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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

       
           

Rents receivable

6,320,000

 

2.4% increase on previous year

Wholesale sales

23,575,000

       
           

Highest paid director excluding pension contributions:

318,000

       
           

 

 

 

 

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.

 

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