Punch lessees'battle strategy
by Richard Matthews Angry Punch licensees packed into a crisis meeting at a Midlands pub to vent their anger at tied beer prices and "excessive" rents levied by their company. And as part of their battle plans to force the company to review their trading conditions, they have now formed a Punch tenants' association under the auspices of the Federation of Pub Partnerships. Punch, though, says it does not recognise the collective group but prefers to deal with its lessees on an individual basis. The organiser of the meeting, Dave Westwood, said he was delighted with the turnout of around 50 Punch lessees and their partners at his pub, the Vine at Rugeley, Staffordshire. Some of those who attended had travelled from as far afield at Northumbria, Kent and South Wales. Westwood said: "We're talking about the future of the traditional pub here. All pubco lessees are facing the same problems. Because of the tie, they are forced to buy their beers at prices dictated by their company and consequently cannot compete with pubs run by managed house chains and free traders. "The rents we are charged are excessive and scores of lessees are struggling to make a living or are going out of business. We have to do something now or traditional pubs could disappear forever." The meeting decided to campaign on a number of fronts:
Punch lessees and other disgruntled pubco licensees would be invited to join the association and make a financial contribution.
Petitions would be organised in pubs so that customers were aware of the licensees' plight.
Punch shares would be purchased so that lessees had a voice at shareholders' meeting.
MPs and MEPs would be contacted and lobbied.
Direct approaches would be made to the Government, the Office of Fair Trading and the European Commission. Norman Bawden, one of the founder members of the Federation of Pub Partnerships, who formerly ran the Punch-owned Mermaid at Sherborne, Dorset, said: "I was around £80,000 out of pocket when I locked the doors and walked away from my pub because I'd had enough. "But I vowed I'd fight Punch and the Government until my dying day to get a fair deal for lessees." Solicitor Julian Maitland-Walker warned licensees not to expect instant success. "It will be a long, hard road, and costly, but if we work together and gather as much information as we can about how the tie system works against the consumer then we stand a chance," he said. Maitland-Walker said thatafter 13 years of legal wrangling an Inntrepreneur dispute was only now about to come to conclusion when the High Court next February would consider the well-documented Creehan case. "I am optimistic that the court will rule the tie is illegal and he will be eligible for damages. If that is the outcome, that could have a bearing on future cases, although one of our best routes could be to pursue a case through the OFT, highlighting the anti-competitive nature of the beer tie." Chartered surveyor David Morgan said 70% of the calls he receives for help with rent reviews are from Punch lessees in difficulties. "It's clear that Big Brother tactics are being used and lessees are finding it hard to stand up to the huge pubco machine," he added. l The Federation of Small Businesses recently made acomplaint to the OFT about the "unfair" terms of lease agreements and it is understood the OFT is currently contacting pub companies as part of a probe.
