This is the conclusion of a new report published today into the Guest Beer Agreement on the first anniversary of its launch. Introduced in April last year, the scheme allows pub tenants in Scotland to directly source their beer from local breweries and sell it in any format they wish including in both cask and keg draught beers. It aims to widen consumer choice, support local independent breweries and empower pub tenants.
The report includes the results of a new in-depth independent survey of more than half of pub tenants in Scotland, commissioned by the Society of Independent Brewers and Associates (SIBA), which shines a light on its effectiveness. The Scottish scheme is a trailblazer for the UK as a similar right does not currently exist in England and Wales.
The research shows that fewer than half (45%) of Scottish pub tenants were aware of their new right with tenants from five pub companies not aware of it at all. However, for those that were aware of it, the vast majority (71%) found it be useful for their pub businesses. This increased to 94% for those who have applied for an agreement. Eighty-six percent of those that had an agreement in place said it was improving trade.
While only a fifth had secured an agreement, the research showed significant interest with 1 in 10 having applied and a third saying they intend to apply. Disappointingly there were reports of pub companies dragging out the process and tenants receiving misleading advice about being required to renegotiate their tenancy.
A small but not insignificant number highlighted instances of intimidation and discouragement. One said that “it wouldn’t look good when it came to renewing their tenancy” and another that “the owner of our pub have strongly discouraged it”.
The report’s recommendations include having the Pubs Code Adjudicator, who’s responsible for enforcing the scheme, and pub companies do more to highlight the scheme and improve the information available to tenants.
SIBA Chief Executive Andy Slee said: “The new right to a guest beer is a trailblazer initiative in Scotland launched a year ago. For the first time, it allows pub tenants to have a direct relationship with local breweries and respond directly to consumer demand by serving a local independent beer.
“This in-depth research demonstrates that awareness of the scheme is still too low, but once a tenant is aware, its usefulness to their businesses, to trade and to consumers is crystal clear. There is more that pub companies and the Pubs Code Adjudicator can do to ensure tenants are better aware of the benefits of the scheme.”
SIBA Scottish Regional Director and Managing Director of Fyne Ales Jamie Delap said: “Where it’s been implemented, the Guest Beer Agreement is a win-win for Scottish brewers, pub tenants and beer drinkers. However this report highlights wrongful assertions and barriers that prevent more tenants from accessing the scheme. These need urgently addressing so that all Scottish tenants are fully aware of their rights under the Pubs Code.”
