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Hereford HOPVINE Hereford H OPVINE The Newsletter of the Herefordshire Branch of CAMRA Issue No 56 Christmas 2014 Free Wnter Pub of the Season: the Chase Inn, Upper Colwall Historic vote welcomed by CAMRA Brewery, pubs and steam weekend in Sussex Herefordshire Pub of the Year MPs VOTE FOR FAIR DEAL FOR PUBCO TENANTS NEW HEREFORDSHIRE BREWERY HEREFORDSHIRE PUBS OF THE YEAR PUB CAMPAIGN NEWS WHAT’S IN YOUR BEER OR CIDER? A WALK ON BROMYARD DOWNS LATEST BEER, CIDER & PUB NEWS 1 2 PARLIAMENT VOTES ON PUBCOs PUBCOs LOOK SET TO REAP THEIR OWN HARVEST PubCo share prices dip heavily as an historic Parliamentary vote moves closer to giving PubCo tenants (and pub-goers) a fairer deal Nobody likes a bully. Unfortunately, the big pub-owning companies (known as ‘PubCos’) have been pushing many of their pub tenants around for years now. You only have to glance at the on-line blogs in the trade to see how many unhappy PubCo tenants there are out there. PubCo tenants’ businesses are regu- larly characterised by chronic underinvestment in the pub’s fabric; high rents; high wholesale drink prices, and a restricted choice of beers (Oh No, not Doom Bar again!). This sees pubs ers had left the pub on its knees by 2012. No- close, as different tenants come, fail and one could make the pub work for owners, leave. There can’t be a high street in the UK Punch Taverns. Ultimately Punch decided to that hasn’t had a PubCo pub boarded up wait- sell-up. Bravo! the locals thought. However, ing for a new tenant to arrive (and depart) in one should never be surprised to find a the past few years. It’s got to the stage where (financial) sting in the tail whenever dealing the PubCos should give long service awards with a PubCo. Not content with letting the for their tenants who manage more than place be run into the ground, Punch Taverns twelve months behind the bar. What a mess! then submitted plans to build a four-bedroom executive house on part of the pub’s garden Grossly indebted, due to a mad pub acquisi- and car park, before hoping to sell the rump of tion spree prior to the ‘Credit Crunch’ in 2008, what was left. They weren’t the slightest both- the PubCos seem to see it as their corporate ered that this would probably undermine the duty to milk their tenant publicans of every last pub’s future trading potential and likely deter penny - all in a desperate effort to dig them- buyers. So what if it permanently closes? selves out of a near-impossible financial hole. We’ve got our cash. It is widely regarded that the current Pubco ownership model is not sustainable in the Thankfully, the locals in Lyonshall - with a little longer term. With this ‘broken’ business help from Herefordshire CAMRA - put pay to model, too many pubs struggle to compete this shabby and cynical asset-stripping (due to high rents and high wholesale drinks scheme, which was stopped dead in its tracks prices), and ultimately many close for good. when planning consent for the house was And if this isn’t bad enough, the PubCos are refused by Herefordshire Council planners then quite content to sell pubs to the likes of earlier this year. Finally sold to a local individ- Tesco, irrespective of whether or not another ual in the late summer, the Royal George is operator might be interested in taking them now being fully refurbished (including a new on. Consequently their legacy is a miserable roof) and will soon be re-opened, fighting fit footprint of closed pubs across the cities, and back at the heart of its village community towns and villages of our nation. Something again. And from now it is intended to be run as has to change. an independent and sustainable business. By George, it’s a right Royal rip-off PubCo Self-Regulation - possibly the world’s unfunniest joke You only need to look at the recent case of the Royal George Inn at Lyonshall to see what By the end of 2012 the PubCos had been in PubCo ownership can do to a decent pub. the Government’s ‘last chance saloon’ for Years of physical neglect and a quick succes- longer than most people can remember. Our sion of here-today-gone-tomorrow leasehold- legislators in Westminster were keen to see 3 PARLIAMENT VOTES ON PUBCOs more transparency and fairness from the Chairman of the All-party Parliamentary PubCos on the matter of how they set and Save the Pub Group, and an ardent cam- reviewed their pub tenants’ rents. However, paigner for pubs and those who run them, the response from the PubCos had been up he sought to include the MRO for PubCo to this point to offer only self-regulation. tenants within the new Statutory Code. But Once this had proven as ineffective as the this time, the amended MRO proposition banks’ laughable so-called self-regulation, could only be adopted by a tenant when a the Government then elected to act deci- PubCo lease is altered or expires; a rent sively. They announced earlier this year that review takes place, or a pub changes hands. they would introduce a Statutory Code of It would also exclude all operators that own Practice covering the matter of PubCo rents. less than 500 pubs, thus protecting the inter- This included an independent adjudicator for ests for all our small and family brewers. resolving rent disputes. The big PubCos So, what would happen if this amendment weren’t very happy, but then in November were passed and made into law? The good this year things took a turn for the worse for news is that many PubCo tenants would be them - a lot worse. able to have their rent reviewed independently The Government had previously decided not and opt for the MRO. Thus they would be free to include in the Statutory Code a suggested to buy their beer wholesale from a supplier of clause allowing pub tenants a Market Rent their choice. This would bring to an end the Option (MRO), where a pub tenant could buy need to buy all of their beer from their PubCo their beer from whomever they wished (at landlords, who heavily load value on to each likely much lower prices). However, as the barrel sold. As a hypothetical example, this Statutory Code was progressing through would mean a tenant buying beer at a price committee stage in Parliament, an amend- closer to £75 a firkin (nine-gallon barrel) rather ment was tabled by Greg Mulholland MP. than the PubCos’ bargain basement £120. That’s a considerable saving and you would expect some of that saving to be passed on to the consumer – i.e. the average pub-goer. Jackpot! The fight-back can now begin CAMRA was delighted when the amendment was unexpectedly passed by a vote of 284 v Fancy a Pub with 269 in a lively debate in the House of Com- mons on the 18th November - a date that Real Food a Real Fire may yet become an historic day for our na- tion’s pubs. Many CAMRA members had and 5 Real Ales written to their MPs supporting the proposed at the Weekend ..... amendment, and judging by the support across all political parties, this campaigning action undoubtedly helped. Perhaps now the ... then look no further than great British pub can really start to fight back? The Rose & Not so delighted were the big PubCos, whose share prices fell by 17% in a day. Crown Equally joyless was the response from the incongruously named British Beer & Pub Tenbury Wells Association (BBPA). Shameless cheerlead- 01584 811336 ers for the greedy PubCos, you could be forgiven for thinking the initial ‘P’ in their title www.whites.cc actually stands for ‘PubCo’ rather than ‘Pub’! 4 PARLIAMENT VOTES ON PUBCOs End of Martian Civilisation for PubCos “This is great news for small breweries and None other than BBPA Chief Executive her- pubs. Pubs will now become a lot more com- self, Bridgid Simmonds, led a shrill chorus of petitive. It will put the initiative back in the panic and outrage, suggesting this change hands of the people who really run our pubs amounted to little short of the end of civilisa- – the landlords and landladies. Every publi- tion as we know it. Ms Simmonds was can knows best how his or her pub business quoted on radio saying that it would lead to works, and this freedom might now provide pub closures. Really, Bridget, dear? Where the incentive for them to finance improve- have you been for the past ten years? Living ments that so many pubs are desperately on Mars? Have you not noticed many thou- crying out for.” sands of pubs have ALREADY closed? And, by the way, it’s your PubCo chums who have It is now time to wait to see how this Statu- been responsible for closing many of them tory Code is fully implemented into Law. down. Conveniently, she omitted to mention Back in 1989 everyone got over-excited by research by the independent Federation of the Government’s now-infamous Beer Or- Small Businesses indicates that this meas- ders, which in seeking to increase the avail- ure would encourage much-needed invest- ability of guest beers ultimately created (as ment in our pubs. an unintended consequence) the PubCos. Pub landlords in charge That said, early emerging views are that - that makes a refreshing change there isn’t an easy route out of this for the It was time for Herefordshire CAMRA to speak PubCos, but don’t write them off too soon.
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