Why do we have listings fees?
The Campaign For Real Ale's (CAMRA) submission to the Competition Commission's investigation of the groceries market includes some damning criticism of the impact below-cost selling of alcohol is having on pubs.
CAMRA also calls for better access to supermarkets for smaller brewers and criticises listings fees, which it feels impede the progress of smaller brewers.
Listings fees are my bête noir. It never fails to amaze me how we have got ourselves in a situation where retailers and wholesalers in the drinks trade can charge brand owners significant fees for listings. I am reliably informed that one of the big two wholesalers in the on-trade charges the distributor of a major sambuca brand £50,000 a year just to be the top listed brand.
On what grounds can they justify this? I realise that money makes the world go round but gaining a listing through well-spent marketing investment and clever sales strategy somehow sits better with me than simply giving it to the brand with the biggest wad of cash.
Is this money invested back into the market at all? Does the consumer or the licensee benefit in any way from these listings fees?
Or are they simply lining the pockets of big business?