Traditional pubs may have to call time over 99p pint

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Tuesday, January 13, 2009
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This is Cornwall

A MOVE by JD Wetherspoon to slash the price of a pint of beer to 99p may prove to be the final nail in the coffin for many traditional Cornish pubs, landlords warned yesterday.

Britain's biggest pub chain has turned back the clock to 1989 – the last time draught beer was available for less than a pound in pubs.

But some licensees across Cornwall, already struggling in the face of the credit crunch and cut-price supermarket booze offers, say the inflation-busting pint may force them to call time on their business.

Wetherspoon last week announced a string of "indefinite" offers at its 713 pubs, cutting the price of a pint of Greene King IPA and a bottle of San Miguel lager to 99p.

The pub giant defended the move, claiming it was trying to help those caught in the economic slump.

However, the decision has caused a stir among landlords in the Duchy, where according to the latest figures, up to 50 pubs are already for sale.

Many in the pub trade said they believed customer loyalty will hold the key to survival in the coming weeks and months.

Terry Payne, chief executive of the Federation of Licensed Victuallers Associations, said: "It (the 99p pint) is only one beer. Licensees have got to be saying to customers 'come and have a look at our premises. Look at our range and quality'.

"All it does is lead to a price war but you will find the majority of licensees can't buy beer at that price.

"The recession is affecting everyone but a lot of our members will be getting an increase on beer from their brewery in February. That's when a number of breweries will put up prices because of rising costs.

"It's only when pubs go that the public realise what they've lost."

Gary Marshall, who runs the award-winning Blisland Inn on the outskirts of Bodmin, described Wetherspoon's 99p beer offers as "ridiculously cheap".

"But at the end of the day, it's about more than the price of a pint," he said. "A local pub is a local pub and Wetherspoon cannot ever become a local pub. But this offer will have an impact, especially on pubs in the town."

Village landlord Brian Bazeley says he has watched a host of local pubs fall by the wayside since taking over the Ring O' Bells in St Columb Major, near Newquay, some 15 years ago.

"Five drinking establishments have shut in St Columb during that time. There's only four left now.

"The 99p a pint at Wetherspoon is a publicity stunt, a loss-leader," he claimed. "The supermarkets have been selling beer for much less than that for ages."

St Austell Brewery declined to comment on how the 99p pint might affect business in its pubs across Cornwall.

But some publicans predicted a harsh winter ahead. Richard Martin, leaseholder of Richmonds Bar in Truro, said: "I've been in the pub trade for 12 years and I've never seen such a disappointing year.

"Support from the major breweries is disappointing as well. Notably, their shares have dropped massively and it's put us in a position where our business is now becoming unviable.

"I don't think I'm alone and the current economic climate doesn't help. Traditional pubs are part of the community but with these prices being offered, we cannot possibly compete.

"I could not buy a single pint for 99p – let alone sell it at that."

Meanwhile, campaigners against the binge-drinking culture criticised Wetherspoon for flying in the face of government efforts to limit price-led promotions.

"Alcohol is not an ordinary commodity like bread or milk," said Don Shenker, chief executive of Alcohol Concern.

"Alcohol causes harm to the nation's health and economy and there appears to be a strong link between cheap alcohol and the high levels of binge-drinking in the UK."

The pub chain, however, refuted any suggestion that its price cuts would fuel irresponsible drinking. "We believe our food and drink prices will allow people to enjoy a visit to a Wetherspoon pub without it costing them too much," said John Hutson, Wetherspoon chief executive.

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