The price is right - or is it?
Apart from next month's smoking ban in England, the debate raging most strongly in the industry at the moment is the huge disparity between prices in the on-trade and the off-trade.
Many would argue that there is very little that publicans can do. If their pub is tied to one of the large UK brewers - or more likely they are tenants to one of the super pub companies which control the drink they supply and the price at which they can buy beer, wine and spirits - then their ability to manipulate prices to create a competitive advantage is somewhat limited.
Given the amount of duty on alcohol at present, it is difficult to see what they can do other than accept the situation and look to create a difference in the eyes of the consumer by enhanced customer service levels.
The other side of the debate, and one that continues to get a lot of people's backs up, is the ongoing practice of discounting by supermarkets.
Recent claims suggest that the off-trade has increased volume sales of alcohol by 16 per cent in the last five years, compared with only a marginal increase in the number of sales from people drinking out. Many publicans believe supermarket pricing has been the biggest single issue affecting their business in the last few years.
It is not only a problem affecting the UK either. Last week, I managed to grab a few days golfing in Spain. Doing the decent thing, we decided to stock up the fridge to thank our kind hosts for allowing us the use of their villa. The local supermarket did not have a special offer on San Miguel but we still managed to pick up 12 330ml bottles for €3.80 - approximately £2.70. This, compared to the €5.50 (or £3.90) I paid for a pint of the same drink at Malaga airport, shows just how uneven the playing field is these days.
So what is causing this huge price disparity? Some would argue the brewers are to blame, for allowing supermarkets to buy their surplus stocks at knock down prices and then to release them to the public with incredibly good, cheap offers.
While there may be an element of truth in this argument, it does somehow go against the brewing industry's duty to promote responsible drinking, something they have been at the forefront of in recent years.
By and large the UK pub industry does a pretty good job at promoting responsible drinking, preventing underage drinking and working closely with the police and local authorities to ensure that the majority of us enjoy our leisure time in Britain's pubs and bars.
With food set to become the key differentiator for many operators in the sector post July 1, the need for some consistency around drink pricing has never been so crucial.
Geoff Newton is relationship director UK Licensed Trade, Barclays
