the best licensees as we believe they are crucial to the success of pubs.
“That is why we continue to offer leases which have Landlord & Tenant Act protection."
Bedding in period
Mountstevens admitted there would be a "bedding in" period and despite the pubco's best efforts, everything might not go to plan.
He added: “However my commitment to CAMRA and to tenants groups is that our door remains open to constructive discussions on where we can improve.”
Heineken also revealed that upon the takeover completion, there would be a detailed review of the Punch A Group (the 1,900 pubs Heineken could acquire) estate to identify those pubs in most need of investment.
