Tenants at 275 Greene King pubs to get 'more flexibility', says new owner Hawthorn Leisure

But pubco reform campaigners say Hawthorn Leisure’s decision to immediately sign a three-year deal with the brewer to continue to supply beer to the pubs shows little will change.

The company, backed by May Capital and Punch Taverns shareholder Avenue Capital Group — and run by ex-Enterprise Inns MD Gerry Carroll — aims to pick off non-core wet-led pubs from a number of large pubcos.

Both Hawthorn and Greene King have so far refused to reveal the identities of the pubs included in last week’s £75.6m deal but said tenants will be informed by letter “as soon as possible”. The sale reduces Greene King’s tenanted and leased estate to c.890 pubs.

Speaking to the PMA, May Capital founder Noah Bulkin insisted that Hawthorn would adopt a different approach to other pubcos.

Flexibility​

“Tenants can expect to see a difference. Greene King has different priorities as it is also a brewer and needs to push its products. There will be the potential for more flexibility with us,” he said.

Bulkin added that, while Greene King products “are great and we are very excited we have a three-year supply deal”, he would also look at “the best drinks offer that suits each individual pub”.

He said: “We have a partnership with Matthew Clark and a great relationship with suppliers and distributors. We’re in a very good position.”

Bulkin added the company was deliberately targeting pubs that existing pubcos “considered non-core but would be very much core for us”, and emphasised the new company had the ambition and finance for further deals.

He said there was no single model for making neglected wet-led pubs a success and that each pub will be looked at on a case-by-case basis.

Support​

“In many cases these are great pubs with great tenants but in the past they haven’t been given the right support. We want to change that. Where in some companies there is one BDM [business development manager] for every 75 pubs we will have one for every 35, which is a very good ratio.”

However, Simon Clarke, of the Fair Pint Campaign, said: “These tenants do not need another middle man telling them what most already know — they are suffering poor profitability because they are paying a rent that does not fairly reflect the inflated price for their core product — beer.

“A new company, with different-coloured paper clips, will not resolve that issue.”