Cheap booze in supermarkets is killing off pubs, say landlords

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Tuesday, October 07, 2008
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This is Derbyshire

FOR Derby landlord Michael Vickers, the figures just don't stack up.

At his pub, the Coach and Horses, in Mansfield Road, Chester Green, it costs him £1 to buy in bottles of Stella Artois lager to sell behind his bar.

But when he does his weekly shopping at the local supermarket, he is horrified to see 20 bottles of Stella on sale for just £5, in a promotional deal.

"With crazy prices like that, you simply cannot compete," said Michael.

The 56-year-old father-of-one, who runs the pub with wife Deborah, admits he is making a good living at the moment – but cheap beer in the shops was still causing him dismay.

"The Garden City just around the corner closed down last month and this is just one of the reason that pubs, generally, are feeling the pinch."

According to the British Beer and Pub Association, five pubs are shutting their doors every day in the country.

A total of 1,409 hostelries closed in the UK in 2007 compared with 216 in 2006 and 102 in 2005. This year, the figure is likely to top 2,000.

A study by the Derby branch of the Campaign for Real Ale has revealed that more than 50 pubs have called time since the start of the decade – around 10 per cent of the total in its survey area, which stretches from Melbourne to Ashbourne and Alfreton.

Only last month, as well as the closure of the Garden City, the Blue Dog bar in Sadler Gate closed.

And elsewhere across the city, shutters have boarded up the Greyhound, in Ashbourne Road; the Cock Inn, in Muggington; the Red Lion, in Chellaston; and the Grange, in Pear Tree.

Also possibly set to close is the Blue Boy, in Wiltshire Road, Chaddesden, which was originally heralded as a success story after the pub was given a £366,000 facelift thanks to a Government grant.

The Late Bar, in Ford Street, is currently up for sale and other pubs, such as the Grampian, in Sinfin, and the Swan and Salmon, in Ashbourne Road, are offered to let.

The Campaign for Real Ale claims that hugely discounted alcohol in supermarkets is the reason for the steep decline in the pub trade, with a pricing survey revealing cheap beer selling at less than 60p a pint.

Many publicans agree, adding that the smoking ban, introduced in July 2007, has also hit them hard as drinkers choose to stay away.

Roger Protz, editor of CAMRA's Good Beer Guide, said: "Cheap beer in supermarkets, often sold at less than the price of bottled water, is killing the British pub.

"Over 150 pubs a month are closing and the main reason is simple: People are abandoning their locals because they can buy cheap supermarket beer at a fraction of the price charged by pubs."

His views were echoed by landlords and bar managers across Derby who have said that they are working longer hours – often up to 80 a week – and having to provide more entertainment to keep their customers happy.

Steve Kirk has run the Neptune, in St Peter's Street, for 11 years.

The 47-year-old said: "It is a real battle at the moment, the hardest it has ever been.

"Around 70% of my regulars are smokers and the ban has hit hard.

"I would estimate that I have lost around 10% of my trade since the ban came in.

"Cheap booze in the shops hasn't helped either as people simply stay at home because the prices are so cheap.

"My son Liam is 17 years old and wants to follow me into the pub trade, but I am trying to talk him out of it."

Glyn and Betty Newbold, both 49, have run the Duke of Clarence, in Mansfield Road, for almost four years.

They said that being a traditional local pub with a number of successful darts teams had helped to keep them afloat as other customers have stayed away.

Mr Newbold said: "I was in the supermarket and they were selling three cases of lager for £15.

"That works out at less than 42p for a bottle that I have to sell at more than £2.

"And when the bad weather came after the smoking ban came in last year, custom started to drop off as well.

"The darts teams that we have been running here have helped us immensely and we offer different types of entertainment most nights.

"We are having to diversify to keep going.

"Last week, our darts team played a match against a pub team in another part of Derby and were there from around 8.30pm until 11pm.

"They said that, apart from them, there were only four other people there all night.

"We have got to cover all the bases.

"Publicans cannot open the doors and just wait for the people to come in from outside.

"If it has got to that stage for some, then they may as well just throw in the towel," he added.

The British Beer and Pub Association, which commissioned the study, is the UK's leading organisation representing the brewing and pub sector.

Its members account for 98% of the beer brewed in the UK and own nearly two thirds of Britain's 57,000 pubs.

Their latest figures show that sales of beer are now at their lowest level since the Great Depression of the 1930s.

And it claims that possible further tax increases from the Government could lead to the closure of many more pubs.

Rob Hayward, chief executive of the association, said: "Thousands of much-loved pubs are under threat.

"They are at the heart of every community and a major tourist draw for Britain and many more are facing closure."

CAMRA claims that as a result of a 10% beer tax increase in this year's budget, prices in pubs have increased by 4.4% in the last year and the average price of a pint of lager in a pub is now £2.82.

In contrast, prices in the shops have fallen by 1% as a result of promotions.

A recent CAMRA pricing survey undertaken across supermarkets last month revealed promotions that included Sainsbury's selling three cases of Fosters lager for £20 and Asda selling three cases of John Smith's Smooth bitter for £20 – both the equivalent of just 57.4p per pint.

Mr Protz said: "When a pub closes, the community's heart is ripped out and dies.

"People go to pubs for friendship, conversation, to enjoy an affordable meal or just quietly read a newspaper.

"Supermarkets have no idea what happens to cheap alcohol once it leaves their stores.

"In too many cases, it's passed on to under-age drinkers.

"It's the supermarkets, not pubs, that encourage binge drinking with their massively-discounted sales of alcohol."

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21 Comments

  • Profile image for This is Derbyshire

    by malcolm, spondon

    Tuesday, October 07 2008, 2:17PM

    “I thought the drinks at supermarkets where sold in smaller botles its getting hard to find a social pub now most sell meals and do-not allow smoking unless its out side so it's not a welcome sight nowadays.”

  • Profile image for This is Derbyshire

    by Mr Bronson, belper

    Tuesday, October 07 2008, 1:39PM

    “Restaurants have always charged over the odds for drinks. I think one of the main causes is just people attitudes and lifestyles have changed and the need for a public house on every street corner is just not required. There are so much more entertainment and activity options for people do at home and elsewhere. Days of going down to the local every evening for a drink, darts and dom' are dead.”

  • Profile image for This is Derbyshire

    by Dave Derwent, Derwent

    Tuesday, October 07 2008, 1:27PM

    “I agree that some landlords "have their hands tied" when setting prices - but there are also some people in the trade who are plainly profiteering. Example - At a local restaurant a 660ml bottle of lager costs a massive £4.95 , yes you read it right - £4.95 ! The same thing at a supermarket is £1. What a gigsntic rip-off !”

  • Profile image for This is Derbyshire

    by Dawn, Derby

    Tuesday, October 07 2008, 1:15PM

    “I haven't been into a pub since the smoking ban. What a ridiculous piece of legislation that was.
    Where are all of the non-smoker who told us they would use pubs if they were smoke-free?
    Incidently, my old-man (non-smoker) doesn't go out either, so the smoking ban did nothing for him either.”

  • Profile image for This is Derbyshire

    by Mr Bronson, belper

    Tuesday, October 07 2008, 1:14PM

    “I'm happy with the smoking ban, its just seems that everybody (breweries, taxman) above the pub owner wants a larger cut. That's what killing the industry and that a larger precentage of fathers/parents want to spend time together as a family rather than down the boozer. Don't get me wrong I like a good pint or two, but I'd rather be having fun with my family and most of the family style pubs are pretty pants in my opinion.”

  • Profile image for This is Derbyshire

    by Charlie, CHELLASTON DERBY

    Tuesday, October 07 2008, 12:49PM

    “How I agree with Paul of Burton Upon Trent; we used to go out 2 or 3 times a week ( pre smoking ban ) but we will not pay for our drinks and then have to sit / stand outside ( we can do this at home if we so choose and sit in our garden with our supermarket beers ). They should have made the smoking ban down to the landlords choice; if it were a non-smoking pub then smokers wouldnt go there. If it were a smoking pub then the landlord would Im sure see his profits soar. Sadly we have to live with a rotten government who's hell bent on brining misery to everyone's lives.

    One thing on reading the above - not sure if Steve Kirk has ' knocked ' a few years off his age 47 ? More like nearly 50 ( I went to school with him and he was in my class !!! ). Tut !!”

  • Profile image for This is Derbyshire

    by joe, derby

    Tuesday, October 07 2008, 12:34PM

    “My parents have had a pub for the last 20 odd years until recently - they have seen huge increases from breweries that combined with the VAT, increased rent, smoking ban and stupid costs from sky tv for sports has seen the industry struggle to make a profit. Landlords simply cannot buy alcohol from any supplier as they are tied to the breweries for the majority of their beer and have to pay the prices that the brewery state.”

  • Profile image for This is Derbyshire

    by Simon, Derby

    Tuesday, October 07 2008, 12:08PM

    “I blame the council”

  • Profile image for This is Derbyshire

    by JamesK, Derby

    Tuesday, October 07 2008, 11:52AM

    “The stoical drinkers who formed the backbone of most pubs have long been driven out by we all know what. Couple that with Supermarket chains being able dictate the price they pay for their booze because of the vast amounts they buy goes a long way to answering the problem. If, due to mis - management of finances both in this country and abroad we do enter a period of recession things can only get worse for the bars and pubs as people count their pennies, stay at home, and get their booze etc from the supermarket.”

  • Profile image for This is Derbyshire

    by paul wheatley, Burton On Trent

    Tuesday, October 07 2008, 11:32AM

    “fascinating reading - I too feel for the poor old landlord - But I have to say - "stand up and be counted" - It is time you ALL lobbied the government and local politicians concerning your livelyhoods - I am a smoker and i object to buying beer to stand outside to drink it - when are you going to tell these bloody do-gooders to stop interferring in the running of your businesses, It is your pocket that they are hitting - As been said "The public House" is the hub of the community - remove the community and we don't need public houses.
    Legislation has removed your communities with alienating smokers and non smokers - bring back the old "tap room" for smokers and watch the communities and customers come back. -
    Paul from Burton”

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