FSB calls time on beer ties

Britain’s leading small business organisation is calling time on the beer tie imposed by pub companies (pubcos) on landlords.

An overwhelming majority of pub trade members (94%) of the Federation of Small Businesses, (FSB), said in a survey that exclusive purchasing obligations between pubcos and landlords should be scrapped while 99 per cent said little has improved since the situation was last reviewed in 2004.

Submitting its response to the latest inquiry by the Business and Enterprise Committee, the FSB this week warned that tying pub landlords into certain products is damaging their livelihood and called for a fairer rent review process.

Clive Davenport, FSB Trade and Industry Chairman, said:

“Pubs are not just a part of the local community, in many places they are the local community. They generate employment, local income and an opportunity for people to meet.

“However, 27 pubs are closing down weekly and FSB members give testimony upon testimony how difficult it is to survive in the pub business today.

“Pub landlords often pay up to double the price for beer and cider, than they would if they were buying in a free market. If the ties were eradicated this would create a level playing field to enable pub landlords to compete with those who are not tied.”

ENDS

Notes to Editors

The FSB is Britain’s biggest business organisation with over 215,000 members. It exists to protect and promote the interests of the self-employed, and all those who run their own business. More information is available at www.fsb.org.uk

For a full copy of the FSB’s evidence to the select committee email Ulrika.diallo@fsb.org.uk

The FSB surveyed members in its pub trade category in an online poll between September 8th and 15th 2008. This amounted to over 1,000 publicans.

The new Business and Enterprise Committee inquiry can be viewed at www.parliament.uk/parliamentary_committees/berr/becpn46.cfm

Contacts:

Stephen Alambritis: 020 7592 8112 / 07788 422155
Prue Watson 020 7592 8121 / 07825 125695
Marc Shoffman 020 7592 8113 / 07595 067068

For regional FSB contacts please go to www.fsb.org.uk/regions