Tenants' ill feeling to beer tie mounts

Growing opposition to the beer tie has been dramatically laid bare by this year's Publican Market Report.

Seventy-two per cent of tenants revealed they were willing to have their rent increased if it meant they could buy outside the tie.

And more than half (56 per cent) of lessees who responded to The Publican'​s survey agreed they too would prefer this arrangement.

Overall 56 per cent of licensees said they would opt to pay more rent to be free - the figure has risen 14 per cent over the last two years.

The annual Publican Market Report, which will be released in full with the August 25 issue of The Publican​, gives a detailed overview of licensees' views on the issues affecting the industry.

More than 500 publicans responded to this year's survey conducted by independent market research company Explomarket.

This year's report also revealed that the gap in discounts offered to the freetrade compared to tenants has grown to £26 per barrel of beer.

Godfrey Page, chairman of the Guild of Master Victuallers, said he felt the figures were a "fair reflection" of feeling in the industry. "I'd like to see an end to the tie as it would make everything more transparent," he said. "People just see the lack of discount on beer as additional rent anyway."

Meanwhile, in a bid to improve relations with tenants, Lincolnshire brewer and pubco Batemans has announced it is scrapping rent reviews from its tenancy agreements. Instead it will offer a fixed rate agreement.

Rob Jones, head of its tenanted pub estate, said: "This allows tenants to have complete certainty about their future and work in the knowledge that their endeavours will not be 'rewarded' by a significant upaward rent review."

The relationship between pubcos and their licensees will be scrutinised by MPs later this year during a follow-up to the 2004 Trade and Industry Select Committee inquiry.

Campaign group Fair Pint is leading the charge against pubcos.

Responding to the Publican's Market Report figures, Steve Corbett, of Fair Pint's steering group, said: "These figures show the increasing disenchantment that pubco tenants have for their landlords.

"One of Fair Pint's challenges has been to reassure tenants that the removal of the tie would not lead to a corresponding rise in rents, as rent would still have to be calculated using the profit assessment method.

"Tenants are increasingly questioning the pubco model rather than their own ability to run a business."

Meanwhile Greene King is the latest pubco to turn down Fair Pint's invitation to meet its members before the follow-up pubco inquiry kicks off later this year.

A written response from David Elliott, managing director of Greene King Pub Partners, said: "I'm confident that the relationships we have with our licensees are open and honest and therefore can see no real value in meeting."

Enterprise Inns, Punch Taverns, and Scottish and Newcastle Pub Enterprises have already snubbed the group's offer.