Yates first to adopt minimum price scheme
Yates has become the first pub company to enforce a minimum price scheme across its estate.
As part of its nine-point BarSafe strategy the managed house operator has become the first to introduce the brave policy, in a bid to cut out binge drinking.
From November 1 no alcoholic drink will be sold in a Yates or Ha! Ha! Bar & Canteen for less than a pound. The cheapest pint will be £1.25, cocktail jugs will have a reduction in the number of shots, and 'all-you-can-drink' offers will be abolished.
The move comes after Yates was stung during the government's summer crackdown, and is particularly daring as the operator is implementing these measures in spite of the risk of being undercut by competitors.
"We are committed to this and will be sticking to it regardless of what operators around us do," said Mark Jones, chief executive at Yates. "We have tried to be as innovative as we can with this policy and will use it when we go to licensing authorities to prove we can do something on the social responsibility issue."
More could follow in the footsteps of Yates but this presents a major challenge after the British Beer and Pub Association (BBPA) stated minimum pricing schemes among rival companies were illegal.
In a letter to members written after consulting with government departments, BBPA chief executive Rob Hayward stated: "Any pub or bar that participates in a minimum pricing scheme in any way in England & Wales will be in breach of the Competition Act. Where a landlord is approached to participate in such a scheme they should refuse to do so on the grounds of adherence to competition law."
But Mr Jones was quick to emphasise that Yates has not worked out prices with other companies, so is not contravening the Competition Act 1998.
As well as minimum pricing, the Yates document will reward managers who take a more proactive role in social responsibility with a bonus scheme.
Where appropriate this will mean joining Pubwatch schemes - a point Malcolm Eidmans, secretary of National Pubwatch, has praised. "Incentivising staff to do things like join Pubwatch is a big step for a pubco and should be applauded," said Mr Eidmans. "We'd like to see other companies following."
Yates' BarSafe strategy will also set aside a community fund of £50,000 a year to be used with local authorities to provide more night buses, more police, CCTV or portable toilets.
Industry policies
Spirit is among the other pubcos who could follow the Yates lead and is currently updating its policy. Spirit said: "We take the issue seriously and are working with key bodies to develop a comprehensive policy, in line with industry guidelines for the sale and promotion of alcohol."
Meanwhile, minimum pricing has not been adopted in Greene King's social responsibility code, but the pubco maintains that it will never offer all-you-can-drink promotions or discounted prices at more than 35 per cent.
Regent Inns led the way with a social responsibility code but, as yet, has avoided a blanket price policy across its estate.
On the box
BBC2's Money Programme is set to investigate how the drinks industry can keep the balance between being socially responsible and remain a profit making business.
The new two-part series starting on BBC2 on Wednesday, October 27 at 7.30pm will investigate the possibility of government legislation against drinks companies and pubs.
