Hosts in 'stand-off' with Enterprise
A group of South Yorkshire licensees are in a virtual "stand-off" with their landlord, Enterprise Inns, in a deepening row over the cost of tied beer and unfair trading conditions.
More than 40 Enterprise hosts attended a meeting in Sheffield this week to draw up battle plans in their bid to force the company to listen to their grievances.
A number revealed they were on the point of going under and appealed to Enterprise for help to avoid a string of pub closures across the region. Some revealed they were buying beer out of tie as it was the only way their pubs could survive.
They claim Enterprise prices are sometimes more than 70% above rates charged in the freetrade by brewers and wholesalers.
Vice-chairman of the newly-formed Sheffield Area Enterprise Inns Tenants Group, Wayne Hodgkins, said: "Everyone in this room tonight has the same story with the same ending.
"None of us is making any money and in many cases the situation is worse than that. Enterprise wants to pick us off, but the only way to force them to listen is to stand together and speak with a united voice."
The Sheffield licensees are now in contact with other Enterprise hosts in other regions and the Fair Pint campaign with a view to setting up more groups.
Enterprise said it is spending £1.4m a month to help its pubs across the country, but accused the South Yorkshire hosts of failing to provide "meaningful information" about their current business circumstances. Enterprise says without this financial data it is impossible for them to offer assistance.
It says licensees signing a lease are aware of the pricing structure of beer and other products, and some of the Sheffield hosts paid cash sums to previous licensees to take on their businesses as recently as last October.
It added that rents for tied pubs will always be lower than those charged for free-of-tie houses reflecting the prices of products, which are higher than the wholesale market, and that these terms are specified in the lease agreement.
Two Enterprise hosts who attended Tuesday night's meeting said they were getting assistance from the company.
Sheffield Attercliffe's Labour MP Clive Betts attended the meeting.
