News Article Comments : Morning Advertiser Freetrade Survey

J Mark Dodds

Dear reader,

For the sixth year running, the Morning Advertiser is polling its freetrade readers to learn more about their views on the trade and the issues that are central to their businesses.

To help us gain a greater understanding of life in the freetrade, we would be grateful if you could take a few minutes to fill in this online survey.

• Click here to take survey.

Your answers will enable us to build an accurate picture of the freehouse sector and provide a clearer idea of how we, and your suppliers, can better serve your needs.

Please note that all replies will be treated in strict confidence and no one will be individually identified.

As a thank you for your time, all questionnaires will be entered into our £1,000 cash draw.

Once again, thank you for your help.

Andrew Pring, Editor, Morning Advertiser

Return your completed survey by Friday 19 September 2008 and you’ll be entered into our prize draw with a chance to win one of 13 prizes. The first name drawn w

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RE: Morning Advertiser Freetrade Survey

My Tied Lease is with Scottish & Newcastle Pub Enterprises and I get an enormously 'generous' discount off list price of £42.24.

Waverley TBS are a wholly owned subsidiary of S&N plc (aka Carlsberg or Heineken) and they offered to supply me at £140 per barrel discount when I enquired and then I remembered that I am tied, dammit, and obviously had to turn their offer down.

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RE: Morning Advertiser Freetrade Survey

Of course you did Mark.

This post replies to J Mark Dodds > RE: Morning Advertiser Freetrade Survey

 

Morning Advertiser Freetrade Survey

Simple answer: life in the free trade is just as difficult as it is in the managed, tenanted and leased sectors with the caveat that 'free-traders' will be experiencing better margins on beer supply............ can I have £1,000 please!

This post replies to this thread

 

Morning Advertiser Freetrade Survey

When I first bought a freehouse, discounts were virtually non existant or minimal. The Pub Co's have demanded these enormous discounts which are accepted as the Norm.

Eight years ago I was getting up to £120 per barrel discount, the pub up the road was on the same, it was virtually a price ring, it would be interesting if discounts were capped to £5.00 per brewers barrel maximum across the board. It has a great similarity to interest rates Maggie Thatcher had interest rates up to 15% and a 1-2% increase was grudgingly accepted, now with low interest rates a .5% increase or decrease and we will cheering or booing. Minimal discounts would level the playing field at a stroke, the brewers would be happy, the leased and tenanted pubs would be delighted, freehouses would complain initially, the supermarkets would have their cheap booze deals killed at a stroke. If the Government stepped in and enforced it by capping discounts levels to £5.00 maximum per brewers barrel on all beer sales and similar for spirits, the removal of the tie would have minimal impact. Imported beers for resale could be subject to some form of taxation to ensure that they were not used as a loophole in respect of supermarket sales.

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Morning Advertiser Freetrade Survey

Freetrade Survey - OK:

Enterprise full tie, no discount:

Stella (22 GAL) £273.12 EX VAT

Guinness (11 GAL) £124.52 EX VAT

Heineken (11 GAL) £136.40 EX VAT

J. Smiths(11 GAL) £104.09 EX VAT

BUD (330ml * 24) £28.20 EX VAT = £3.56 Litre EX VAT

Magners (568ml * 12) £19.33 EX VAT = £2.83 Litre EX VAT

Sainsburys (09/09/08):

Stella (22 GAL) £187 INC VAT (£159.14 EX VAT)

Guinness (11 GAL) £127.50 INC VAT (£108.51 EX VAT)

Heineken (11 GAL) £108 INC VAT (£91.91 EX VAT

J. Smiths (11 GAL)£80.50 INC VAT (£68.51 EX VAT)

BUD (300ml * 20) £14.99 INC VAT = £2.50 Litre INC VAT = £2.13 EX VAT

Magners (1L * 6) £9 INC VAT = £1.49 Litre INC VAT = £1.27 EX VAT

RENT: on last years turnover of around £380,000

£34,000 P/A

Commercial PCM = £2550 EX VAT

Domestic PCM = £283.33 exempt VAT

Building Insurance = £1,411 P/A

Cellar cooling = £555 P/A (which they don't service due to health and safety as the evaporator is on the riverside - but they always used to!)

Gaming split 65/35 (us/them)

This is what is at hand at 0100 in the AM.

We all really should get the prices out there and show/discuss the differences to see the position we are really in, and allow free/non tie, managed etc to appreciate each others position.

What would be really useful is if anyone knows a charted surveyor or 2 to get them round to a few outlets and appraise the free market value of the pubs on the open market to allow a comparative unbiased view when compared to the Landlords view of their properties free trade value.

If we can give the figures, compile the statistics and unite we have a case - the figures will show this. So come on, get your sales invoices out and le'ts see what you pay.

I reckon Enterprise make an additional £50k plus per annum out of me simply by not passing on the tie discount. How does this compare? Lets give them a survey with some real meat that Stephen can perhaps use to help us and show the true picture.

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Morning Advertiser Freetrade Survey

Wholesale S/P

Fosters £77.00

Strongbow £72.00

JSS £76.00

Kron £95.00

Carlsb £76.00

Tetley £76.00

Stella 10g £95.00

Becks Vier £80.00

Carling £78.00

CBB £62.00

Magners £14.50

Further discounts available on all the above...

There is no chartered surveyor out there that would dare to offer a valuation as described. They would put him out of business in a week!

This post replies to Tony Preston > Morning Advertiser Freetrade Survey

 

Morning Advertiser Freetrade Survey

Just a comment on pub valuations which have been mentionned.

As is appropriate (especially if the landlord has granted a c.20 year lease) they are valued in these Companies books at investment value and not VP sales value.

Either way, it is hard to believe that the annual revaluation they must conduct can be anything but negative.

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Morning Advertiser Freetrade Survey

Would it not be in the interest of openness for the Government, were they to review the situation presented at the TISC for example, to appoint an independent body to conduct a review of the estates of the pubcos and compare the independent valuations to the pubcos submitted valuations as the valuation is a fundamental part in the process of rent extraction, and is fundamental in the fact that the supposed advantage of renting is that the value of entry to the business is greatly reduced against the free market purchase value. Should the estate be grossly overvalued, as one surmises it is, this would have a huge impact on the basis for the negotiation of the lease and also it would substantially affect the position of the banks in relation to the funds raised on each property based on the estates current valuation.

This post replies to martin kay > Morning Advertiser Freetrade Survey

 

Morning Advertiser Freetrade Survey

If only I could swap price lists....

This post replies to D Smith > Morning Advertiser Freetrade Survey

 

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