Let’s face it, no one likes the idea of having to pay more for a pint, and so more than City analysts have had an ear out for what the competition watchdog would say on Heineken’s purchase of 1,900 pubs from Punch Taverns
The announcement by the Dutch giant that it is willing to sell off a number of pubs to appease the Competition and Markets Authority was something of an inevitability.
Avoiding an in-depth investigation is Heineken’s play here, and the CMA has until August to decide whether the plan succeeds in ensuring competition is maintained.
In other words, the CMA must judge whether pub goers are likely to see the price of their pint rise with Heineken controlling more of the market, or if the likes of Scotland’s burgeoning craft brewers will find it more difficult to access the on-trade market.
In the next few weeks the CMA will provide details on the 33 areas it believes could be impacted. We will also learn the precise number of pubs that Heineken plans to sell.
With the addition of 1,900 outlets taking its estate to almost 3,000, selling as few as 150 of these could “be acceptable to remedy the competition concerns”.
This butters no parsnips with the Scottish Licensed Trade Association, whose chief executive Paul Waterson accused Heineken of “box ticking”, and showing a “disregard for tied tenants as [it] looks to deliver value for the only people it cares about – shareholders”.
With Heineken committing to invest in its estate, the CMA is left to decide whether the plans will benefit consumers, tenants and suppliers – or only Heineken investors.
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