Lessees charge 78p more a pint than free-of-tie pubs

Lessees are charging 78p more for a pint of standard lager on average compared to managed houses and free-of-tie licensees according to members of the Association of Licensed Multiple Retailers (ALMR).

Evidence provided by members show on average they are charging significantly more than their nearest free-of-tie competitor.

The revelation is included in the ALMR's submission to government ahead of the Pre-Budget report on December 9

The 78p figure contrasts the Office of Fair Trading's (OFT) report on the industry, which claimed drinkers were only paying an extra 8p in tied pubs.

The results will also fuel the fire of anti-pubco campaigners who argue tied licensees are at a major disadvantage in the marketplace because of the price they have to charge for beer due to the tie.

Kate Nicholls, the ALMR's head of communications, said she was "not surprised" by the results of the survey. "What this does show is there was a significant lack of rigour in analysis by the OFT," she added. "This research was in response to the OFT analysis because no-one could believe the 8p figure."

Nicholls said the group asked a selection of its members to visit their nearest managed or free-of-tie competitor - and compare the price of a standard pint of lager. The ALMR was unable to provide a figure of those involved in the survey but chief executive Nick Bish said it was "authoritative" and based on anecdotal evidence and emails collected over the last year.

Many managed houses were charging around £1.90 for a pint, while many lessees were charging an average of £2.80, she added.

But Mark Hastings, director of communications at the British Beer & Pub Association, said: "It is widely recognised that CGA's quarterly survey of pricing in 4,000 pubs and the Office of National Statistics regular pricing surveys among many thousands of businesses provide far more robust, comprehensive and authoritative data both on beer prices in pubs."

The ALMR's Pre-Budget report submission also calls for a "new approach" to the problems facing the trade. It has told the Treasury: "Any solutions in this area must be targeted at the national pubcos and their specific abuses of the tie in the context of long, fully repairing and insuring leases to avoid damaging the industry as a whole."

New laws to give lessees a "genuine choice" of whether to be free-of-tie and have the right to stock one guest beer should be implemented, the ALMR argues.

It has also repeated its call for the AWP machine tie to be removed and warns a fairer way is needed to set pub rents to avoid a "largely unsustainable business model".

But the ALMR says that small regional and family brewers should be spared from any new laws on the beer tie.

Increasing tax rates on alcohol and red tape are also threatening pubs, the ALMR argues.