The Fair Pint Campaign

News: Financial Times questions pubco business model

9th August 2008

The weekend FT highlights the views of tenants who say that beer ties are forcing them to buy beer at above-market prices.

The Fair Pint Campaign is quoted as describing pubcos as "simply property companies" and "middle men in the supply chain". The article questions the ability of tied pubs to compete effectively - citing examples of pubcos charging £125 for a keg of Calsbery larger, against the £80 charged by independent wholesalers, or the even greater savings available for pubs buying directly from the brewers.

The difficulties facing the sector have led some analysts to "question the robustness of (the pubco) business model" with the gloom surrounding these tenants leaving some analysts wondering how many more tenants may be in trouble?

Read the full article on the Financial Times website:

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