Industry watchdog Pubs Code Adjudicator shines light on Heineken bars
Heineken’s pubs and bars business is being investigated by the industry watchdog amid concerns it forced unfair terms on pub tenants looking to break free of the “beer tie”.
The Pubs Code Adjudicator (PCA) said it had grounds to suspect Star Pubs & Bars may have breached the code by using unreasonable stocking terms on pubs who choose to cut the so-called beer tie.
The probe – the first ever for the PCA – covers the period between 21 July 2016, when the pubs code became law, and 10 July this year.
Under a “tied” lease, pub tenants must buy a certain amount of beer from their landlords, but they can ask to break free of the tie using a “market rent only” option.
This arrangement means they may still be required to stock the brewer’s beer – but strict limits have been set on how much they are obliged to buy since the pubs code came into effect.
Paul Newby, the pubs code adjudicator, said the PCA “decided to launch this investigation to understand the extent to which the pubs code may have been broken and the potential impact on Star tenants”.
Fiona Dickie, the deputy pubs code adjudicator, 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 spokesman for Star Pubs & Bars said the group was cooperating with the PCA and would “robustly” defend its position.
Star also stressed that the investigation relates just to those tenants on market rent only contracts – a small proportion of its total pub estate.