Tenants lash out at Greene King purchasing power

Lawyers representing 100 tenants in a case against Greene King have refuted claims put forward in a letter by Pub Partners managing director David Elliott this week.

The tenants say they cannot compete with Greene King managed houses, which are able to purchase beer from the brewer at cheaper prices.

Mr Elliott dismissed this claim and argued that Greene King did not have an anti-competitive 40 per cent market share in any area.

However, in a letter to The Publican lawyers Maitland Walker slammed the brewer, claiming there are areas of the UK where the pubco does have a dominant market share. It highlights the area of Abingdon in Oxfordshire, where it says that out of 28 pubs, 22 belong to Greene King.

It also refutes Mr Elliott's claim that the issue of beer prices charged to tenants had not been raised with Greene King.

The law firm says it has minutes of a meeting dated June 16 2004 attended by Mr Elliott where this issue was discussed.

The letter also claims: "Mr Elliott's comments appear to ignore the fact that much of the beer sold at Greene King pubs, both managed and tenanted, is not brewed by Greene King.

"Evidence provided to us to date suggests that Greene King tenants and lessees are not adequately compensated."

Speaking this week, David Elliott told The Publican: "There is nothing in Maitland Walker's letter that changes Greene King's position and we continue to deny any accusations that we are abusing a dominant position."

• Click hereto read the letter in full.