Greene King absorbs insurance rise

Greene King (GK) is to absorb a 20% hike in insurance premiums and hold back beer price increases until May.

The aim is to help its 1,450 tenants and lessees combat the challenging trade climate.

Greene King says it will

not charge licensees any

extra on cover for pub buildings and will stand the in-creases itself. The company, in common with most other pub operators, has been hit by a huge increase in premiums, many fuelled by last summer's flood devastation which led to 500 pubs being closed and thousands more extensively damaged.

"This year insurance premiums for tenanted pubs have gone up by a huge 20%, but rather than pass this on to our licensees we have taken the decision to absorb the costs ourselves," said managing director of Greene King Pub Partners, David Elliott.

Like many companies Greene King insures all its leased and tenanted pub buildings itself and re-charges licensees who are responsible for their own cover in respect of internal fixtures and fittings and other items connected with the business.

The delay on beer price rises comes despite the brewer being hit by a 40% rise in energy bills and increases in barley costs of more than £1m.

Tenants had been due to pay increases of between 3% and 5% on GK-produced products by the beginning of March, but the company's Pub Partners division says it will delay passing them on.

Federation of Licensed Victuallers Associations chief executive Tony Payne said: "It's refreshing to see a company helping its tenants and I hope others will follow suit."