OTS p18-19 Review Dec08.qxp 03/12/2008 13:34 Page 18
business building · year review
That was the year that was
As 2008 draws to a close OTS takes a look back at the events and decisions that have shaped the licensed
trade over the past 12 months. The year was dominated by legislation and gearing up for the new Licensing
Act, while there was heavy consolidation in the drinks industry, and an economic downturn few had predicted.
January missed the March deadline.
The year kicked off with the trade still on Alistair Darling became something of a hate
tenterhooks over how much it would have to figure for the pub trade with a duty increase
pay to apply for a licence under the Licensing across the board on alcohol. Many industry
Act (Scotland) 2005. An initial deferment groups predicted the closure of countless
raised hopes but the SNP-led Scottish pubs, and Mr Darling found himself banned
Government opted to near double the fees, from his local pub, then hundreds of others
with Justice Secretary Kenny MacAskill – a across the country.
man who would dominate the news pages for The Scottish Beer & Pub Association also
much of the year – defending the decision, began legal proceedings against Glasgow’s
saying: We are in danger of opting for a Licensing Board, with the latter claiming a
bargain basement licensing system that personal licence holder had to present at all
doesn’t meet the needs of Scotland.” times drinks were sold, something contrary to
January also saw Scottish & Newcastle the Licensing Act itself.
Kenny MacAskill was
finally sit down with Carlsberg and Heineken At On-Trade Scotland, we teamed up to be frequently in the news this year.
to discuss the sales of the Scottish brewer. primary media partner with Best Bar None in
Glasgow, helping promote responsible practice April also saw the relaunch of On-Trade
February across the trade. Scotland, with the magazine being given a
Many licensees were getting ready to apply for complete overhaul, but continuing to lead the
a new licence, and the transition period that April way in providing the licensed trade with sound
would see every licensed premises in Health Minister Shona Robison announced business advice.
Scotland have to apply for a new licence or Scottish Government plans to change
face losing it was almost upon us. Scotland’s relationship with alcohol, and it May
February also saw the sale of S&N agreed. The proved to be the most controversial news of There was major trade news in both of
deal, worth £7.8bn was seen by the industry the year. Initially this involved raising the legal Scotland’s major cities this month with the
as worth the wait for S&N shareholders. age for buying alcohol in the off-trade to 21, SBPA claiming victory in its legal battle with
A hedge fund disaster also saw Mitchells & but more was to follow. Glasgow’s licensing board, while in the capital,
Butler post losses of £274m, which prompted There was further major consolidation in Edinburgh’s board revealed a surplus of
rumours of a takeover. Punch Taverns entered the drinks industry when Pernod Ricard £233,000, causing widespread anger from the
into talks with M&B in February with a view to acquired Absolut vodka owner Vin + Spirit. city’s licensees. The SBPA’s victory in Glasgow
a £3.7bn deal that would have seen the The company claimed the deal made it the came after the board climbed down and
combined company holding over 10,000 “co-leader” in the global wine and spirit changed its policy, bringing a halt to
outlets. industry. proceedings before they reached court. SBPA
This month also saw Punch pull out of the members were awarded 75% of their costs.
March proposed merger with M&B, while April 28 The results from a national test purchasing
Spring brought with it the first application saw the end of Scottish & Newcastle as a scheme were published in May, and although
deadline for the new Licensing Act, and company, with Heineken taking over the UK very few on-trade premises were tested,
reports that up to 20% of licensees had business. licensees were warned to be wary, as one
failure could result in prosecution.
Beer saw prices rise and consumption drop
It was a sad month for the Scottish brewing
throughout 2008, making life difficult for licensees.
industry with the news that Arran Brewery had
entered administration. There was better news
on the whisky front with Scottish Leader, Inver
House Distillers and Bruichladdich all posting
extremely positive year-end results.
June
Summer kicked off with the news that toilet
provisions had become a major issue with
premises applications. Many licensing boards
were taking the opportunity to force pubs to
upgrade facilities, which left many in danger of
losing their licence due to not having the
funds to make such changes. A consultation
· 18 · ots ·december 2008 · www.55north.com/ots_home.asp
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