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Beer price

Enterprise licensee claims pubco is selling beer to rival for £1 cheaper

By Oli Gross , 10-Feb-2016
Last updated on 10-Feb-2016 at 11:11 GMT2016-02-10T11:11:20Z

Enterprise licensee claims pubco is selling beer to rival for £1 cheaper

A licensee has claimed his pubco is offering its beer to a nearby pub at a discounted price, giving him no chance to match his rival’s offer.

Enterprise licensee Mike Thomas, 64, of the Rising Sun, Plymouth, said a nearby pub also owned by Enterprise is able to sell beer up to £1 cheaper than him.

Moral obligation

He told the Publican’s Morning Advertiser: “Enterprise should have a moral obligation not to do this sort of thing. I’m being punished for being a good operator.

“They claim it’s because I’m a food-led pub so my offer is different, so my beer price should be different. But I’m a wet-led pub. It’s all about beer.”

Thomas said the rival must have a better deal because he wouldn’t be able to sell at that price and make a profit.

Prices

“I’m getting grief about the prices. The other pub is getting help, and I’m not. I’m getting punished for doing well,” he said.

“The excuse that I am a food led pub is complete nonsense.”

Thomas has been a licensee for 10 years, and said he felt unappreciated.

Variety of agreements

A spokesperson for Enterprise Inns told the PMA that its publicans have a variety of agreements about the supply price of products and the extent of trading tie.

“Each rent is individually and freely negotiated to take account of such arrangements. Our publicans ultimately determine their own retail pricing by taking account of the nature of local competition, the sector of the market that they are looking to attract, and the margins they are wishing to achieve,” he said.

“We have a shared interest to compete successfully, and are always happy to provide guidance and support.”

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