Castle Rock steadies the price

Castle Rock is absorbing the 4p per pint beer duty increase on its own brand ales at its 23 pubs across the East Midlands and South Yorkshire. Chairman and chief executive, Chris Holmes says he is taking this stand as it is vital that pubs remain competitive against supermarket off-sales.

“It’s impossible to work out how much this will cost. But, our customers are very loyal and I think it’s important that we do something positive for them at a time when all household bills from gas to council tax are rising and mortgages are becoming prohibitive,” he says.

“We were expecting the chancellor to announce a duty increase; but not one as high as this. And, if it’s all about youngsters and binge drinking, why did he choose to target relatively low strength ale? It’s my view that he would have been better to understand and promote the views of those of us in the industry who actually care about society by targeting the high strength, easily consumed, drinks at the heart of binge drinking.

“Ninety five per cent of our customers are ‘regulars’, we want to keep them, and if it means less profit for a while then so be it,” says Chris.

Adds Colin Wilde, Castle Rock's Commercial Director; "Over the last 12 months malt (40%), hops (300%) and energy (30%) have all increased by a staggering amount due to extraordinary market conditions. This is before we look at business rates, diesel, electricity, wages, water and the cost of implementing other government legislation and policies. If the chancellor wants to see the UK's brewing and pub industry snuffed out and to see pubs and breweries close then maybe all he really needs is patience. He should have at least waited 12 months to see what is left before wielding the sledgehammer now. Putting through a 3 times inflation duty rise is overkill, it will increase cross channel imports, reduce investment in the quality end of the industry and with significant downward multiplier effects to the general economy; let's be realistic, this will mean job losses. The irony is that this measure will actually collect less total duty revenue from beer than last year."

Continues Colin Wilde; "We are fully aware of the recent media furore on the problems associated with excessive alcohol consumption, binge drinking and the myth of 24 hour drinking. All this fails to recognise that the pub is part of the solution to any such problem. The pub is a social place and at every point incorporating a controlled sale with controlled consumption. Where the average pint costs nearly £3.00 in a pub but is frequently available for often much less than a £1 in a supermarket or off licence where all of the consumption, possibly to be excessive, is to be in an unknown and uncontrolled environment by unknown persons.

"We want to make our customers aware of how government policy is threatening our way of life and that we believe that those who are supposed to be looking the country's best interests don't appear to care very much at all. We're suggesting that customer's put the 4p into one of our bar top charity boxes so at least some good can come of this."