LETTERs

Buyouts restrict freetrade choice We at Sharp's Brewery see Marston's recent acquisition of the Hall & Woodhouse freetrade business and the...

Buyouts restrict freetrade choice

We at Sharp's Brewery see Marston's recent acquisition of the Hall & Woodhouse freetrade business and the Ringwood brewery last year as a worrying trend, delivering a blow to freehouse landlords'

choices across the UK.

We are concerned that the purchasing of distribution networks through such deals only favour the buyer and lead to a reduced selection for free-house owners and customers at the end of the supply chain.

It seems freehouse owners who pride themselves on offering a varied selection of beers may well find themselves restricted due to takeovers of this nature, where choice is dictated by those who own the distribution.

Breweries without pub estates, such as Sharp's, rely on direct freetrade business, and hope great quality and customer service is enough to keep them competitive.

We also see the future of acquired businesses as uncertain. Economy of scale makes it unprofitable to run satellite breweries, which inevitably return to the main site, posing the risk of potential loss of jobs and much-loved brands.

While we have no problem with the many excellent breweries that run pub estates, our concern is that freehouse distribution networks being bought by larger outfits will be detrimental for the industry and for choice in the longer term.

Sharp's is committed to building up its direct delivery network: by the end of 2008 it will be able to distribute to almost 70% of the UK from depots at Rock, in Cornwall, Bristol, London and Manchester.

Joe Keohane

Director, Sharp's Brewery,

Rock, Cornwall

Front-line troops need help now

I have just returned from a week's well-deserved holiday to be greeted with the usual load of junk mail and bills that I have come to learn to just live with.

One of the first ones I opened was from my pub company, Punch Taverns, regarding an RPI increase in my rent.

I had to take a seat and almost went for the top shelf by the time I finished reading it. A whopping

great 4.05% increase in

my already gut-busting £44,064 per annum rent, excluding VAT and building insurance (£2,700 pa) and licence fees (£470 pa).

My new rent is now a staggering £45,972.76 pa. At this time of year and in the current economic climate, where in God's name do they expect me to get this money from.

I have been the licensee at this pub for almost eight years. I have had the lease for almost five years and was a tenant for the three previous. In that time I have built the business up from nothing through blood, sweat and tears. Are they out to put us all on the dole and to bankrupt us to boot?

Prior to this I had requested a rent reduction or some sort of financial help in order to keep my already-sinking head above water.

Yes, there was some help in the form of a re-launch package - ie, a big darts name for a night, two tribute nights (to which I had to contribute £200) and a new menu design.

But there was no rent reduction, no total machine income for three months, no further discounts on beer prices. Nothing.

What is the point? What is the answer? Who and what have made Punch what they are and put the CEO and the the other top bods in their mansions and the million-pound lifestyles that they have grown to love?

The answer is me and people like me at the coal face. I would just ask that the senior people in the company remember that and for once in their lives give something back to those who are suffering on the front line. We care even if they don't. Talk is cheap. Actions are what count.

Bob Flanagan

The Three Crowns, Dovedale

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