OTS p18-19 Review Dec08.qxp 03/12/2008 13:34 Page 19
year review · business building
document by the Government also hinted that Belhaven was drawing to a close, the
Scottish pubcos continued to open
cigarette vending machines could be banned
new outlets, proving that good
company named his replacement as
from pubs, despite the fact that only 1% of
businesses can weather the storm.
managing director as Euan Venters, who took
tobacco sales come from the machines. over the role on 6 October.
Further consolidation loomed in the drinks There had been much speculation over
industry with news that InBev was set to what would become of Maxxium in the wake
swoop for American brewer Anheuser-Busch. of Vin + Spirt’s sale to Pernod Ricard earlier in
June also saw Justice Minister Kenny the year and in October it was revealed a new
MacAskill give OTS an in-depth interview company would be formed by Edrington and
discussing his plans for the trade, including Beam Global early in 2009. The other
outlining his planned ‘social responsibility fee’ Maxxium partner, Remy Cointreau announced
and plans to reduce the amount of harm plans to team up with William Grant & Sons to
caused by alcohol. launch a Europe-wide partnership.
July November
The Scottish Government finally unveiled its units in Aberdeen. As pubs began to gear up for Christmas, the
much talked about ‘discussion document’ on It also emerged in August that the current Society of Chief Officers of Trading Standards
the future of alcohol in the country. Among voluntary code in the drinks industry to print in Scotland published figures of its ‘Fair
the moves that were confirmed were health information on labelling could become Measure Fortnight’, which showed 46% of
proposals to raise the off-trade purchasing mandatory. pubs visited underserved their spirits
limit to 21, levy a social responsibility fee measures.
(SRF) on licensees, and introduce minimum September The Scottish Government’s Social
pricing. With the rainy and disappointing summer fast Responsibility Fee was given the backing of
There was a mixed response to the becoming a distant memory, the legislative senior police officers, while the SNP struggled
proposals with many welcoming the arguments continued in Scotland. OTS to gain support for its 21-sales policy from its
discussion. The SRF was widely condemned reported in September that a leading licensing own party.
however, with the trade believing it paid lawyer had called the legality of some of the Regrettably, BII made 18 employees
enough in rates already. Scottish Government’s proposals into redundant in another sign that the trade is
Down south meanwhile, it was announced question, claiming Holyrood did not have the struggling in the current climate. This was
that there would be a parliamentary inquiry authority to enact some of the mooted proved further with BPBA’s latest results,
into pubco’s treatment of their tenants, with measures. Other parties, from trade groups, to which showed a further 8% decrease in beer
the possibility of Scottish pubs being pubcos and drinks companies were lining up sales.
examined. And the InBev purchase of AB took to fire broadsides at the Government On the drinks front, S&N, now operating as
an unexpected turn, with InBev rumoured to proposals with words like ‘disillusionment’, part of the Heineken stable, announced it was
have asked AB shareholders if they wanted to ‘unfair’, and ‘unworkable’ cropping up time to end its distribution of Miller Beer to
replace the current board to push through the and again. concentrate on the S&N/Heineken range.
deal. And if you thought Edinburgh’s licensing
surplus was excessive, it emerged in December
August September that Glasgow could net a surplus As the year drew to a close the trade was
InBev didn’t need to go that far though as the of over £500,000 in the current financial year. dealt a final blow for the year by the man
£26bn offer was quickly accepted by the AB The board said any surplus would be used to who’d caused such outrage earlier in the year.
board, creating the biggest brewing company reduce future fees, but the trade in Glasgow The VAT reduction announced by Chancellor
in the world. was nevertheless reeling at the news. Alistair Darling will be offset in pubs by an 8%
Beer was big news in the trade in August September also saw the National Licensing rise in duty.
with many major brewers beginning to Conference take place in Aviemore, where This month also saw the completion of the
announce price increase to combat rising Kenny MacAskill revealed the Government InBev-AB deal, with the new company starting
costs in raw materials, energy and transport. was likely to introduce a variation of the ‘fit to trade as ABInBev.
This came on the back of figures published by and proper’ test. He reiterated that Holyrood It’s been a rocky road this year, and with
the British Beer & would not interfere in how local authorities the new Licensing Act coming into force on 1
Pub Association across the country implemented the Licensing September next year, the trade is set for
showing that beer Act, but he did admit that the transition period another busy period. What will become of
sales in pubs had was proving difficult for many. those who failed to hit the deadline for their
dropped 10.6% applications? Will the predicted late rush for
in the previous October PLH certificates result in delays? How will the
quarter. By the time October came around the SNP Government proceed with its plans for
Scottish pub Government’s deadline for responses to its the alcohol industry? Will the country turn the
operators had a alcohol strategy passed and the economic corner and avoid slipping into a lengthy
busy month with downturn was beginning to bite with recession? Times are certainly difficult for the
Maclay Inns companies beginning to go bust, such as CMC pub trade, but as OTS has been saying all
InBev’s purchase
opening its third Management, whose collapse saw 15 pubs year, those who have prepared themselves,
of AB was the
Paisley venue close. New lessees were immediately sought planned ahead and who continue to run
biggest deal of
and Dark Star to replace them. forward thinking dynamic small businesses will
the year
acquiring two And as Stuart Ross’ time at the helm of continue to survive.
www.55north.com/ots_home.asp · december 2008 · ots · 19 ·
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