Tuppen: tie campaigners 'preposterous'

Enterprise Inns boss Ted Tuppen has hit out at the "preposterous" idea put forward by anti-tie campaigners that the terms of a contract can be unilaterally changed.

Tuppen, who is set to go before the Business, Innovation and Skills Committee (BISC) in June to give an update on progress, said that the campaigners "would never be satisfied" despite Enterprise's new suite of agreements, which he said offered enhanced flexibility and freedom.

Fair Pint campaigners have been lobbying for a "genuine" free of tie option with an open market rent review.

"The latest demand to unilaterally re-write contracts is preposterous," Tuppen told a meeting of analysts yesterday for Enterprise's half-year results.

"They are asking Parliament to legitimise a fundamental change in contract law. It is a step too far.

"It is like saying I don't like this big car I bought because the insurance is too high and the cost of petrol has gone up.

"I demand the right to a new one."

He added: "The questions of fairness in the tie have been comprehensively assessed by the Office of Fair Trading. It could not be clearer in its conclusion of the benefits of the tie."

Free of tie​

The company said that 94 agreements were now completely free of tie. And on new agreements since 1 October 2010, 29% tenants were now free of tie on pacakaged beer, 11% on guest ale, 4% on cask ale, 38% on wines and 32% on soft drinks.

"Quite simply we are prepared to negotiate almost anything with almost anybody," said chief operating officer Simon Townsend.

However, Fair Pint campaigner Simon Clark said: "I think Ted should put his money where his mouth is. If the tie delivers so many benefits, why not give tenants the option to opt out of the tie?

"If it is like buying a car, then it is like buying a car and being tied to buy the petrol at 10p a litre and tied for your insurance at £100. Then you find out that petrol prices have outstripped inflation and your insurance doesn't cover you to drive on the road."

Clark said giving all tenants the right to go free of tie with an open market rent review could be done via a deed of variation.

Code of practice​

Enterprise also said that in total, 160 tenants and lessees declined to recognise or accept the new code of practice, although there was a 97% take-up in Enterprise's substantive estate. Townsend said its new code, introduced in October 2010, has "undeniably raised the bar for new entrants in a positive way".

A recent survey of Enterprise licensees' attitudes found 82% were satisfied with their relationship with the pubco and 83% with their relationship with their regional manager. In addition, 75% of licensees regularly use Enterprise's promotions package.