Pubcos hit back at FT-Punch story

Industry figures have slammed an article published in today's Financial Times, about beer pricing and tenanted pub company models, as "biased and irresponsible".

The article compared beer prices of wholesalers, managed group JD Wetherspoon (at retail) and those seen between pub companies such as Punch Taverns and Enterprise Inns and its licensees.

The article, which was perceived to be highly critical of the tenanted tied-lease model, came just 24 hours before Punch was due to price its shares.

Under the headline "Publicans left reeling by Punch" the piece said that in extreme cases, patrons of Wetherspoon pubs paid less for beer than a licensee does from its pub company.

"This piece is totally biased," said Punch commercial director Francis Patton. "The fact is that we are in business to make money. Yes the licensee does have to buy beer from us but in return they get a very good asset and a very cheap route to market."

The Punch shares are due to start trading among institutions tomorrow and go live fully, on Tuesday.

The company was keen to emphasise that over 80 per cent of lessees re-sign at the end of their agreement. Enterprise Inns chief executive Ted Tuppen said: "The timing and the content of this article was biased and irresponsible, and does the reputation of the Financial Times no good whatsoever."

Another industry leader who asked not to be named said: "This is absolutely outrageous. The story was poorly researched and completely unbalanced - it's the sort of thing you expect to see in a low-grade red top."

The full-page article appeared to be based on interviews with just three lessees.