Applying For A Tenancy Ornew Lease
Mark S. Elliott has spent 25 years working in various management roles within the tenanted and leased divisions of the UK's largest breweries and pub companies. His extensive knowledge and day-to-day involvement with pubs and publicans make him well qualified to know what is required to run a successful pub. He shares his knowledge and many 'insider tips' with you in this book. Mark is based in Cockermouth, Cumbria.
BREWERIES AND PUB COMPANIES
Over the last 15 years the licensed trade has gone through many changes, mainly as a result of the Monopolies and Mergers Commission investigation into its activities, and subsequent legislation – The Supply of Beer (Loan Ties, Licensed Premises and Wholesale Prices) Order 1989 and The Supply of Beer (Tied Estate) Order 1989. The Monopolies Commission had concluded that the major brewers of the time had a stranglehold over the industry and as a result consumer choice was severely limited, and independent producers and wholesalers were unable to compete. The Government issued the ‘beer orders’ which required brewers with over 2000 pubs, to release from the tie half of the surplus over 2000 pubs, creating 11,000 more free houses. The national brewers were required to allow their licensees freedom to purchase non-beer drinks from any source and sell at least one cask beer. The result has been a complete shake-up of the industry, with several brewers selling their pubs to focus on other activities, and mergers between brewers. Of the original major brewers, only Scottish and Newcastle currently have a significant pub estate remaining. In response to the new shape of the industry and more appropriate legislation to cover the situation, the beer orders were revoked in 2003.
The changes have led to the growth of pub company businesses, who now dominate the industry. Many own large numbers of pubs. In 2005, the top 3 pub companies owned one third of total UK pubs. These operators have steadily increased their pub estates through acquisition over recent years and this trend is likely to continue.