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Hertfordshire's 1 HERTFORDSHIRE’S Pints of View The bi-monthly publication for every discerning drinker October / November 2019 Circulation 8750 No. 297 A brand new brewery for Hertford North Herts CAMRA does a tour of Royston Photo: Magnus Manske -From Wikimedia Commons free media repository https://commons.wikimedia.org/wiki/File:The_Manor_H ouse,_Royston.jpg Herts Cider Pub of the Year South Herts CAMRA branch awarded to the Queen’s takes a trip to Fuller’s iconic Head, Allens Green Chiswick brewery 2 THE BITTER END Greene King Sold ub group and brewer Greene King agreed a Hanson’s, had led to the loss of £2.7bn sale to Hong Kong real estate firm CKA classic beers and the closure Pat the end of August with shareholders of the breweries that receiving an incredible pay out of 850 pence per produced them. There share (it was previously trading at 561 pence). were also complaints Greene King is over 220 years old and is the UK's that Greene King, who moved production to their biggest pub owner with around 2,700 retail outlets Bury St Edmunds brewery, tinkered with the recipes across the country. Both boards are unanimously and lowered the gravities, whilst giving the recommending acceptance of the bid but the EC also impression that the beers were still produced at the has to give its approval which it appears will be original breweries. forthcoming. Greene King IPA, again much to some members’ CK Bidco is a limited liability company incorporated dismay, won CAMRA Champion Beer of Britain in in the Cayman Islands, registered in Hong Kong, and 2004, but this of course is all in the past. listed on the main board of the Hong Kong Stock What is Greene King’s future, will we see a cull of Exchange. CKA has invested previously in the UK pubs, will leasees get better deals from the new pub sector and owns a small portfolio of freehold owners? Having owners based in Hong Kong rather pubs, all leased to the Greene King Group. than Suffolk somehow does not bode well. Greene King’s own substantial property estate and financial solidity were other attractions for the buyer and the deal should be completed in the fourth CAMRA responds to quarter of 2019. Government review of Pubs GK Chief executive Nick Mackenzie added: “Greene King has a well-invested estate in prime locations, Code leading brands, a rich history and a talented team of n May, the Government announced that they around 38,000 people serving millions of customers would be proceeding with the statutory review of across the country every week”. Ithe Pubs Code and Adjudicator. The consultation The deal adds to the UK businesses that are part of period for the review has now closed. the sprawling global empire controlled by Li Ka- As a part of evidence gathering for the CAMRA shing, a 91-year-old multi-billionaire who also owns submission to the consultation, the Campaigns Team pharmacy chain Superdrug and mobile operator launched a survey of tied tenants using email Three. addresses in the WhatPub database. The survey This is the second time this year that a time-honoured received over 400 responses. British brewer has been bought by an Asian buyer, This followed CAMRA calling for urgent reform of after Fuller’s was sold to Japanese drinks giant Asahi the Pubs Code of practice from the Government to for £250m. help tied pub tenants. There been a surge in the popularity of the brewer’s The survey of tied pub tenants in England and Wales flagship beer Greene King IPA in mainland China has revealed significant failures in the Pubs Code, after President Xi Jinping was pictured drinking a pint which governs the relationship between tenants and of the brew with then prime minister David Cameron large pub-owning companies. CAMRA campaigned during a state visit in 2015. for nearly a decade for a Pubs Code to be put in Should we have seen this coming after Rooney place, but the survey has revealed it is currently Anand stood down as Greene King’s Chief Executive failing tenants. We now call on the Government to in April 2019? Anand, 54 had spent fourteen years in act to protect tied licensees. 75% of tenants reported the post and had doubled the Greene King tied estate that they don’t think they are treated fairly and with the latest acquisition of Spirit Inns from Chef & lawfully by their parent pub companies, whilst 73% Brewer, and trebled sales to £2.2 billion since he felt that they were worse off than a free of tie tenant. took over in 2005. Furthermore, one in five tenants who have legal A lot of people, especially in the Campaign for Real rights under the Code were completely unaware of Ale (CAMRA), did not like the way Greene King had the Market Rent Only option - an important become the UK’s biggest brewer. Takeovers going component of the legislation that allows them to buy back to Rayment’s and Ruddle’s in the 1980s and beer on the open market. Nik Antona, CAMRA included Ridley’s, Morland, Morrell’s, Hardy’s & National Chairman said: “We wanted to gain an 3 THE BITTER END accurate picture of the views of tied licensees in England and Wales. The Pubs Code Adjudicator currently relies on pub companies to audit licensees’ opinions, which we believe has skewed responses. “It’s clear from our survey that there are significant failures with the current Pubs Code. With a new Prime Minister and Cabinet, the ongoing Review is the first chance for the new Government to show that they will be taking positive action to support tied pub tenants and consumer choice. The results of the CAMRA survey have been submitted to the Government to feed into the much-anticipated review of the Pubs Code. Any interested parties can read the full submission on the CAMRA website at: https://www.camra.org.uk/campaign_resources/poli cy-submission-to-the-pubs-code-and-adjudicator- statutory-review/ . If you support CAMRA's position on this, why not write to your MP drawing their attention to CAMRA's consultation submission? Hertfordshire’s Pints of View is produced by the Herts & Essex Borders, North, South Hertfordshire and Watford & District Branches of the Campaign for Real Ale (CAMRA). Views expressed are not necessarily those of the editor, CAMRA Ltd or its branches. 4 Brewery and Beer Industry News recommendations to Long live the Local - Why to Cut stop businesses rates the Beer Tax "crippling" the industry. n October 29 th 2018, the Chancellor of the It has also been signed Exchequer listened to 116,000 pub goers by UKHospitality, the Oand announced a beer duty freeze. This was British Institute of a positive move and shows that the Government Innkeeping, the British recognises the social, cultural and economic Beer and Pub importance of local pubs. The decision not only Association, and the provided some of the much-needed support for local Brighton and Hove pubs and the communities they serve, but it will also Licensees Association. protect over 3,000 jobs. The letter reminds Mr Berry that pubs are paying 2.8 However, the Government has year-on-year RPI per cent of the business rates bill despite representing linked increases to Beer Duty planned, so signatures only 0.5 per cent of the total taxable turnover. on the 2019 petition are essential to ensure the freeze Licensed premises simply cannot afford the current wasn’t a one-off action and that the Government system to continue and doing so risks the loss of a continues to protect our valuable pubs and national icon - the great British pub. breweries. A change to the way business rates were calculated So why cut beer tax? The simple answer; in the UK, in 2017 meant many pubs around St Albans faced a beer is overtaxed. dramatic hike - the Blacksmiths Arms saw an The UK has one of the highest Beer Duty (tax) rates increase of 82 per cent; the Beech House 59 per in Europe, and is three times the EU average. The cent; the Boot 280 per cent; Dylans 32 per cent; Ye government collects £3.5 billion every year in Beer Olde Fighting Cocks 60 per cent; and the Six Bells Duty, as well as almost £10 billion in other taxes on 87 per cent. The same sizes of increases were pubs and brewers. Today one in every three pounds imposed across the rest of the county and the spent in pubs goes to the taxman country. Along with Business rates and VAT, Beer Duty is The letter asks Mr Berry for the rates multiplier to be putting pubs under enormous pressure; every day reduced, a digital tax to be introduced, and a growth pubs are closing their doors for good. accelerator to be encouraged similar to a policy in And it’s getting worse. Scotland. The government increased Beer Duty in 2017 and It also asks for investment in the valuation office, froze it in 2018. With year-on-year RPI-linked which set the new rates and more transparency in its increases planned it’s likely that Beer Duty will methods. The letter asked for an extension to the increase by at least 3% every year for the foreseeable retail discount, which currently only operates for future. sites with a rateable value of under £51,000. The last time Beer Duty increased year-on-year was Co-chair of Save St Albans Pubs, Mandy McNeil, between 2008 and 2013 when the government put a said: "With Brexit and the potential for a General Beer Duty escalator in place.
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