Marston's: beer tie not the problem
The beer tie is not the problem for our tenants, Marston's chief executive Ralph Findlay said today.
Speaking to The Times, Findlay admitted that Marston's relationship with its tenants had been stretched over the past three years but also said external factors such as the recession and smoking ban were to blame.
"People get very focused on tied pubs and the tenanted and leased model, but this is a small-business problem," he said. "The simple fact is that the economy has been very difficult and all small businesses, whether a pub or a shoe shop, have suffered.
"Shops are empty and boarded up because they haven't got the support of landlords who are actually interested in the ongoing business. That's the big difference with pubs."
He added that the issue of the tie was a red herring. "The tie is not the issue for most of our tenants. I would separate the price of beer from the issue of the tie.
"The issue is the price of beer plus the level of the rent. At Marston's, we're trying to deal with that through some of the new lease agreements we've introduced in the last year. The aim is to take pricing off the agenda, but that can be done without looking at the tie."
Findlay warned that ending the tie would put the power in the hands of the big global lager brewers, who would ramp up prices.
• Read the full article here.
