Heineken pub and bar business reviewed by PCA for "beer tie" | Business

The activity of Heineken's cafes and bars must be investigated to determine whether it imposes unfair conditions on publicans who attempt to cut the "beer fitting", the age-old arrangement by which they buy beer to the owner of their premises.

The ad pub code adjudicator (PCA), the regulator criticized for his stubborn attitude toward hedging pub companies, said he had launched his first behavioral survey. Star Pubs & Bars owned by Heineken since July 2016..

PCA will examine whether Star has attempted to impose unfair conditions when tenants seek a "market-only annuity" (MRO) option, a device designed to allow tenants to break the link between beer and wine. coffee, but which critics say is ineffective and often has conditions.

Advertisers who rent their premises in Star will be asked if the company has tried to force them to store only Heineken beer, or unreasonable volume of Dutch beer company brands, or other beverages. for which she has a financial interest.

They will also be asked if Heineken has attempted to influence the retail price of its own brands under an MRO agreement.

Fiona Dickie, Coffee Code Publishing Decision Assistant, said, "It is important for Star's tenants and other interested parties to provide us with information to support this investigation. Their information will help us determine if the publication code has been broken and, if so, what other steps should be taken. "

The survey covers the period since the introduction of the Pub Code in 2016, which governs companies in more than 500 establishments, including Admiral Taverns, Ei Group (formerly Enterprise Inns), Greene King, Marston's and Punch Tavern.

The code is supposed to guarantee "large advertising companies" "fair and lawful transactions" and guarantee that they are no less well off than they would be if they were released from beer.

The MRO section of the code aims to provide a system whereby the owners can escape the link by negotiating a new agreement with their publishing company, with the PCA overseeing an arbitration process.

Advertisers have often criticized the MRO option for inefficiency and the PCA for not doing enough to preserve its integrity.

All who submit evidence have until August 5 and will not be identified in the final report.

A spokesman Star Pubs & Bars said: "The legislation makes it clear that as a brewer we have the right to make sure that the ads we own sell our beer and our cider. This reflects the significant ongoing investment we make and the jobs we support in our UK breweries, cider houses and supply chains.

"Although the principle of the brewers' storage requirement is clear, this part of the new legislation is complex and is not clearly defined in the publications code. We therefore hope that this survey will provide the certainty and clarity that we have repeatedly demanded over the past three years. We will of course cooperate fully with the PCA while defending our position with determination. "