PUNCH DRUNK!
Pub takeovers send ale price sky high
DRINKERS face forking out more for a pint after Heineken took over a major British pub chain.
The Dutch brewer has sealed a £403million buyout of Punch Taverns, taking control of 1,900 of its boozers.
A private equity firm has bought the remaining 1,300 Punch pubs.
The deal could lead to price hikes and stifle the UK’s rich choice of ales, the competition watchdog has warned. It is feared Heineken will use its hold on the market to push up the cost of beer, said the Competition and Markets Authority.
The average cost of a pint is currently £3.47, according to the Campaign for Real Ale. David Forde, managing director of Heineken UK, said: “We are confident we can offer the CMA suitable undertakings to satisfy their concerns.”
The takeover comes as new figures revealed more than four pubs a day are closing. There were 122,200 licensed premises at the end of March – 1,527 fewer than at the same time last year.
The smoking ban, cheap supermarket booze and healthy lifestyle fads have all hit business, a report by AlixPartners and CGA Peach reveals.
But the total number of managed licensed venues – including cafes, hotels, restaurants and bars – has risen by 2.5% over the past year, as people desert their traditional pub in favour of meals out.