BBPA vows "fundamental" reforms to tied agreements

The British Beer & Pub Association (BBPA) says it has reached an agreement with the BII and Federation of Licensed Victuallers Associations (FLVA), which will mean "fundamental reforms" to the way the pubco model operates.

This will mean "greater openness and transparency, better and clearer information and improvements in support and accountability", the BBPA said.

It also said its action "should make any further official intervention in the sector unnecessary".

The announcement comes following months of negotiaton in the industry mediation process.

However all the other parties involved in the mediation process, except the FLVA, have agreed to form a new lobbying group - the Independent Pub Confederation (IPC) - to fight for licensees, small brewers and consumers.

Brigid Simmonds, the BBPA's chief executive said its agreement will "see fundamental reforms that will benefit all licensees".

She added: "What has been achieved is a sound basis for a lasting settlement.

"The industry will implement a comprehensive set of reforms to the way tied agreements operate.

"The result will be greater openness and transparency, better and clearer information and improvements in support and accountability. The BII is pivotal to the agreement, as through its accreditation process, it will ensure that all BBPA member companies abide by its terms."

The commitments will be submitted to the government and the OFT, she said.

She added: "They should make any further official intervention in the sector unnecessary."

"This new framework provides a solid foundation for both licensees and pub owning companies to move forward on a positive agenda of improved understanding about the expectations, roles and responsibilities within their business relationship.

"The BBPA and all its member companies have devoted considerable time and effort in coming together to agree a wide ranging package of positive actions to be implemented by all our member companies. We did this because we believe that an equitable settlement of these issues is important for the whole sector.

"We would like to thank those parties who have worked with us to reach this agreement that is in the interests of the whole trade. We trust we can all now move on, and turn our attention and focus to the vital mission of supporting our licensees and pubs through what is a turbulent, difficult, and uncertain economic environment."