Memorandum submitted by Bilgin Ersin
OFT failed to see the true facts and OFT also
fail to see that the consumers are paying higher for beer and
beer products in ALL PUBS and not just in leased and tenanted
pubs under the control of Pub Companies, because we have no later
alternative but to charge higher prices because of the very high
rent and we have to pay the highest prices for beer in the UK
Beer Market. See attached charts (not printed here). At
the same time, Pub companies like Whitbread and Weatherspoon know
all this and they market the beer they sell accordingly and just
below, hence making very large profits and the end result is,
customers paying more and more, and more leased and tenanted pubs
under the control of mainly Punch and Enterprise and others are
closing down.
I have no alternative but to charge higher than
free and managed pubs where the cost of the beer is not an issue
because all free and managed pay the lowest price for beer in
the UK Beer Market and they sell cheaper than leased and tenanted
pubs and they are very happy with the present situation.
If I can buy my beer cheaper, my selling
price will be cheaper to my customers and I will be competing
with other pubs and the free houses in the area, the standards
in my pub higher than managed houses and the quality of food is
far superior, however, I am unable to do this because my rent
is too high and I am paying the highest prices for beer in the
UK Beer Market thanks to "Beer Tie".
Furthermore, the managed pubs like Weatherspoon,
Whitbread, M&B etc are not closing down pubs week in week
out but keep on opening more and Weatherspoon this year opened
40 new pubs during the worst recession in out time.
However, in the tenanted and leased pub sector
mainly under the control of Punch and Enterprise, the pubs are
closing at the rate of 30-50 per week.
All the expansions in the managed pub sectors
are increasing at the expense of the tenanted and leased pubs
which are mainly under the control of Punch and Enterprise and
we are all under the contractual obligation to buy from them directly
and we are all paying the highest prices for beer in the UK Beer
market thanks to "Beer Tie".
All managed Pub Companies are very happy
with the current situation and they also know that there is no
competition from other Pub Companies which lease and tenant pubs
like Punch and Enterprise and the managed Pub Companies also do
not want the "Beer Tie" to be investigated by the Competition
Commission,
The managed Pub Companies are selling the beer
they bought very cheaply just below the price of the beer sold
in the leased and tenanted pubs and they are also making very
high profits from the sale of beer, thanks to "Beer Tie".
It may appear on the surface that there might
be competition but if fact it is more like "Cartel"
& "Price Fixing" by all Pub Companies, the biggest
being Punch and Enterprise and the small fishes like Weatherspoon,
Whitbread, M&B etc. and they all do not want the "Beer
Tie" to be investigated by the Competition Commission.
Only people which can and will understand the
"Beer Tie" and how the Pub Companies work is the Competition
Commission and BEC recomendations must be referred to the Competition
Commission without further delay.
The other alternative if it is at all possible
is that an amendment to the Beer Orders Act that "Beer Tie"
prices cannot be any higher than what is readily available in
the UK Beer Market leaving aside the buying power of the Pub Companies
and the rent, as recommended recently, the leased tenants should
not be any worse off than free of tie pub, this way there will
be competition.
I am more than willing to come and see you
or anyone else and explain anything else which needs to be clarified
in any shape or form.
The constant spin by the Pub Companies through
various bodies like BBPA etc in their back pockets, are clouding
everything and it is a deliberate ploy by all the Pub Companies
to stop the "Beer Tie" to be investigated by the Competition
Commission.
Many people like myself never hear of or
had any dealings with BBPA or any of the other bodies with the
exception of Fair Pint, are all "mutton dressed as lamb"
or "wolf in sheep clothing". All these bodies with the
exception of Fair Pint are in the back pockets of the Pub Companies
and none of them can be trusted.
Recently, all these bodies, with the exception
of Fair Pint, are openly fighting among themselves and most of
the time contradicting each other because they all want to remain
in the back pockets of the Pub Companies where most of their money
comes from.
This is my 7th year in my pub and I had no contact
from any of these bodies who are supposed to be on my side other
than Fair Pint and as you are fully aware, the Fair Pint was formed
recently.
The Pub Companies were given a chance five years
ago and during that time Punch have done everything to destroy
me in order to get me out of my pub so that my pub can be developped,
which has cost me £ 70K and I am struggling.
As recommended in the recent BEC Report, this
must go to the Competition Commission and just like Mr Luff said
and I quote " But the pubcos have proved rather slippery
and elusive customers in the past in terms of their relationship
they have with their tenants" etc, etc.
The mediation has broken down because Pub
Companies are not prepared to change whatsoever and they cannot
based on these Pub Companies were created to charge high rent
all the time and to charge the highest prices of beer all the
time which the "Beer Tie" gave the Pub Companies the
power to be able to do it.
The BBPA and all the other bodies with varied
initials are in the back pocket of the Pub Companies.
RICS said that tied tenants should not be any
worse off than free of tie tenants. However RICS is now saying
that they will not be rushed into anything and they will take
their time to come up with whatever, which I am sure will have
to be approved by the Pub Companies.
BBPA is now saying that RICS will be assessing
the whole package when it comes to tied and free of tie tenant
and not just isolated elements.
All I say to that is "What Package".
I pay the highest prices for beer in the UK Market, my rent is
very high, I am unable to compete with anyone because of the conditions
imposed on me, I have no dealings with the Pub Company whatsoever,
I am forced to accept very short shelf life beer from the Pub
Company at full price which is the highest price for beer in the
UK market, my expenses are constantly going up, all the pub company
wants to do is to make sure they can take every penny they can
out of me in any way they can before all costs and expenses, I
work all the hours under the sun and pay all the bills etc, etc
while the Pub Company makes the highest profits thanks to the
"Beer Tie".
All the conflicting so-called new guidelines
which suppose to improve everything with the Pub Companies are
a waste of time, window dressing and more spin which is controlled
by the Pub Companies.
All the ideas and suggestions are created by
the Pub Companies through BBPA and others to stop the "Pub
Companies" and the "Beer Tie" being investigated
by the Competition Commission.
Only people which can and will understand the
"Beer Tie" and how the Pub Companies work is the Competition
Commission and BEC recomendations must be referred to the Competition
Commission without further delay.
The other alternative if it is at all possible
is that an amendment to the Beer Orders Act that "Beer Tie"
prices cannot be any higher than what is readily available in
the UK Beer Market leaving aside the buying power of the Pub Companies
and the rent, as recommended recently, the leased tenants should
not be any worse off than free of tie pub, this way there will
be Competition
17 November 2009
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