Landlords will be able to buy their beer on the open market...

[Superphil]

It's a traditional tactic sadly. Buy a pub as a 'business', then apply to bulldoze it and build houses for mega-profit. Fail, intially in the face of local opposition. Run pub into the ground, with crap management and no spend on maintenance, so that it becomes unviable as a business. Close pub. Apply again to bulldoze it.

#wankers

That explains what happened at the E&C almost perfectly.

On the plus side, the owners of a free house , the White Lion, near to us tried to close the pub and de license it for development, and they were refused. They did get a couple of bungalows in the garden, but they had to reinstate the pub, which they sold, and now is a cracking place with good beer and very good food.

 

[BensGrandad]

As per the Monopolies Commission report in the mid 80s which stated that brewers couldnt brew beer and own more than 1200 pubs, this meant increased rents. The same will happen now; the brewery trade is the only one that works on the principal that if we sell 1 million pints at £1 it makes £1m but if the sales drop to 500k we must charge £2 a pint to get the same money. Any other business would look as to why the sales had dropped and act accordingly.

 

[Gullflyinghigh]

It opens the door for decent ciders* available on tap in every pub

*Not Strongbow, or those foul fruity concoctions that have the temerity to call themselves 'Cider'.

Devon Red for all!

 

[BensGrandad]

It opens the door for decent ciders* available on tap in every pub

*Not Strongbow, or those foul fruity concoctions that have the temerity to call themselves 'Cider'.

Wont make any difference because most pub leases tie excluded cider. The criteria for buying it was the wholesale price and supply.

 

[Geestar]

Hopefully no more extra cold Guinness!

 

[BensGrandad]

Hopefully no more extra cold Guinness!

This was brought in by Diagio as Guinness sales were dropping drastically as young drinkers wanted cold beer so they brought this in to accomodate those drinkers, the failure would have meant the end of Guinness.

 

[Goldstone1976]

The brewing industry and their tied pubs are not a subject I know much about, tbh. Does NSC have any publicans who can comment on today's news?

 

[BensGrandad]

I have given my views as has Piltdown Man as ex publicans are there any current Enterprise or Punch leasees who are on here now.

 

[s5.bha]

the brewery trade is the only one that works on the principal that if we sell 1 million pints at £1 it makes £1m but if the sales drop to 500k we must charge £2 a pint to get the same money. Any other business would look as to why the sales had dropped and act accordingly.

Thailand runs it's tourism industry on this chain of thought !

 

[Official Old Man]

So the Pub Co is going to lose say £30,000 from a pub. Do you think they'll just shrug their shoulders, no way. Right now they are thinking of a way to get that money out of the landlord.

 

[BensGrandad]

Rents will go up even more and if pubs close sell off the property easy answer for them but will not help leasees.

 

[PILTDOWN MAN]

Rents will go up even more and if pubs close sell off the property easy answer for them but will not help leasees.

You're right therefore there has to be some recourse for the tenant in setting the price. There has been a cartel for years in regards to the price of wet supplies to the tenants the pubco's however will point to the lease and its condition. They have based their whole argument on the leases they have though acted so underhand I only hope ill on their companies.

It's time for the corrupt companies to suffer, I for one wont be losing sleep over them.

 

[BensGrandad]

The full repairing lease and upward rent reviews only are classic examples of the cartel they operated. As they increased my rent in Guildford I argued that a student nurses department with 500 students and St Lukes hospital closed and as Piltdown says they couldnt reveiw my rent because 'the lease didnt allow for a reduction' although my ability to earn and the possible number of customers reduced.

I too hope they lose many court cases and hopefully go broke.

 

[BensGrandad]

On the tip of my tongue what is it called when about 1000 publicans contribute and I case is taken against the pub cos. Somebody help please. ? action.

 

[AZ Gull]

On the tip of my tongue what is it called when about 1000 publicans contribute and I case is taken against the pub cos. Somebody help please. ? action.

Class

 

[Surrey_Albion]

I had one pub with shep neame I could (against my tie to them) buy their beer cheaper from independent companies than directly from them it, which means shep meame sold to suppliers allot cheaper than they did the pubs they had tennants in, it was a joke!

 

[BensGrandad]

Class

Thats it cheers.

 

[BensGrandad]

I had one pub with shep neame I could (against my tie to them) buy their beer cheaper from independent companies than directly from them it, which means shep meame sold to suppliers allot cheaper than they did the pubs they had tennants in, it was a joke!

Easy for brewers to stop you buying from wholesalers just agree not to sell to them. If you wanted Foster you would have to buy it from Scottish Courage as was. It was easier for them to sell to the wholesalers and if you broke the terms of your lease buying from other sources penalise you.

 

[crookie]

With my brother we are Enterprise Lessees of a pub in Central London, this is unbelievable news. If the pubco's shares have taken a hammering it's because they know this ruling will screw their business model, which is to cream the profit out of pubs with extortionate beer prices whilst pretending that we are paying a below market rent. £6000 per month for a pub that can fit 50 people in max !!

Pubco's are basically nothing more than property companies, middlemen taking the vast majority of the profit from a pubs operations. I think they may have seen the writing on the wall, they actually reduced our rent at our last review, and we bought out of bottled beer tie for a pittance. Draught is where it's at of course though, with 50%+ of sales, so to be free of tie will be fantastic, we can get in what we want, and hopefully have the ability to actually reduce prices. I think the below quote is of huge importance, as it means they won't be able to massively increase rent to compensate, and we will actually be able to see what the market rent is, and operate on a much more level playing field with free-houses.

"Mr Mulholland claims that the average tied rent is now higher than the rent paid by non-tied tenants meaning, he says, that tied tenants are "being overcharged twice".

The new rules mean that a tied tenant of a large pub company, one which owns more than 500 pubs, would be able to have the amount of rent they pay independently assessed. This would happen when a rent review is due, or if there was a sudden change in circumstances, such as a rival pub opening nearby offering cheaper prices."

 

[Barrel of Fun]

Why don't brewera refuse to work for the evil pub companies?