E-Malt.com News article: UK: Scotland’s brewers call on Government to end controversial beer ties for pubs

Some of Scotland's most prominent brewers have called on the Scottish Government to adopt new English legislation that will end the controversial beer tie for tenanted pubs, The Herald reported on December 12.

In a letter sent to ministers in Edinburgh, owners and executives from regional brewers Williams Brothers, Stewart Brewing, Cairngorm, Inveralmond, Deeside, Harviestoun and Fyne Ales argue alongside Glasgow's WEST and Tennent Caledonian Breweries (TCB) that the independent pub market in Scotland will be transformed if tenants are free to buy products on the open market.

Paul Waterson, chief executive of the Scottish Licensed Trade Association (SLTA), is also a signatory.

The letter comes after MPs voted to end the beer tie - a convention where the tenants of major pub companies are tied to buying beer from their landlords - under an amendment to the Small Business, Enterprise and Employment Bill in November. The amendment will also allow tenants to seek open market rent reviews.

Describing the proposed legislation, expected to be passed by the House of Lords next year, as "crucial" to the future of British pubs", the letter implores minister to introduce the new rules at Holryood.

The legislation as it stands applies to pub companies with more than 500 outlets in England and Wales.

"This change will not only free up the market for smaller businesses like ourselves to sell products more openly, it will also give pub operators the opportunity to compete more directly and more fairly with larger pub chains," the brewers state.

"The public are often frustrated when unable to get the beer of their choice in their local pub. They don' understand that the landlords' hands are often very tied."

While independent brewers and licensees have embraced the legislation, it has provoked an angry response from major pub companies, including Belhaven owner Greene King, Punch Taverns and Enterprise Inns.

They argue that the vote effectively reneges government policy on the issue, with UK ministers having previously decided to maintain the beer tie following a lengthy investigation of the pub company market, and claim it could cost thousands of pub closures and job losses.

But the letter signatories claim removing the tie will allow pubs to run their businesses more efficiently and improve the service they offer customers, ultimately safeguarding jobs and investment.

"Scotland's licensed industry is crying out for a change, allowing quality, locally produced beer to gain a foothold in regional markets, which we are currently excluded from due to major distributor stocking policies," the letter says.

"This will result in a far more interesting and profitable line up of beers for entrepreneurial leaseholders - a good thing for producers, publicans and, ultimately, the public.

"It would be grossly unfair if Scottish tenants were left out of these new arrangements."

As well as calling for parity on the beer tie between Scotland and the rest of the UK, the letter calls for a further change to the proposed Westminster legislation.

While pub tenants are currently entitled to stock one "guest ale" out of tie, the signatories want this to be extended to all types of beer, ale and lager.

They state: "The brewing industry in this country is enjoying a renaissance and it seems entirely absurd that legislation in 2014 does not give the same protection to lager and beer as that offered to the ale breweries."


12 December, 2014