Spirit lessees 'in the dark' as Greene King moves to buy pubco

13-Nov-2014 - Last updated on 13-Nov-2014 at 08:54 GMT

Licensees are concerned about the potential impact on their drinks offer

Spirit Pub Company lessees claim they are in the dark over whether Greene King’s proposed takeover will have an impact on their rent and product agreements.

Licensees told the Publican’s Morning Advertiser (PMA) they have not received any direct communication from either pubco regarding last week’s agreement, which would see Greene King acquire Spirit for £773.6m to create a 3,127-
strong pub company.

Both pubcos are also remaining tight-lipped on the finer details of the deal — hailed as “transformational” by Greene King boss Rooney Anand — and what it might mean for those in Spirit’s c430-strong leased estate.

Speaking on the day the agreement was announced, Anand said the company would continue to “trim the tail” of its tenanted estate, but there were no plans for an increase in churn.

Spirit lessee Paul Mackay, of the Queen’s Head in Nutfield, Surrey, said he only found out about the agreement from a PMA story.

'In the dark'

“We’ve heard nothing. We’re completely in the dark about it,” he said. “I have no idea whether we’ll come under the Greene King umbrella or whether we’ll still be Spirit, but parent-owned by Greene King.

“If we’re going to become part of Greene King then we’ll be competing with several other [of their] pubs in the same area, which will possibly have the same products and the same business outlook. Spirit has a very large drinks list but we could end up having to sell Greene King products which are quite limited on ales. It could make a huge difference to our business.”

Lorraine Wager, of the Hart of Duston in Northampton, said she “hasn’t got a clue” what the agreement would mean for her. “It would be nice to know what’s happening. I asked my area manager but even he doesn’t know what it will mean,” she said.

Peter Wilton-King, of the Grange in Moreton, Merseyside, said communication with his business relationship manager had been limited.

“I was told that if the deal went ahead it shouldn’t make any difference to my contract, but I’ll have to wait and see. I get virtually all my products through Spirit. Hopefully I will be able to continue selling the same beers,” he said.

'Confident'

However, some of the pubco’s lessees were more upbeat about the agreement.

Dexter Cook, of the Dog & Partridge in Warrington, Cheshire, said: “At the end of the day I have a legal agreement. I imagine Spirit will let us know in due course, but I won’t be losing any sleep.”

Dan Shotton, managing director of Redcomb Pubs, which runs two Spirit sites, said: “I’m confident that Greene King won’t do anything that will materially affect the terms of our leases or be detrimental to the business — our two Spirit sites are amongst the largest profit contributors in its estate.”

Spirit Pub Company and Greene King both refused to comment on the implications of the deal on lessees’ agreements when contacted by the PMA.