Brewers hit in a tough marketplace

Two major brewers, Carlsberg and Coors, have filed accounts at Companies House that show how tough the UK beer market is.

Both major brewers have reported a big drop in profits for the 2005 calendar year - with Carlsberg reporting a small loss for the year.

Coors reported that profits had "declined significantly" as a result of "the decline in the UK beer market, especially in the on-trade, and margin pressures due to competitive discounting and retailer customer consolidation."

Carlsberg said it had a "disappointing year" because of difficult trading conditions in the market. The company, which increased its market share in the off-trade, made a pre-tax loss of £3.8m in the calendar year

An analyst, who asked not to be named, said: "Britain is the fifth largest beer-drinking country - it also ranks amongst the world's least profitable beer markets.

"No wonder Carlsberg, the smallest of the UK's larger majors, has recently put its prices up. Ultimately, however, it may have to decide whether and how it plans to stay in the UK."

l Latest AC Nielsen figures show the beer market has declined significantly this year - p5 & p13

Legal test

Licensees are reminded that it is currently illegal for poker to be played in pubs and clubs without a permit.

Under current law venues need a council permit to host games of chance that are played for money, such as poker. The only exceptions are dominoes and cribbage. Games of skill, such as darts or pool, require no permit.

The law will be tested in court early next year when Derek Kelly, owner of the Gutshot Card Club in Clerkenwell, London, faces trial for holding poker games without a licence.

Kelly argues that because poker is a game of skill it requires no permit.