Punch Takeover
‘Don’t be fooled’: SLTA slams Heineken’s ‘dismissing concerns’ on Punch bid
SLTA chief executive Paul Waterson has slammed Lawson Mountstevens’, managing director of Heineken’s Star Pubs & Bars, claims that his company will bring “passion, expertise and successful operating model” to Punch sites.
In an article in The Scotsman this week (Monday 9 January) Mountstevens explained that, if the deal between Punch and Heineken was approved, the Dutch company would only represent 6% of Scottish pubs.
But Waterson said: “Don’t be fooled. This is actually 200% growth compared to their current position and a worrying indication of what’s to come.”
‘Little regard’ for smaller pubs
Waterson also criticised the “global” brewer for its “little regard for local relationships” in smaller pubs.
He said: “In this fragile industry those local relationships matter. They can be the difference between a licensed premise staying open or shutting up shop.”
Waterson claimed that Heineken was likely to work closely with “the chosen few” city pubs rather than more rural sites, which are a main concern for Punch.
‘Barriers will certainly be in place’
Waterson claimed the Dutch company will place “barriers” in the way of other suppliers by imposing 85% of its products on Punch pubs, leaving “little room” for other breweries.
He added: “This will have a disastrous effect on consumer choice.
“The framework is clear — it’s restrictive, anti-competitive and will disadvantage home-grown producers.”
But, according to The Scotsman, Mounstevens said: “We have consistently said that we start with what is right for each pub, and we will work with licensees to ensure they have the right drinks offer to suit the specific needs of each pub.”
Waterson criticised the role of tied pubs, which he claims removes income from the Scottish economy, after Mounstevens spoke of Heineken’s “proud” contribution of approximately £370m to the Scottish economy if the deal is approved.
Waterson said: “I have spent every day of my working life in the Scottish licensed trade. I know it well and am dedicated to representing its best interests, without bias. Not everyone can say the same.”
‘Crystal clear’
A Heineken spokesman told The Morning Advertiser : “We stand behind the very detailed comments we've already made in relation to the SLTA's concerns.
“We spend around £20m a year on transforming all sorts of pubs within our current estate, working with a fantastic variety of licensees , including many community pubs that have seen a new lease of life and are now thriving. This strategy would continue if our acquisition were successful.
“On brand choice, again, we have made it crystal clear that we will work collaboratively with incoming Punch licensees to ensure that they have the right offering for their customers."
Last month shareholders such as Glenview, Avenue and Warwick all backed the Heineken/Patron Capital Partners bid, which was revised at 180p per share.
If the deal goes through Heineken would add almost 1900 Punch sites under its current 1,049 pub estate, making it the third largest pub company in the UK after Enterprise Inns and Greene King.
