Marston's offers tenants wholesale beer prices

By Matt Eley Matt

- Last updated on GMT

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Marston's has unveiled details of its latest tenancy agreement which will give licensees the chance to buy beer at freetrade prices. After...

Marston's has unveiled details of its latest tenancy agreement which will give licensees the chance to buy beer at freetrade prices.

After researching and conducting interviews with scores of licensees across the estate Marston's Pub Company boss Alistair Darby has concluded the "main issue is the price of beer, not the beer tie itself".

In response the Burton-based operator is inviting around 600 of its top licensees to take part in its 'Advance' scheme. This means they can buy beer at the same price Marston's would charge freetrade customers. The incremental discount earned will be partly offset by an additional payment.

In a trial scheme involving 30 licensees those who took part and invested to grow their businesses were around £7,500 better off. More than half of those invested cash in schemes such as promotions to achieve an average volume growth of five per cent.

Darby said: "After listening to what licensees had to say about the 'tie' it became obvious that increasing price activity around them was a bigger concern than their rent."

Advance follows Marston's Retail Agreement scheme, effectively a new deal placed between management and a tenancy. Under the agreement Marston's pays for costs such as rates, utilities, marketing and beer with the licensee taking 20 per cent of turnover for staff costs and their own salary during the five years of the deal.

With the exception of Carling Black Label (due to a hike from Coors) Marston's is freezing wholesale price on all draught products to its tenants until October 1. It will also be introducing Stella 4 to its range.

"The whole point here is we are trying to give our tenants real alternatives on other brands and some certainty in what is going to be a crucial spring and summer," added Darby.

Related topics Beer

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