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News Article Comments : Chancellor takes 50 times more than brewer from a pint
The Chancellor now makes 50 times more from a pint of beer than the brewer — that is the stunning news from London brewer Fuller's.
Chairman Michael Turner slammed Alistair Darling's plans to increase duty by 2% from midnight tonight and claimed 60,000 jobs were now at risk.
"The Chancellor already makes 50 times as much out of each pint sold as the brewer does and this further increase cannot be justified," he said.
"The British pub is the home of responsible drinking and the envy of the world. It should be cherished not persecuted.
“59% of Mr Darling’s fellow MPs opposed the plans to increase beer duty yet again along with 70% of the public opposing an above inflation increase.
"Beer duty rose by 18% last year alone and figures have shown that the Treasury’s revenues from duty over the last five years have actually decreased in that time.
“The UK economy is now deep in recession and pubs are closing at a record rate of nearly six a day. 60,000 jobs are at risk over the next f
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info man 22/04/2009 14:14:30  |
RE: Chancellor takes 50 times more than brewer from a pint The only group who take more from a pint of beer than the government are the Pubcos. Who gets shafted? The Brewer and the Publican and in turn the customers! This post replies to this thread |
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| Tony Preston 22/04/2009 16:14:02 |
Chancellor takes 50 times more than brewer from a pint I've tried to calculate the split between us, brewer, pubco and government on this thread: http://www.morningadvertiser.co.uk/forum.ma/thread-for-post/51928 This post replies to this thread |
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| info man 22/04/2009 16:17:44 |
Chancellor takes 50 times more than brewer from a pint Hi Tony , I thank you for illustating the point perfectly. "The profit on 490 delivered barrels per year ( 300 BB ) would be £171.83*490 = £84,196 So, trading on the above assumptions, one has the following cash exchange: Government: £ 72,818.90 Brewer: £ 5,223.00 PubCo: £104,389.60 Publican: £ 84,196.70 Now we know why we are in trouble!" This post replies to Tony Preston > Chancellor takes 50 times more than brewer from a pint |
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colin matlock 22/04/2009 16:30:49 |
Chancellor takes 50 times more than brewer from a pint I wonder what the split is on petrol. We all have to pay our taxes. This post replies to info man > Chancellor takes 50 times more than brewer from a pint |
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| Tony Preston 23/04/2009 10:28:32 |
Chancellor takes 50 times more than brewer from a pint But WE don't have to run the business's that supply the petrol... This argument can snipe on forever, the fact is the problems are multifaceted. There are different business models operating from pubco/brewer/managed house and from the manager/tenent/lessee or suchlike. Each have their own incongruities of operation, and to some, one or more external factors prevail as being the most detrimental. The factors are myriad, but boil down in the main to: Increased Duty: This tax increases the duty paid by the brewer to the government. This has the effect of increasing the on-sale price of the product to counter the raise in tax. The brewer does not need to increase on-sale costs, but if they don’t, the profit made decreases. VAT: Currently reduced, this has the effect of increasing the net price of goods at the point of sale. This tax is ubiquitous, and is used as a commodity tax so all people purchasing ‘products or services’ are taxed equally. Energy: The increases in energy prices have had the effect of either increasing the net price of a product or service, or reducing the profit (terms of GP or ‘cash’ are equally relevant). Food: Same as energy, the fluctuation either increases cost or decreased profit. Rent: This is a fixed outlay monthly, and is purported to be based on ‘potential sales volume’. The discord is the ‘potential’ – it isn’t quantifiable and is not calculated with openness and transparency – and thus is a cause for consternation. (cont...) This post replies to colin matlock > Chancellor takes 50 times more than brewer from a pint |
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| Tony Preston 23/04/2009 11:01:04 |
Chancellor takes 50 times more than brewer from a pint Tie: This is a profit mechanism for the tied house owner whereby the supplier, in most cases a ‘pubco’, artificially increases the brewers ‘list price’ by negotiation, and then sells you that product at the full artificially inflated price. Non-tie operators are able to achieve substantial discounts on the ‘list price’ – thus, in-trade animosity and a difficulty for one operator type to fully understand other operators concerns. This also leads to a removal of normal business practices whereby one can negotiate best terms for a product, and thus the business can only make up a cash deficit by increasing point of sale prices. This is often contrary to general trading consensus, and thus leads to trading difficulty. Service Supply: Things like cellar services, insurance, AWP supplies are in this category. This follows the tie above, insofar as the free of tie operator can do as they please, but a tied operator often can’t, thus leading to an increase in premiums and ongoing costs, not negotiable and thus affecting profit or point-of-sale prices. Targets: Managed houses in particular may be target driven, and this can place an undue burden on the operator, especially in tough economic conditions where in actual fact, the targets may be increased to help cash influx to the management company, as they may themselves be seeing lower sales volume affecting their business model. Managed operators may be on a low-ish ‘basic’ that attracts bonus payments for achieving target. I am sure there are many more factors, but the point is that the thing that pushes our ‘buttons’ is different and sometimes the same. Yes, the duty affects all without prejudice. We all suffer from the common factors of energy increases and the like. I am unsure how a managed house operated in terms of say a Beefeater – is the manager responsible for energy bills, staffing, food costs, plated costs or is this process centralised? (cont...) This post replies to Tony Preston > Chancellor takes 50 times more than brewer from a pint |
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| Tony Preston 23/04/2009 11:02:05 |
Chancellor takes 50 times more than brewer from a pint The great thing for those that we would like to court in dialogue is that the incongruities and misunderstanding are beneficial to them because whilst we swim in confusion and turmoil, they swim in avarice and control. The object is the same – a united British pub with a fantastic offer and convivial environment to serve, responsibly, the British public, giving them a forum for open communication, friendship, laughter (and sorrow) – allowing them to learn, nurture and hone social skills and human interaction. Giving them jobs and a purpose, and helping the community through events and charitable support. Being the focus of the community, for the good of the community. Once upon a time, a publican was a responsible person seen by society as such, and served amongst the ranks of the police, solicitors, magistrates when important official documentation needed to be witnessed. What have we become – where are we now? More importantly, in 5 years time, where will we be..... This post replies to Tony Preston > Chancellor takes 50 times more than brewer from a pint |
