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Pub Tenants Contact Micro Brewers

Thursday, February 28, 2013

GMB ask micro brewers to contact BIS to express support for "Free of Tie" option in statutory code for pub industry.

A free market with brewers able to offer drinks to all pubs in any area as well as using SIBA direct delivery scheme is good for tenants, for micro brewers and for pub customers says GMB.

GMB, the union for tied tenants, has written to all micro breweries across the UK asking them to write to BIS to support the "free of tie" option in the consultation currently underway over a new statutory code for tied pubs. See notes to editors for copy of letter sent to micro brewers.

Dave Mountford, GMB branch secretary who represents tied tenants, says in the letter "The SIBA operated direct delivery scheme which is often touted by the large pub companies as an excellent initiative enabling independent micro brewers access to their tied market.

However I believe this to be far from the truth as this scheme is unnecessarily restrictive. . .

SIBA has to go along with restrictions imposed by pubcos on the range of beers placed on the SIBA list and does not allow you to do any direct marketing to the tied pubs in your catchment area.

The price charged by the pubco to their lessees on the SIBA scheme and tenants is so as much as 80% more than I would be charged as a free of tie Pub. Clearly I believe this restricts your opportunity as you have no say over the price of the product you sell.

GMB is not anti SIBA or their delivery scheme. Our position is that their direct delivery system is in itself not sufficient to allow you access to the 20,000 plus pubs controlled by the property companies that own them. GMB favours you having free access to sell your drinks to all the pubs in your area as well as using SIBA direct delivery scheme if you so wish to do so. We think that would be good for our members the tenants, for you and for pub customers.

GMB, as the union for tied pub tenants, believes that a free of tie option would expand the market open to you massively making it possible for you to approach your market directly and support your product with marketing support and direct customer service, things that are at the moment denied you."

End

Contact Dave Mountford 07794 021 212 or 01629 258 083 or 07916 154359 or GMB press office 07921 289880

Notes to Editors

Dear sir/madam

I would like to take this opportunity to involve your company in the current discussions involving changes to the Pub industry.

You may be aware that the Government have recently announced they will be undergoing a consultation process regarding the planned implementation of statutory regulation for the Pub industry.

You may also be aware that this regulation may include a "free of tie option".

GMB, the union for tied tenants, has been instrumental in forcing Government to take this action. As secretary of Matlock Branch I have personally supported many tied tenants in their fight with their PUBCO’s and am involved in the consultations around this important issue. I also have personal experience having run a tied Pub for 5 years.

This consultation process is being conducted by the Secretary of State for Business Innovation and Skills and therefore this Department is interested in businesses both large and small.

I would therefore be grateful if you would consider supporting this statutory regulation process and particularly the option of a free of tie agreement to be incorporated in to tied leases and tenancies.

The representative body, the Society of Independent Brewers Association (SIBA) operates a direct delivery scheme which is often touted by the large Pub Companies as an excellent initiative enabling independent micro brewers access to their tied market.

However I believe this to be far from the truth as this scheme is unnecessarily restrictive due, amongst other things the administrative shortcomings of SIBA.

If you join SIBA or are already a member of SIBA you have no control over the price you can you’re your beer for and in fact I believe you have no agreed price for your beer before you join – the cost of which is up to £600 per annum on a sliding scale.

SIBA has to go along with restrictions imposed by pubcos on the range of beers placed on the SIBA list and does not allow you to do any direct marketing to the tied Pubs in your catchment area.

My experiences of other local micro breweries in my area show that many companies beers are frequently de listed from SIBA with no prior warning and no satisfactory explanation.

You may also be aware that the price charged by the pubco to their lessees on the SIBA scheme and tenants is so as much as 80% more than I would be charged as a free of tie Pub. Clearly I believe this restricts your opportunity as you have no say over the price of the product you sell.

GMB is not anti SIBA or their DDS. Our position is that their direct delivery system is in itself not sufficient to allow you access to the 20,000 plus pubs controled by the property companies that own them. GMB favours you having free access to sell your drinks to all the pubs in your area as well as using SIBA direct delivery scheme if you so wish to do so. We think that would be good for our members the tenants, for you and for pub customers.

GMB, as the union for tied pub tenants, believes that a free of tie option would expand the market open to you massively making it possible for you to approach your market directly and support your product with marketing support and direct customer service, things that are at the moment denied you.

I ask therefore that you use this information so that the views of your Company can be represented in this process, the outcome of which could have such a positive effect on the future of your small or not so small business.

Should you have any queries with regard to this email please do not hesitate to contact Dave Mountford on 077940 212212 or davemountford@sky.com.

Should you wish to contact the government Department directly with your views please e mail Iain Mansfield –

iain.mansfield@bis.gsi.gov.uk

Many thanks for your assistance in this matter.

Yours sincerely

Dave Mountford
Secretary
GMB Matlock Branch

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