Tim Bird, who runs north west-based pub company, Cheshire Cat Pubs & Inns, leases one of his seven pubs, the Three Greyhounds, from Heineken-owned Star Pubs.
Last month, Heineken announced it would be upping its draught prices for a number of its brands, including Amstel and Moretti, by 2.7% from February to combat rising operational costs, which Star asserted it was not immune to.
The pubco, which is led by Lawson Mountstevens, added it had kept the increase as “low as possible”, including freezing the price of Foster’s Lager in line with the new lower ABV and Murphy’s Irish Stout.
A spokesperson for the pubco told The MA: “This year, mindful of the cost pressures facing consumers and changing drinking habits, we have decided to reduce the wholesale price of Murphy’s and reformulated Foster’s resulting in lower prices.
Not aligned
“In addition, our short-term focus is on negotiations with the Government and our trade association partners regarding a fairer settlement for pub business rates from April.”
However, Bird has written to the company claiming Star is out of touch with the issues faced by its licensees.
The letter said: “At a time when we most need help from our landlord; you come along and put up our key beer and stout prices. Your approach is one of dismissiveness and shows you’re simply not aligned to your lessees and more importantly our/your customers.
“To hold up Foster’s as a good news story is shambolic, you have reduced the ABV for your benefit….as the ABV drops so do the consumer sales.
“As for Murphy’s, Heineken should hang their heads in utter shame! This is a stout brand you have done nothing with for decades, and now suddenly expect it to replace Guinness.”
Bird also criticised Star for increasing the price of Guinness ahead of the 5.2% uptick announced by Diageo last week, which will come into force in April. Though Star explained the Heineken price rise was unrelated.
Inflationary pressures
The spokesperson added: “The timing of the Guinness price rise announcement is unrelated to the prices Star Pubs negotiates on behalf of its licensees, hence the different implementation times.
“We are in almost constant negotiation with hundreds of suppliers, it would be impractical to pass on each price fluctuation at the point any such changes are finalised, therefore as a consequence and in keeping with all other years we action one price increase a year. We are subject to inflationary pressures year on year, some of which unfortunately we have to pass on in turn to our customers.”
Despite this, Bird warned he had planned to swap Guinness for other untied cask stouts
“We are an award-winning company for our drinks act and are expected to stock Guinness as the market leading stout. Guinness enjoyed like for like year on year growth of 45% across our estate last year alone”, the letter continued.
“Guests travel around our pubs because they have individual appeal. So how do I explain the £1.00 a pint difference for Guinness at the Three Greyhounds Inn?
“The answer is easy; we blame you and your band of merry thieves. You are forcing us to get rid of Guinness, as this is rapidly becoming a way of additionally ‘rentalising’ us.”
