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That this House notes that Punch Taverns, a standalone pubco which does not brew beer made, according to its own figures, an extraordinary £2.271 billion profit between 2002 and 2012 on selling beer to their own tied licensees; believes that this is a wholly unacceptable amount of profit for a company which merely acts as a broker; further notes that the standalone pubcos make considerably more profit from selling on beer than the companies who brew it, with brewery profit estimated by the British Beer and Pub Association as being as low as one penny per pint; further notes that unlike supermarkets and Wetherspoon's, the large leased pubcos not only do not pass on the benefit of this buying power to consumers, but instead charge their own tied licensees hugely marked up prices for beer often around 70 per cent more than the price direct from brewers or wholesalers and fine them if they buy elsewhere; further notes that the Association of Licensed Multiple Retailers' annual benchmarking shows that average tied rents are actually higher than free of tie rents; further believes that this shows that the large pubcos continue to take too much from pub profits often leaving little or nothing for their tenants; further believes that this is yet more damning evidence of the reality of the pubco tied model which is both unjustifiable and unsustainable; and calls on the Government to implement the Business, Innovation and Skills Select Committee market rent-only option for companies with more than 500 pubs.
Total number of signatures: 21
Showing 21 out of 21