Charles Wells charges 'corkage'

Charles Wells is letting selected tenants stock one beer out of tie if they pay a "corkage fee" of £65 per 36-gallon barrel and reach sales targets.

The company has revealed details of its "Micro Brewed Corkage Agreement" in its updated code of practice, which has received the BIIBAS stamp for clarity in principle.

Under the agreement, licensees can stock one cask ale out of tie from a brewer producing less than 15,000 barrels per year.

The tenant gets the beer from the microbrewer, but it goes through Brulines' systems to ensure no more than the agreed amount is sold. Pubs would be set a minimum target for selling Charles Wells beers and must pay the corkage to the company.

Charles Wells Pub Company managing director Anthony Wallis said participating pubs would be required to be Cask Marque accredited, have at least four hand-pumps and ideally sell a firkin of ale every three to four days.

"They've got to be able to convince us they are competent and experienced in managing cask beer.

"This is for people who have cask beer as a unique selling point for their business. We are saying to people that you need to prove consumer demand is there."

Wallis said it requires less administration than the Society of Independent Brewers' Direct Delivery Scheme and unlike a standard free-of-tie option, the rent doesn't need to be revalued.

Wallis denied the move is in response to the Government's call for pubcos to offer a free-of-tie option.

He said the scheme has been running at selected sites for 18 months, prior to the Business & Enterprise Committee's damning report into pubcos and long before the Government demanded pubcos give a free-of-tie option by June 2011.

"The corkage agreement is consumer driven and not to do with the tie. It's to make sure the pubs can compete against the growing interest in microbrewers.

"It seems to work really well," Wallis said.

Charles Wells lessee David Green, of the Salisbury Arms in Cambridge, said he sells three nine-gallon barrels of out-of-tie beer per week under the corkage agreement.

A variety of free-of-tie ales are stocked at different times, allowing him to cater for different tastes. A cricket team that visits the pub will always drink JHB from Peterborough-based Oakham Ales, so he can stock this brand in particular.

"It's gone down really, really well here," he added. "It's given us the flexibility that is needed."