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It is very difficult for a microbrewery to sell its beer to pubs. The freehold of most pubs is owned either by large pub companies like Punch Taverns or by bigger breweries. In either case, the tenants or leaseholders who work the pubs are tied to the brands or list of products set down by the freeholders. There are relatively few pubs which are genuinely "free of tie". Such pubs tend to be independent operations where individuals own the freehold of the pub. Free of tie leases are rare.
Since 1982 David and Ruth Roberts have been running the Pilgrim brewery, a small microbrewery in Reigate. It was becoming increasingly difficult to sell Pilgrim ales to pubs on a regular basis due to the fact that so many pubs were becoming tied. Unable to raise funds to purchase the freehold of the pub , a rare opportunity emerged in 1999 for the Pilgrim brewery to obtain a free of tie lease on the Rising Sun pub in Epsom. The freehold belonged to Punch Taverns who are one of the large pub owning companies.
Ruth and Dave moved into The Rising Sun Pub as licensees and continued to work at the brewery on a reduced scale. For seven years Ruth and Dave grafted to build up trade and gradually the back street boozer with a reputation more for drugs than for beer began to make its mark. The Rising Sun gained a reputation for its range of beers unavailable in most pubs. Suddenly, people were being introduced to a wider choice, to lagers and wheat beers from Bavaria and a stout from a microbrewery in Ireland and a range of the finest bottled beers from throughout the world. Early in 2005, The Rising Sun also bravely became a no smoking pub, adding to the distinctive nature of the place.
On 22 May 2006, The Rising Sun received a letter from Young's Brewery advising that they would be buying the freehold of the pub. On 31 May 2006 they informed us that they had bought the freehold. On 1 June 2006, The Rising Sun was issued with a letter revoking a clause in the lease which enabled them to be free of tie. In future all Pilgrim ales would have to be replaced by Young's beers and the magnificent range of draft lagers, cider and stouts were also in jeopardy.
In view of the sudden and dramatic changes, the position of Ruth and Dave as leaseholders of the Rising Sun, with Young's as freeholders, and as Pilgrim brewery owners was made untenable. How could Ruth and Dave who have taken pride in offering choice and variety be tied to another brewery?
Reeling from the shock of the change in the lease, Ruth and Dave appeared to have three options:
- to surrender the lease to Young's
- to continue to work the pub as tenants of Young's
- to work the pub as tenants and sell the lease (the lease which yesterday was a "free of tie" gem and today was tied and high in rent).
Options 2 and 3 even on a temporary basis were implausible and would have an immediate knock on effect on the Pilgrim brewery. It would appear that Young's have yet to offer Ruth and Dave any compensation for surrendering the lease in its present state.
In terms of the future, the only hope is that:
- a more reasonable amount of time can be allocated to Ruth and Dave to pull out all the current range of products and surrender the lease.
- Young's consider some form of compensation to Ruth and Dave for the devastating effect on business which would result from their imposition of the tie.
- Retain the unique nature of the pub by offering the sale of the freehold.
The Save the Riser campaign is about many things. On the face of it, it's about the calculated and unreasonable treatment of the two hard working individuals and the drastic and sudden change in a pub. It's about big guys and little guys, brand and individuality, what's legal and what's ethical and it's about the power of the tie.
Ordinary folk are unaware that most publicans have a limited choice in the selection of beers depending on who they are tied to. So, likewise, do the customers have a limited choice. Notwithstanding some of the quality ales with which Young's itself has to offer, their tied listing for other draft beers - their lagers, ciders etc remain limited.
Over the last seven years, the Rising Sun customers have tasted variety and quality and distinction. Other forward looking enterprises are beginning to see the value in offering their customers variety and choice. The Rising Sun customers whether they keep coming to the pub or not are unlikely to be satisfied with the limitations of the tie in the future.
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