Big pubcos are 'unwieldy beasts'

Big pubcos have become "unwieldy beasts" who don't care for their tenants and have dragged the industry's name down — that's the broadside fired by one family brewer.

Fergus McMullen, tenanted trade director at McMullen & Sons, launched the attack as his company unveiled its new code of practice, which doubles the industry standard cooling-off period from six to 12 months.

It is the latest sign of division between the larger pubcos and the family brewers, who feel they have been unfairly lumped together with national pubcos.

He said McMullen was "dragged kicking and screaming" to the code of practice table. "I was averse to signing up because I know I run my pubs well," he said.

"We have never been to arbitration, I know my tenants' families. If there is a problem they can come and see me. That's impossible with the pubcos."

McMullen blamed the pubcos for bringing the threat of Government intervention.

"The big pubcos are the reason we are here," he said. "The last thing we want is the Government back in the industry — it ruined things with the Beer Orders. In the end the Government has itself to blame as the pubcos took advantage of a market created for them.

"They have become an unwieldy beast through lack of management. The model of the big pubcos has not cared about the tenants."

McMullen praised the code of practice accreditation scheme as "first class". He said: "It has been good for us to look at our own set-up and polish it."

McMullen said the company had decided to take "less of the profit cake" over the past couple of years by holding rents where possible to ease tenants' cash flow.