by The PMA Team
Buying outside the tie is set to be a thing of the past because of the spread of beer flow monitoring equipment.
Brulines equipment is set to be with installed in another 10,000 pubs in the next four years, according to Brulines chief executive James Dickson.
Rival Nucleus Data is believed to have equipment in almost 2,000 pubs and expects to install another 2,000 in the coming year.
Brulines boss Dickson claimed that installation of equipment has often led to a 7% increase in beer volumes for pubcos as licensees have stopped buying out. Currently, Brulines equipment is installed in 10,000 pubs.
Brulines plans to install equipment in a further 2,500 pubs per year for the next four years to make a total of 20,000 pubs or 70% of the tenanted sector.
Dickson said 20% of licensees who have had a Brulines system fitted in the past have been buying outside the tie in some form.
He said: 'I imagine there are some licensees funding a fairly good lifestyle by buying their beer outside of the tie and it can be a life-changing experience having to stick to it.
'There are lots of pubs buying out although there are degrees. There are licensees buying the odd keg, some doing it on a random basis when they need cash and others are systematically buying out.
Licensees tend to stop buying out eventually once a Brulines system is fitted. Said Dickson: 'People will often stop buying out when they know they are getting a Brulines system; some will stop when it's installed; some will stop when they've been told they are buying out; others will stop when they've been served with a letter of undertaking.
Currently, Punch is Brulines biggest customer with 80% of the 8,200-strong estate fitted with systems.
Dickson claimed Punch is leading the way in sharing Brulines management information with licensees.
John O'Neill had Brulines fitted at all the pubs in his estate when he ran Heritage Pub Company the company was sold in May. 'I would suggest between 10% and 15% of tenants were buying out before Brulines were fitted, he said.
'Brulines is invaluable as part of the tool kit to keep tenants on the straight and narrow.
Business profile p13