Friday, December 04, 2009

Mark Daniels: The Myth of the £2 pint...

3 December, 2009

Good Heavens Mark, what's happened to your objectivity recently? You're beginning to sound so much like Ted Tuppen, you could get a cash margin by writing the scripts for his public appearances.

You're describing the pricing and selling of beer as a theoretical construct but life just isn't like that. People aren't spreadsheets, well, pubco accountants are, real people - the ones who pull pints and those who drink them - don't work things out like that.

If the tie went people would adjust their prices downwards by an amount that would leave the cash margin they need and increase their GP% at the same time, making their business more profitable, leaving more cash in hand and giving their customers a better price. The tie going (and there is NO sound argument that can stand up to any kind of rational scrutiny for ANY non brewing company being allowed to retain the tie) wouldn't force anyone to have to increase sales to retain their cash margin, the tie going will just give everyone a better deal and get rid of the only component in the framework of the pub industry that is irrelevant to the health and success of publicans and their pubs - the non brewing pubcos.

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