Everards Pub Prices Mark Up
Tuesday 24th August 2010
GMB STUDY SHOWS MASSIVE MARK-UP ON WHOLESALE PRICES
CHARGED BY EVERARDS TO THEIR TIED PUB TENANTS IN EAST ANGLIA, EAST
MIDLANDS AND WEST MIDLANDS
GMB steps up campaign to get wet and dry rents cut to
save community pubs and secure a fair deal for tied tenants charged
a mark up of 80p on pint of lager
Everards charge 160 tied tenants in East Anglia, East and West
Midlands £420.15 for a brewer’s barrel (36 gallons) of Carlsberg
lager, a mark up of £230.69 or 122% on the £189.46 Everards pay for
this product. This is made public today by GMB as part of the
campaign for fair deal for tied pub tenants.
A new study GMB reveals the margins (or "mark up") that
Everards, the Leicestershire based brewery and pubco, levies on 27
products sold to it’s tied tenants and are set out in the table
below. The tenants are obliged to buy these products from the
company and the margin or "mark up" are the "wet rent" the tenant
pays to Everards for the lease of the pub in addition to the "dry"
rent. GMB has surveyed members to show that dry rents paid by
tenants are way above open market rents and the union is stepping
up its campaign to get these rents reduced as well. (See Note 3
below)
The highest percentage mark up is for seasonal ales. Everards
charge tenants £392.67 for a brewer’s barrel (36 gallons) of
seasonal ale, a mark up of £233.35 or 146.47%. Tied tenants are
charged £420.15 per barrel of Carlsberg compared with the £189.46
per barrel that this product costs Everards – a mark up of £230.69
or 122%. For 11 draught products, including cider the percentage
mark up is more than 100% and there are 10 products where the mark
up exceeds £200 per barrel. For Heineken the mark up is £213.28
(91.62%), for Kronenbourg £214.38 (86.86%) for Carling £181.48
(77.29%) and Fosters £167.19 (71.35%).
In the table below GMB compares the selling prices to tenants
with the buying prices Everards itself pays for these products to
show the margins in £ and by % for a total of 27 products including
wines, spirits and soft drinks. The raw data was supplied by
Everards. This has been analysed by GMB and ranked by products by %
mark-up – highest to lowest.
Also set out in note1 is a list of 168 Everards pubs by county
in East Anglia, East Midlands and West Midlands. Also in note 2 is
a summary of the latest accounts filed by the company which shows
that in the year to September 2009 the company had operating
profits of £3.6m on sales of £30.3m.
Everards – cost prices and selling prices to tied
tenants and mark-ups
|
Beers,Ciders and bottled products
|
Cost Price before VAT
|
List selling Price before VAT
|
|
|
| |
£ /brl
|
£ /brl
|
|
|
| |
Cost to Pubco
|
Cost to Tenant
|
difference (£)
|
% difference
|
| |
|
|
|
|
|
Seasonal Ales
|
159.31
|
392.67
|
233.35
|
146.47
|
|
Sunchaser
|
155.03
|
357.01
|
201.98
|
130.28
|
|
Tiger Traditional
|
161.46
|
362.00
|
200.54
|
124.20
|
|
Carlsberg
|
189.46
|
420.15
|
230.69
|
121.77
|
|
Amstel
|
199.81
|
442.07
|
242.26
|
121.25
|
|
Beacon Traditional
|
148.91
|
325.84
|
176.93
|
118.82
|
|
Original
|
190.99
|
400.02
|
209.03
|
109.45
|
|
Tiger Smooth
|
174.46
|
364.18
|
189.72
|
108.75
|
|
Draught Cider
|
189.16
|
387.45
|
198.29
|
104.83
|
|
Beacon Smooth
|
161.52
|
327.57
|
166.05
|
102.80
|
|
Mild Smooth
|
146.94
|
294.74
|
147.80
|
100.59
|
|
Heineken
|
232.79
|
446.07
|
213.28
|
91.62
|
|
Kronenbourg
|
249.70
|
464.08
|
214.38
|
85.86
|
|
Carling
|
234.81
|
416.29
|
181.48
|
77.29
|
|
Fosters
|
234.33
|
401.52
|
167.19
|
71.35
|
|
Other Draught Lager
|
302.76
|
512.16
|
209.40
|
69.16
|
|
Bulmers Packaged
|
293.16
|
471.79
|
178.63
|
60.93
|
|
Other Bottled & Canned
|
354.20
|
552.19
|
197.99
|
55.90
|
|
Budweiser Bottled
|
384.79
|
599.71
|
214.92
|
55.85
|
|
Magners Packaged
|
349.82
|
542.86
|
193.04
|
55.18
|
|
Ale Club
|
252.28
|
389.85
|
137.57
|
54.53
|
|
Other Foreign Ales
|
253.81
|
390.05
|
136.24
|
53.68
|
|
Stout
|
298.07
|
438.92
|
140.85
|
47.25
|
| |
|
|
|
|
| |
|
|
|
|
| |
£/litre
|
£/litre
|
|
|
| |
|
|
|
|
|
Wines
|
4.31
|
5.60
|
1.29
|
30.00
|
|
Soft Drinks Non Conc
|
1.48
|
1.81
|
0.33
|
22.05
|
|
Spirits
|
15.01
|
16.76
|
1.75
|
11.68
|
|
Soft Drinks Conc.
|
4.39
|
4.60
|
0.20
|
4.64
|
| |
|
|
|
|
Hayley Brennan, GMB Lead Organiser for tied pub tenant said
"These figures and analysis provide stark evidence as to
how property companies controlling the pub industry rip off both
tenants and consumers alike and we will continue to expose these
scams until a fair deal is reached for all.
These figures are proof of the very high "wet
rents" charged by pubcos in the form of mark up to wholesale prices
paid for by the tied tenants. Everards tenants are paying between
£387and £446 per barrel for products sold to Everards for between
£189 and £249 per barrel by the brewers
Everards do not have the buying power of the big
pubcos like Punch and Enterprrise who each have 40x the buying
power of this outfit. How much less are they
paying for products like Carlsberg which is sold to Everards for
£189.46. We know these pubco sell it on for well over £400 per
barrel giving them a wet rent of over £220 per barrel or 80p per
pint.
Wet rents and dry rents for tied pubs are far too
high. This is one of the main reasons why local pubs are closing
because tenants can not make ends meet. GMB has shown that pubco
dry rents are up to four times open market rents. GMB is stepping
up the campaign to get wet and dry rents cut in order to save
community pubs and for a fair deal for tenants. Increased
transparency on wet and dry rents charged and the involvement of
pub customers is an important part of securing necessary
changes"
End
Contact:
Hayley Brennan, GMB Lead Organiser on 07850 919 933 or 02932 632699
or GMB Press Office Steve Pryle on 07921 289880 or Rose Conroy on
07974 251823.
Notes to Editors
1 List of 158 Everards pubs
|
Bedfordshire
|
Albion
|
Ampthill
|
MK45 2JT
|
| |
|
|
|
|
Cambridgeshire
|
County Arms
|
Cambridge
|
CB3 0AH
|
| |
Plough Inn
|
Duxford
|
CB22 4RP
|
| |
Rose & Crown
|
Histon
|
CB24 9JB
|
| |
Tram Depot
|
Cambridge
|
CB1 1DY
|
| |
|
|
|
|
Coventry
|
Millpool
|
Coventry
|
CV2 5FR
|
| |
|
|
|
|
Derby City
|
Brunswick Inn
|
Derby
|
DE1 2RU
|
| |
Ferrers Arms
|
Sinfin
|
DE24 3DS
|
| |
Five Lamps
|
Derby
|
DE1 3BH
|
| |
Honeycomb
|
Mickleover
|
DE3 0NR
|
| |
|
|
|
|
Derbyshire
|
Chesterfield Arms
|
Chesterfield
|
S41 7PH
|
| |
Dead Poets Inn
|
Holbrook
|
DE56 0TQ
|
| |
Poet and Castle
|
Codnor
|
DE5 9QY
|
| |
Rose & Crown
|
Brampton
|
S40 2QT
|
| |
Sir Barnes Wallis
|
Ripley
|
DE5 3PY
|
| |
|
|
|
|
Leicester City
|
Aberdale
|
West Knighton
|
LE2 6HT
|
| |
Barley Mow
|
Leicester
|
LE1 6FE
|
| |
Black Horse
|
Leicester
|
LE3 5LT
|
| |
Black Horse
|
Aylestone
|
LE2 8NA
|
| |
Blackbird
|
Leicester
|
LE4 0FW
|
| |
Cradock Arms
|
Knighton
|
LE2 3TT
|
| |
Cricketers
|
Aylestone
|
LE2 8AD
|
| |
Crows Nest
|
Leicester
|
LE3 5QW
|
| |
Dove
|
Evington
|
LE5 6LH
|
| |
Glen
|
Glen Parva
|
LE2 9PT
|
| |
Globe
|
Leicester
|
LE1 5EU
|
| |
Half Time Orange
|
Leicester
|
LE2 7JL
|
| |
Marquis Wellington
|
Leicester
|
LE2 1EF
|
| |
Molly O'Grady's
|
Leicester
|
LE1 5AW
|
| |
Old Horse
|
Leicester
|
LE2 1NE
|
| |
Richard III
|
Leicester
|
LE1 4NN
|
| |
Rutland & Derby
|
Leicester
|
LE1 5JN
|
| |
Sir Robert Peel
|
Leicester
|
LE2 7DD
|
| |
Swallow
|
Thurnby
|
LE7 9PU
|
| |
Tudor
|
Leicester
|
LE3 5HT
|
| |
Western
|
Leicester
|
LE3 0GA
|
| |
Willow
|
Thurmaston
|
LE4 9JR
|
| |
|
|
|
|
Leicestershire
|
Anchor Inn
|
Hathern
|
LE12 5JB
|
| |
Anne of Cleves
|
Melton Mowbray
|
LE13 1AE
|
| |
Bakers Arms
|
Blaby
|
LE8 4FQ
|
| |
Beacon
|
Loughborough
|
LE11 2RB
|
| |
Birch Tree
|
Coalville
|
LE67 1TD
|
| |
Blue Bell
|
Desford
|
LE9 9JF
|
| |
Blue Bell
|
Hoby
|
LE14 3DT
|
| |
Blue Bell
|
Stoney Stanton
|
LE9 4DQ
|
| |
Blues
|
Oadby
|
LE2 4NW
|
| |
Bradgate
|
Newtown Linford
|
LE6 0AE
|
| |
Brant Inn
|
Groby
|
LE6 0DU
|
| |
Bricklayers Arms
|
Thornton
|
LE67 1AH
|
| |
Bulls Head
|
Cosby
|
LE9 1RQ
|
| |
Bulls Head
|
Leicester
|
LE9 9JE
|
| |
Bulls Head
|
Ratby
|
LE6 0LN
|
| |
Bulls Head
|
Whetstone
|
LE8 6JX
|
| |
Cheney Arms
|
Gaddesby
|
LE7 4XE
|
| |
Cherry Tree
|
Little Bowden
|
LE16 8AE
|
| |
Coach & Horses
|
Lubenham
|
LE16 9TF
|
| |
Coach & Horses
|
Markfield
|
LE67 9RF
|
| |
Crown Inn
|
Melton Mowbray
|
LE13 1AE
|
| |
Crown Inn
|
Shepshed
|
LE12 9RT
|
| |
Dog & Gun
|
Keyham
|
LE7 9JQ
|
| |
Dog & Gun
|
Whetstone
|
LE8 6NA
|
| |
Dominion
|
Glenfield
|
LE3 8FP
|
| |
Elephant & Castle
|
Thurlaston
|
LE9 7TP
|
| |
Fairfield
|
South Wigston
|
LE18 4YE
|
| |
Falcon
|
Long Whatton
|
LE12 5DG
|
| |
Forge
|
Glenfield
|
LE3 8DG
|
| |
Fox & Goose
|
Illston-on-the-Hill
|
LE7 9EG
|
| |
Fox Inn
|
Oadby
|
LE2 5DL
|
| |
Free Trade Inn
|
Sileby
|
LE12 7RW
|
| |
Gate Hangs Well
|
Syston
|
LE7 1NH
|
| |
Greyhound Inn
|
Burton-on-the-wolds
|
LE12 5AG
|
| |
Griffin Inn
|
Swithland
|
LE12 8TQ
|
| |
Heathcote Arms
|
Croft
|
LE9 3EG
|
| |
Horse & Trumpet
|
Wigston
|
LE18 1PB
|
| |
Lancaster Arms
|
Desford
|
LE9 9FP
|
| |
Lindens
|
Mountsorrel
|
LE12 7HF
|
| |
Maltings
|
Loughborough
|
LE11 4JX
|
| |
Marquis of Granby
|
Waltham-on-the-Wolds
|
LE14 4AH
|
| |
Nags Head
|
Glenfield
|
LE3 8BQ
|
| |
New Inn
|
Enderby
|
LE19 4AG
|
| |
Old Black Horse Inn
|
Houghton-on-the-Hill
|
LE7 9GD
|
| |
Old Crown
|
Fleckney
|
LE8 8AJ
|
| |
Old White Swan
|
Newbold Verdon
|
LE9 9NN
|
| |
Paget Arms
|
Loughborough
|
LE11 5DP
|
| |
Plough
|
Littlethorpe
|
LE19 2HS
|
| |
Queen Victoria
|
Syston
|
LE7 1GQ
|
| |
Queens Head
|
Saddington
|
LE8 0QH
|
| |
Queens Head
|
Billesdon
|
LE7 9AE
|
| |
Railway Inn
|
Ratby
|
LE6 0JQ
|
| |
Red Admiral
|
Broughton Astley
|
LE9 6PU
|
| |
Red Lion
|
Huncote
|
LE9 3AU
|
| |
Rose & Crown
|
Thurnby
|
LE7 9PJ
|
| |
Royal Oak
|
Rothley
|
LE7 7PF
|
| |
Royal Oak
|
Cossington
|
LE7 4UW
|
| |
Royal Oak
|
Kirby Muxloe
|
LE9 2AN
|
| |
Shakespeare
|
Braunstone
|
LE3 3AS
|
| |
Soar Bridge Inn
|
Barrow-on-Soar
|
LE12 8PN
|
| |
Stamford Arms
|
Groby
|
LE6 0DJ
|
| |
Star & Garter
|
Wigston Magna
|
LE18 1DS
|
| |
Three Nuns
|
Loughborough
|
LE11 1UD
|
| |
Tom Thumb
|
Blaby
|
LE8 4DG
|
| |
Vikings Tun
|
Wigston
|
LE18 2GL
|
| |
Waterside
|
Mountsorrel
|
LE12 7BB
|
| |
Wheatsheaf
|
Thurcaston
|
LE7 7JN
|
| |
White Horse
|
Quorn
|
LE12 8ET
|
| |
White Swan
|
Stoke Golding
|
CV13 6HE
|
| |
Winstanley Arms
|
Braunstone
|
LE3 2WB
|
| |
Ye Olde Bulls Head
|
Broughton Astley
|
LE9 6RD
|
| |
|
|
|
|
Lincolnshire
|
Bull Hotel
|
Market Deeping
|
PE6 8EA
|
| |
Crown and Anchor
|
Welby
|
NG32 3LP
|
| |
Golden Fleece
|
Stamford
|
PE9 2RB
|
| |
Hurdler
|
Stamford
|
PE9 1AL
|
| |
Recruiting Sergeant
|
Great Gonerby
|
NG31 8JP
|
| |
Royal Queen
|
Grantham
|
NG31 9PH
|
| |
Stag
|
Barkston
|
NG32 2NB
|
| |
|
|
|
|
Northamptonshire
|
Artichoke
|
Moulton
|
NN3 7SP
|
| |
Barley Mow
|
Cosgrove
|
MK19 7JD
|
| |
Beeswing
|
Northamptonshire
|
NN16 9AL
|
| |
Bulls Head
|
Clipston
|
LE16 9RT
|
| |
Collyweston Slater
|
Collyweston
|
PE9 3PQ
|
| |
Everard Arms
|
Corby
|
NN17 1SY
|
| |
George
|
Desborough
|
NN14 2NB
|
| |
George & Dragon
|
Chacombe
|
OX17 2JR
|
| |
Knights Lodge
|
Corby
|
NN18 0TH
|
| |
Swan Inn
|
Braybrooke
|
LE16 8LH
|
| |
Vane Arms
|
Sudborough
|
NN14 3BX
|
| |
Wayfarers
|
Kettering
|
NN15 6DX
|
| |
Wheatsheaf
|
Dallington
|
NN5 7HN
|
| |
White Hart
|
Great Houghton
|
NN4 0AF
|
| |
White Horse
|
Silverstone
|
NN12 8US
|
| |
Whyte Melville
|
Boughton
|
NN2 8SF
|
| |
|
|
|
|
Nottingham City
|
Escucha
|
Nottingham
|
NG1 2FZ
|
| |
Sir John Borlase Warren
|
Nottingham
|
NG7 3GD
|
| |
|
|
|
|
Nottinghamshire
|
Admiral Rodney
|
Calverton
|
NG14 6FB
|
| |
Air Hostess
|
Tollerton
|
NG12 4EA
|
| |
Carpenters Arms
|
Walesby
|
NG22 9NJ
|
| |
Crown Inn
|
Beeston
|
NG9 1FY
|
| |
Greendale Oak
|
Cuckney
|
NG20 9NQ
|
| |
Grey Horse Inn
|
North Collingham
|
NG23 7NL
|
| |
Hearty Goodfellow
|
Southwell
|
NG25 0HQ
|
| |
Newcastle Arms
|
Southwell
|
NG25 0ET
|
| |
Queens Head
|
Watnall
|
NG16 1HT
|
| |
Queens Hotel
|
East Markham
|
NG22 0RE
|
| |
Rose & Crown
|
Farndon
|
NG24 3SA
|
| |
Sun Inn
|
Gotham
|
NG11 0HX
|
| |
Unicorns Head
|
Langar
|
NG13 9HE
|
| |
Ye Olde Bridge Inn
|
Oxton
|
NG25 0SE
|
| |
|
|
|
|
Oxfordshire
|
Royal Blenheim
|
Oxford
|
OX1 1PT
|
| |
White Hart
|
Headington
|
OX3 9DL
|
| |
|
|
|
|
Peterborough
|
City Club
|
Priestgate
|
PE1 1JL
|
| |
Millstone Inn
|
Barnack
|
PE9 3ET
|
| |
|
|
|
|
Rutland
|
Crown Hotel
|
Uppingham
|
LE15 9PY
|
| |
Horseshoe Inn
|
Oakham
|
LE15 6LE
|
| |
Sun Inn
|
Cottesmore
|
LE15 7DH
|
| |
Wheatsheaf
|
Edith Weston
|
LE15 8TZ
|
| |
Wheatsheaf
|
Oakham
|
LE15 6QS
|
| |
White Lion
|
Whissendine
|
LE15 7ET
|
| |
|
|
|
|
Sandwell
|
Croft
|
Wednesbury
|
WS10 0DF
|
| |
|
|
|
|
Staffordshire
|
Greyhound
|
Newcastle Under Lyme
|
ST5 1JT
|
| |
Royal Exchange
|
Stone
|
ST15 8DA
|
| |
|
|
|
|
Stoke on Trent
|
White Star
|
Kingsway
|
ST4 1JB
|
| |
|
|
|
|
Telford and Wrekin
|
Old Fighting Cocks
|
Oakengates
|
TF2 6DU
|
| |
|
|
|
|
Warwickshire
|
Anchor
|
Hartshill
|
CV10 0RT
|
| |
Famous Virgins and Castle
|
Kenilworth
|
CV8 1LY
|
| |
Lounge
|
Leamington Spa
|
CV32 4AG
|
| |
Pub Opportunity
|
Rugby
|
CV21 2AB
|
| |
Racehorse
|
Warwick
|
CV34 6AS
|
| |
Somerville Arms
|
Leamington Spa
|
CV32 4SX
|
| |
|
|
|
2 Financial figures for Everards
|
Everards Brewery Ltd
|
|
|
|
|
|
| |
|
|
|
|
|
|
Year ending 26 September 2009
|
|
|
|
|
|
| |
£
|
|
|
|
|
| |
|
|
|
|
|
|
Turnover
|
30,385,000
|
|
3.1% decrease on previous year
|
| |
|
|
|
|
|
|
Operating Profit
|
3,632,000
|
|
3.4% increase on previous year
|
|
Profit before taxation
|
2,365,000
|
|
|
|
|
|
Profit for financial period
|
1,462,000
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|
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Rents receivable
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6,320,000
|
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2.4% increase on previous year
|
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Wholesale sales
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23,575,000
|
|
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|
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Highest paid director excluding pension contributions:
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318,000
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3 A new survey shows that GMB members tenants in tied pubs are
paying actual dry rents for their pubs to their pubcos which are up
to four times the Valuation Office Agency (VOA) assessment of what
are fair market rents for the same pubs based on a formula agreed
between VOA and pubco body BBPA.
The 1988 Local Government Act in schedule 6 sets out that the
rateable value for a pub for the purpose of collecting the Uniform
Business Rate should be equal to the open market rent and sets out
how this should be assessed. GMB consider that actual dry rents
charged, particularly for small pubs, are way above what under any
fair assessment is the correct open market rent for that pub.
A representative sample of GMB members from across the country
have given permission to publish details as follows: Carriers Arms,
Swindon, Wiltshire, a Punch pub- VOA rent £7,250 - Pubco dry
rent=£26,500; Trowel & Hammer, Stowmarket, Suffolk, an
Enterprise pub - VOA rent = £21,300 - Pubco dry rent=£65,000; The
Strand Bar, Portsmouth, Hampshire, a Punch pub- VOA rent =£8,000 -
Pubco dry rent = £29,000; The Travellers, Rotherham, South
Yorkshire, an Enterprise pub - VOA rent =£18,000 - Pubco dry rent =
£27,700; The Gentleman Jim, Alton, Hampshire an Admiral pub - VOA
Rent =£7,250 - Pubco dry rent= £ 11,500; The Honeycombe, Derby,
Derbyshire Everards pub- VOA rent= £24,250- Pubco dry rent =
£32,500 and The Aviator, St Ives, Cornwall, an Enterprise pub- VOA
rent=£14,800 - Pubco dry rent = £21,000.