Merging On The Ridiculous
Sommerset Newsletter, Summer 1999
By Adrian Tierney-Jones
The news of Scot-Co's intended closure of the Bristol
Courage plant will come as no great surprise to watchers
of the brewery world. All the big boys' axes are being sharpened
at the moment and brewing beer and the heritage of the likes
of Whitbread, Bass and Courage counts for nowt.
It's also big news in the financial world that Whitbread
have recently put in an offer for Allied Domecq's pub estate
(though there was some controversy about the bid but that
is so mind-numbingly boring that you need an
O-Level, or GSCE in Economics to understand the ramifications),
which according to competition regulations means that Whitbread
have to get rid of their brewing operations - the law being
that any company owing more than 5000 pubs must sell its
brewing divisions.
So by the time you read this 257 years of brewing will
probably have been flung out of the window like a stale
pint - I collect the post-World War II Whitbread Library
books about the art and culture of beer and wonder what
this 'leisure industry leader' called Whitbread has to do
with a brewery which once prided itself on its heritage.
The plots thickens - it has been alleged that Bass were
also keen to trump Whitbread with a deal for A-D. Does that
mean that Bass have future plans for coming out of the brewing
picture? Is this the end for Draught Bass, which I admit
is not what it was but at least if it's in good nick it's
a reasonable alternative to an over-chilled Guinness with
little flavour or tap-water which tastes of chlorine.
'So what' you might say as you sup a pint of Exmoor Gold,
Summer Lightning or Pitchfork. Good riddance to bad rubbish.
Stick with the micros. Pour me another regional (though
Greene King's possible takeover of Morland shows that there's
turmoil in this sector as well). That may be so on one level
but on another it could have ruinous effects for our favourite
beers, which have a hard enough time with the shrinking
free trade and pub chains which are squeezing out more and
more micros.
The products of the likes of Whitbread and Bass might be
as tempting as a bath in cold sick to many CAMRA members
but it's the power these big combines will have on the ability
of their pubs to take guest beers that we should fear. Whitbread
have said that the buying power of the enlarged pub estate
would mean cheaper beer. But in reality it will mean that
those brewing combines which can offer cheap lager, Guinness
or nitro-keg will trample all over the regional and micro
breweries who can ill-afford to match the massive discounts
of the big boys.
To any licensee who doesn't give a monkeys what his punters
drink as long as it keeps them merry and paying over the
odds, a cheap barrel of smoothflow will always triumph over
a more expensive (but still reasonably priced) barrel of
real ale which actually tastes of beer.
The result? Less choice and more small breweries either
still-born or going to the wall. The real ale drinker, as
ever, will lose out. It might not mean too much to us in
Somerset at the moment with our plethora of free houses
and the Taunton Wetherspoons, but remember the pubs which
were once free houses and are now managed. A former pub
of the year springs to mind - where once there were six
interesting real ales now you're lucky to see Old Speckled
Egg.
Someone living in a small town or village where the Whitbread
pub takes in 6X, Exmoor Ale or Cotleigh would soon find
themselves stuck with Bass, Boddingtons (no doubt it will
be bought by the likes of Scot-Co or Bass or even a Japanese
bank) or Flowers. Or the pub will call itself a free house
but one of the big boys might have helped set it up with
a loan on condition of taking their beers alongside the
landlord's choice. Cometh the cheap discounts and goeth
the local ale choice.
According to Mike Benner, CAMRA's head of campaigns and
communications, 'Consumers will be losers if this takeover
goes ahead. This deal will create the biggest pub chain
in the UK with some 7000 pubs and will undoubtedly lead
to less choice to consumers. It could lead to the closure
of Boddingtons Brewery in Manchester and continued moves
towards consolidation may result in just two national brewers
supplying over 80% of the market through supply deals with
a handful of pub chains.'
The question is: what can be done. High finance and the
big brewing world is a mystery to most of us. We can hardly
boycott Whitbread when we never touch its products. But
what we can do is write to our MPs or the minister responsible
for these operations to say how these mergers and buy-outs
affect our choice and the livelihoods of small brewers.
We can also shun Whitbread's other outlets such as Hogshead,
Brewers Fayre and any other bits and pieces they own. And
most importantly we can give our support to those precious
free houses where the landlord or landlady supports real
ale, even if they have to put Flowers on the bar because
of a business arrangement with Whitbread.
The final word goes to Martin Stafford at Dent Brewery,
whose O'wd Tup was Champion Winter Beer of Britain: 'If
big companies have their way, customers will be able to
buy only three types of rubbish beer in whatever pub they
walk into.'
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