Pub regulator investigates Heineken pub arm over ‘unreasonable stocking terms’ on landlords
Britain’s pub regulator is investigating Heineken’s pub arm over whether it coerced landlords to sell the its beer against their will.
In a landmark case, Pubs Code Adjudicator (PCA) Paul Newby is looking into the actions of Star Pubs and Bars, which the Dutch company owns.
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He said he had “reasonable grounds” to suspect the firm had imposed “unreasonable stocking terms” on tenants that sought a “market rent only” option. Such an agreement is designed to allow tenants to cut to so-called beer tie.
Star said it would “robustly” defend its position.
Newby will quiz landlords renting their pubs from the company whether Heineken tried to force them to stock an unreasonably high amount of its beer. He will also ask whether Heineken tried to influence the price at which they sold its beer.
He said: “Fiona Dickie [deputy PCA] and I have decided to launch this investigation to understand the extent to which the pubs code may have been breached and the potential impact on Star tenants.”
Dickie added: “Where tenants of a brewer business regulated by the Pubs Code exercise their right to ask to go free-of-tie they may still be required to stock that brewer’s beer or cider within limits set out under the Pubs Code. This investigation concerns whether Star has been going beyond those limits by offering non-compliant terms.”
A Star spokesperson said: “The legislation is clear that as a brewer we have the right to ensure that the pubs we own sell our beer and cider. This reflects the significant ongoing investment we make and the jobs we support in our UK breweries, cideries and supply chain.
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“While the principle of the brewers stocking requirement is clear, this part of the new legislation is complex and not clearly defined in the pubs code. We therefore hope that this investigation will provide the certainty and clarity that we have sought repeatedly over the past three years.
“We will of course cooperate fully with the PCA whilst robustly defending our position.”
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