JDW placates Greene King with 99p swap
JD Wetherspoon has brokered a deal with Greene King that will see Ruddles Best replace IPA as the 99p-a-pint offer within its 715-pub estate.
The move looks like a significant step by Wetherspoon in placating Greene King, which was deeply unhappy about IPA being sold so cheap.
Wetherspoon chief executive John Hutson said that Ruddles Best would replace IPA this week or early next. He added: "Rather than fall out with Greene King we're happy to stock Ruddles Best. It's slightly stronger at 3.7% abv and it's every bit as good a pint.
"Greene King has been getting a fair amount of pressure themselves and we want a long-term relationship."
Industry watchers believe that volumes of Greene King IPA more than quadrupled after Wetherspoon began selling IPA for 99p at the start of the year.
Greene King was deeply unhappy with the deal from the start, though, fearing it would undermine the brand equity of IPA.
David Elliott, head of Pub Partners, Greene King's tenanted division, also wrote to tenants insisting Greene King was not supporting the IPA offer.
The withdrawal of the IPA offer by Wetherspoon is a clear concession to Greene King — Hutson had indicated at the start of the year that it was due to run for the first three or four months of 2009.
Discomfort
Justin Adams, managing director, Greene King Brewing Company said: "We have made no secret of our discomfort with the 99p promotion on Greene King IPA, which we weren't aware of and didn't support.
"Given our obsessive attention to quality and the consistently high level of investment we have made in building IPA's brand equity, we are understandably concerned about anything that might undermine this.
"We have great respect for JD Wetherspoon who are long-time supporters of cask ale and very good customers of ours. They have always said that their aim was to get people off their sofas and back into the pub — a worthwhile aim — and we are delighted that they have now decided to focus on Ruddles Best to lead their offer."
