Union issues stark warning for jobs in the pub trade

15th September 2010, 12:20pm

Union, the GMB, has issued one of its starkest warnings for the pub trade to date saying the industry will disintegrate under “ the poison of high rents and artificially inflated prices”.

A new GMB study shows that the amount of alcohol sold in Britain's pubs was a third higher in 2002 than now.

And the union blames the pub companies: "This decline in sales is a result of the artificially high prices that tied pub tenants have to charge to recover the high wet and dry rents charged by the pubcos who own the freehold of the pub properties."

For every four drinks sold in 2002 pubs now sell three. Alcohol consumption in the on trade has fallen every single year since 2002. In 2009 consumption in the on-trade was 24.5% lower than it was in 2002.

By contrast, consumption of alcohol supplied by supermarkets and off-licenses grew every year to 2008 when it was 21.7% higher than in 2002.

The statement concluded by suggesting that tied tenants continue to sign up to the GMB in attempt to get things changed.

"The tied tenants are forced to buy their wholesale supply of drinks from the pubco at double free market rates (i.e. the wet rent) and are paying dry rents that are up to four times open market rents.

"This adds approximately £1 to the retail price of drinks sold in these pubs. Tied tenants have been joining GMB to try to get this system changed."

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