Lessee to stop selling lager in protest against Punch
Kevin Banks of the Sweet Green Tavern in Bolton said he will no longer buy lagers from Punch, despite the fact he sells over 100 gallons of the drink a week and it accounts for half of his turnover. The pub is not tied to any other products.
Undisclosed damages were awarded to Banks in November, after the Pubs Independent Conciliation & Arbitration Service found that Punch committed breaches of its code of practice in its dealings with him concerning rental issues allied to delays and poor communication.
Banks said since winning the case Punch has enforced the terms of his contract that state he must purchase all lagers from the pub company. Banks said there was previously a “verbal agreement” he only had to buy four lagers from Punch and he has been selling two additional lagers from wholesalers for the past five years without repercussion. A Punch Taverns spokesman said the pubco is looking to resolve the issue "amicably".
New drinks offer
Banks admitted that the pub’s diminished offer has caused concern among staff, who are worried about losing their jobs, and some customers but said most regulars said it would not make a difference as it is known as a cask ale pub.
He said he is “unsure” whether the pub will run at a loss as a consequence, but predicts 80% of his current customers will stay and he will gain some new trade as well.
“The contract states we have to purchase any lager from Punch but nowhere does it say we have to sell them. Now we will only stock bitters, stouts, ciders, wheat beers and rice beers. I don’t like being backed into a corner,” he said.
“We used to sell a lager at £2 a pint and now have a bitter for £1.80. One regular who has been drinking Stella for years was absolutely horrified when I told him but when he tried my cask ale he came back beaming.
“I’ve worked out with the money I have in the bank I could last without selling lager for at least three more years, if I don’t make a profit.
“But it’s not a negative thing – I think a lager-free offer at a pub is a step towards the future.”
He said he is hoping Punch will agree to let him go free of tie at his next rent review in 2016.
'Misunderstanding'
A Punch Taverns spokesman said: “Having looked the agreement, it has become apparent that the terms of the Mr Banks’s contract are not being fulfilled. We believe that this is a misunderstanding and so have requested Mr Banks begins to adhere to the terms or provide evidence to support his view of his tie arrangement.
"To date, we have received no evidence to contradict that in the deed of variation signed by Mr Banks in 2010. We have not instigated any penalties or action against Mr Banks in relation to the obligations of his contract and would rather resolve this amicably.”
