News Sheps tenancy deal: more details emerge

Shepherd Neame has revealed details of plans for more flexible tenancy agreements as part of a new package of measures for licensee support.

The Kent brewer has agreed to tailor the terms and rent of agreements to tenants' business plans.

George Barnes, Shepherd Neame's property and tenanted trade director, said the standard tenancy agreement works on a three-year rent pattern, but where tenants make significant investment, it can be increased to five years. Similarly, where an applicant is unsure they can opt for a shorter term agreement. The shortest on offer is a 13-week taster. "Tenancies are particularly attractive to licensees because they are much less risk and there is less capital needed (than a lease or freehold option)."

Barnes said the number of applicants for tenancies has increased since last year, and potential licensees are of higher quality than before. The brewer also plans a new help-line for properties.

"A lot of enquiries can be quite minor — a couple of tiles falling off the roof — though it can

be hugely frustrating for the licensee if they feel they are being ignored", said Barnes.

Shepherd Neame decided on the new approach following a survey of its tenants carried out by Elliott People. It rated business development managers highly, but showed a number of areas that could be improved.

Other new support measures for tenants include:

• A freeze on prices of its beers until January 2011

• A promise to match tenant investment — up to the value of £25,000

• An exclusive range of beers

• Three beer festivals annually

• A new property help desk

• A web-to-print service allowing tenants to tailor marketing support

• A new website