The Fair Pint Campaign

News: Fair Pint: Ted Tuppen is insulting the intelligence of publicans

17 March 2009

Today, the Fair Pint Campaign has commented on Ted Tuppen’s article in this company’s magazine Eagle Eye, which has recently being distributed to Enterprise Tenants. Fair Pint has said that the Enterprise Chief Executive is insulting the intelligence of publicans by urging them to sign up to the BBPA’s Axe the Tax Campaign.

Responding to the article Steve Corbett a member of the Fair Pint Campaign said:

“Ted Tuppen is really insulting the intelligence of publicans by posing a defender of the pub trade and laying the blaming for all the problems faced by the sector at the Government’s door.

“It is clear that the way in which his and the other ‘pubcos’ are operating is the main cause of the problems faced by the sector.”

“He is claiming that the Government is taking 33% in duty and taxes from each pint, but fails to mention the fact that his take from each pint is about £1.45 or nearly 60%, most of which is pure profit generated by their 100% plus mark up on free of tie prices.”

“Enterprise has increased their prices by over twice the rate of inflation since 2002. If he wants to pinpoint the culprit for the problems faced by the sector he should look at his own business and the way that Enterprise’s high prices and excessive rent demands are forcing many publicans to the wall.”

“It is clear that the Axe the Tax campaign is nothing but a smokescreen funded by the ‘pubcos’ and the brewers as a way to divert attention from the damage being done to the industry by the tie. If tenants want to do their bit to secure the future of the industry they should join our campaign."

ENDS

Notes to editors

Beer duty is currently equivalent to 36p a pint:

Price for an 11 gallon keg of Carling from Enterprise Inns and the Price the same keg would be available to a free of tie tenant

 

Price available to an untied tenant direct from Coors

Price at which Enterprise Inns sell to tied tenants

11 gallon keg

£63.11

£128.00

Price per pint

£0.72

£1.45

Duty

£0.36

£0.36

Enterprise Inn’s price increases since 2002

Brand 
2002 price
pint 2009 price
pint % increase
Heineken
£1.09
£1.67
53%
Stella Artois
£1.15 (5.1% ABV)
£1.55 (5.0% ABV)
34%
Hoegarden
£1.30 (5.0% ABV)
£1.82 (4.8% ABV)
40%
Boddingtons Draughtflow
£0.88 (3.8% ABV)
£1.35 (3.5% ABV)
53%
Banks Bitter
£0.88
£1.22
38%
Greene King IPA 
£0.86
£1.25
45%

The increases shown are made worse when you consider that in many cases the ABV is reduced thereby reducing the duty paid. 

The average rate of inflation per annum across the same period, excluding mortgage interest, was 2.84%, giving a compound rate for the period from 2002- 2009 of 21%.  Price increases in the sample of brands shown demonstrate and average increase of 43.8%; constantly twice the rate of inflation.

Duty on a pint of beer has increased by 7p from 29p to 36p (24%) in the same period. 

To arrange interviews or for further information, please contact Andrew Smith at Connect Public Affairs on 020 7222 3533 or info@fairpint.org.uk.

 
 
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