Could drinks price war be on horizon?

Competition among managed pubcos over drinks pricing appears to be hotting up following Wetherspoon's decision to discount Greene King IPA to 99p per...

Competition among managed pubcos over drinks pricing appears to be hotting up following Wetherspoon's decision to discount Greene King IPA to 99p per pint and San Miguel to 99p per bottle.

A greater range of cask beers have been on sale recently for 99p per pint at least one further Wetherspoon's site - the Thomas Ingoldsby in Canterbury, Kent - but this was only a temporary offer, according to the company.

The IPA and San Miguel offers, meanwhile, will continue indefinitely across Wetherspoon's 713 pubs.

Bottles of Blossom Hill Rosé wine will also sell for £4.99, a single measure of Sailor Jerry Rum for £1.29 and a 750ml bottle of Jacques Cider for £3.99 under the scheme.

Punch Taverns' managed Spirit pubs, which number close to 900, are competing with a slew of drinks promotions.

The operator is running "January sales" in which 175ml glasses of White Mountain wine, and pints of Fosters, Carling and John Smiths will be sold from £1.55 per drink, and is soon to launch a promotion on Becks Vier where customers in 122 pubs can order half a pint for £1.47 and get the other half for free.

Town and City Pub Company is undergoing a drinks pricing review.

Its offers already include Echo Falls wine at £4.95 a bottle and a range of beers at £1.29 a pint. "What Wetherspoons is doing is nothing new," a spokeswoman said.

"We will continue to maintain an aggressive pricing policy."

Mitchells & Butlers' Town Pubs currently have promotions including 175ml glass of Blossom Hill from £1.75.

Some operators, on the other hand, have slammed the discounting tactics.

Explaining Orchid's decision not to get involved with a price war, commercial director Simon Dodd said: "Price is one lever but too low pricing is short-term and attracts the wrong demographic for our pubs."

George Arkell, director at Arkell's Brewery, which runs over 100 pubs, 13 of them managed, added: "The 99p pint of beer is a gimmick and we cannot nor would not under-sell our beer at that price. Selling the beer at less than it costs to brew would be a short-term stunt which will not benefit either breweries, pubs or our customers in the long term."