Enterprise lessees call for beer tie review

A group of South Yorkshire licensees plan to launch a national campaign to force Enterprise Inns to review the price of tied beer and other trading conditions.

Ten hosts running pubs in Rotherham and Sheffield have banded together to protest about tied beer charges which they claim are 70% more than independent wholesale rates.

The Enterprise lessees say the cost of beer means they cannot compete with rival pubs and trade in their houses has fallen off as a result.

The group also claims Enterprise is handing over empty pubs to management companies and temporary licensees on "give away " terms for as little as £1 a week in rent.

Enterprise has hit back saying it does not give relief companies pubs on the cheap and has also defended the way it deals with licensees unhappy with their trading conditions.

"If lessees are unhappy about their own conditions we will listen to them because we are doing all we can to help retailers in these difficult times," said eastern managing director Colin Pedrick.

The licensees' spokesman Roger Davies, who runs the Yellow Lion at Aston, Sheffield, said hosts were struggling with rents but the high price of tied beer was the chief concern.

"We are paying 70% more for beer than prices charged by local wholesalers in some cases and we are struggling to stay in business.

"It does not help us when we see empty pubs being taken on by companies enjoying cheap rents of between £1 and £100 per week and discounted beer often up to 30% off," Davies claimed.

The ten licensees hope to persuade other Enterprise lessees to join their campaign and plan to set up a website publicising their action.

Enterprise insists it is already implementing a number of different initiatives to help out licensees.

"There are a host of things we are doing to help retailers and if people want to talk to us we will listen," Pedrick promised.

Pedrick said he could not comment on the commercial details of arrangements the company had with relief management companies and licensees running pubs temporarily as tenants at will.

"These companies are primarily there to keep pubs open which makes it easier for us to market them and re-let them.

"The alternative is closing the doors and depriving communities of their local pub and nobody wants to see that happen if possible," Pedrick added.