D ON ON L August Vol 31 Sept No 4 2009 The Princess Louise, High Holborn (see page 38) Editorial London Drinker is published by Mike Hammersley on behalf of the London Branches of CAMRA, the NDON Campaign for Real Ale Limited, and O edited by Geoff Strawbridge. L Material for publication should preferably be sent by e-mail to [email protected]. Press releases should be sent by email to Tony Hedger, [email protected] Changes to pubs or beers should be reported to Capital Pubcheck, 2 Sandtoft Road, London SE7 7LR or by e-mail to [email protected]. For publication in October 2009, please send electronic documents to the Editor no Tired and emotive? later than Wednesday 16th September. SUBSCRIPTIONS: £3.00 for mailing of s you will see from the opening their efforts to do that are all the 6 editions or £6.00 for 12 should be sent Asection of the News Round-Up more worthy because they don’t to Stan Tompkins, 52 Rabbs Mill House, column, the tied house system has get much out of it. Most managers Chiltern View Road, Uxbridge, become news and, as they say in are on relatively low salaries Middlesex, UB8 2PD (cheques payable to CAMRA London). Private Eye , ‘ this one will run and augmented by bonuses that their ADVERTISING: Peter Tonge: run ’. I thought that some general employers try to find cunning ways Tel: 020-8300 7693. comments might be useful to the of not paying , and managing a Printed by Cliffe Enterprise, wider London Drinker readership failing pub is not the soundest of Eastbourne, BN22 8TR accordingly. I am sure that there career paths. A lot of pub Views expressed in this publication are are some readers who are more managers that I have spoken to those of their individual authors and are expert on the subject than I am over the years have said that their not necessarily endorsed by the Editor or the Campaign for Real Ale Limited. but , with all due respect, this is not aim is to get their ‘own ’ pub. The intended for you although your manager of one recently sold Advertise in the next comments are of course welcome . Punch outlet told me that he was LONDON DRINKER Our advertising rates are as follows: This is not just an internal trade glad to be working for a brewery Whole page £300 (colour) matter; real ale drinkers are again. £240 (mono) affected by what happens to pubs The tie has been with us for as Half page £180 (colour), £135 (mono) more than any others . One way or long as I can remember and Quarter page £95 (colour), £70 (mono) Phone Peter Tonge now on another, the way that the tie works twenty-five years ago we probably 020 8300 7693 is going to have to change and gave it little thought because it was these are my purely personal so obvious: a brewery brews beer In this issue thoughts as to how I would like and owns pubs in order to sell that that to happen. beer. Although we might have New breweries 6 In this debate, one important loathed the ‘Big Six ’ for their News round-up 8 distinction needs to be made, that acquisition and closure of smaller between tenanted and managed rivals, at least they were brewers. Beer festivals 20 pubs. With a managed house, the By the way, can you name the Pubs of the Year 24 pub is part of the brewery or dreaded Big Six? (answer below). The Nightingale 28 pubco’s core business and what What we did not foresee was the goes on there is within that coming of the non-brewing pub- The Seven Stars 30 context. With tenants, the brewery owning company (or pubco). The Book reviews 34 or pubco has leased the pub long- creation of the pubcos was The Princess Louise 38 term to someone who is going to presented as an attempt to get run it as their own business but , around the Beer Orders back in the Branch diaries 40 importantly, not as a franchise. It is early 1990s but , given that the Letters 42 a property deal with add-ons. effect of having to stock one guest Capital Pubcheck 46 What I say below applies to real ale can only have been very tenancies because this is where the marginal, I have always believed Membership form 49 tie has the most detrimental effect that this was an excuse. By this The Land of Liberty 58 but that is not to detract from the time the big brewers were no Idle Moments 60 merits of pub managers. It is still longer just brewers but parts of down to them to make their conglomerates such as Imperial Crossword 62 particular pub work and , often, Group and Grand Metropolitan 3 Editorial and wanted to get a better return paraphrase George Orwell, ‘small abolish the tie overall – for both on their supposedly brewer good, pubco bad ’, but I breweries and pubcos? With no underperforming asset, their see a significant difference tie at all, all pubs will be at the pubs. They started to think like between the merits of ‘vertically mercy of the global operations property companies. integrated’ breweries and the and their heavily discounted, As regards the brewery tie, I pubcos. I am convinced that the mass-media advertised products. have no objection; indeed, I see tie should be abolished for We should remember that they advantages to it. CAMRA has pubcos . It strikes me as simply produce 80% of the beer made in never campaigned against the wrong that the same ownership this country and have the brewery tie ; our objection to the can charge publicans high rents financial muscle to offer big Big Six was that they owned and then restrict them to buying discounts and various other three-quarters of the country’s only beer that the pubco supplies incentives , and to fund colossal pubs . If small and regional and make further profits by advertising . We could end up breweries are to survive , they charging them substantially more with the situation that used to need guaranteed trade. The tied for that beer than they paid for it. exist in the Republic of Ireland house remains the obvious I know that the pubcos have to where there were, in theory, no solution here, especially as the make a profit – all businesses do – tied houses but , thanks to close relationship between but this goes too far. This is not a discount deals and loans for brewery and publican quite often fair market for either the fixtures and fittings etc, most creates some of our best pubs. publican or the customer. It is were under the control of Where we may have problems is not normal commercial practice Guinness. That might happen to with the bigger brewers such as and if a pub tenant has, in effect , the ex-pubco outlets anyway if Greene King and Marstons but bought his or her own business , the pubco is abolished, although I perhaps we will have to put up then they should be able to run it would hope that CAMRA with them for the wider benefits . like any other trader . In the end, members would be in there In any event, if any attempt to it must become self-defeating lobbying for choice. It may be control them was introduced, because these tactics only serve to that some sort of voluntary they would most likely just split inflate the prices that the agreement to modify the way in into smaller companies , as with publican must charge to stay in which pubcos operate is our best the Beer Orders. That said , you business and then comes the risk hope but sorry, I cannot feel can always find out who really of pricing customers out of the optimistic about this. owns them by following the pubs and going home via the The (understandably ) un- advice of the Watergate source, supermarket. Is it a surprise that named head of a regional brewery Deep Throat – ‘ follow the money ’. 38 pubs closed every week in was quoted recently in the One area that would need to 2008? I should add here that the Publican as saying , “The beer tie, be looked at is the price at which Government has not helped the when done properly, is a breweries sell beer to their situation with duty increases etc. franchise. When done badly, it is tenants. Whilst it is not Also, most people who want Landlord with a capital ‘L’ and unreasonable for breweries to to go into the pub trade can only tenant with a small ’t’. ” That offer discounts for bulk purchases get in by taking a pubco lease and about sums it up ; let’s enfranchise going to the free trade, you can the pubcos protect this position those who run the pubs that are understand how Greene King by such tactics as restrictive so important to us. The trade tenants felt when Wetherspoons covenants that stop pubs that meetings have begun and were selling IPA for a price below they sell outside the trade CAMRA is participating in that at which they could buy it continuing as pubs. This would them. Watch this space and from their own brewery. Price also apply to the managers with hope.. LD variation must be within ambitions mentioned above. Tony Hedger reasonable limits. Allowing a Alas it may not be that easy. guest beer might be an idea; a lot There is the major consideration The Big Six – using their London of small breweries already trade of the European Union trading names – were between themselves anyway.