Pub industry must help politicians understand its problems

The head of one of the UK’s largest managed pub groups has admitted that the industry could do more to help politicians understand the challenges the licensed trade faces.

Mike Tye, who replaced Andrew Knight as managing director of Punch Taverns’ 900-strong Spirit group last July, said the trade needed to communicate better to ensure it does not get punished unduly on issues such as binge drinking. “As an industry we can be more effective in helping Government understand the issues we face,” he told Caterer.

Tye pointed to the proposal of minimum pricing to combat problem drinking, which is being championed in Scotland but hasn’t received support in Westminster. “Is minimum pricing per unit the answer? I doubt it, it sounds difficult (to implement),” he said. “What we need is a common sense approach.”

One area that Tye believes communication is succeeding is the contentious issue of beer duty, where he said there has been a realisation amongst officials that tax on alcohol could not continually be hiked up. “The Treasury’s tax take has been going down because of this but I feel that, in the last few weeks, there’s an understanding developing that it’s not sustainable,” he said.

Tye revealed plans to invest around £40m to £45m during the current financial year in the Spirit estate, which he conceded has been left alone too long. He also plans to start churning underperforming pubs again, although the overall estate size will not change dramatically.

Spirit is in the first phase of a six-month turnaround project to “get the basics right” and, as part of this, has overhauled its food offer with new menus across the business.

Scotland in favour of minimum pricing for alcohol >>

Government rejects call for minimum alcohol price >>

Pub leaders call for freeze in alcohol duty >>

Punch puts 1,000 pubs in to new turnaround division >>

Spirit to restructure in light of falling sales >>

Andrew Knight leaves Punch’s Spirit Group >>

By Chris Druce

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