Scottish pub tenants’ newly acquired right to stock a guest beer outwith their beer tie is already benefitting those who have used it – but many others are either unaware of this new right, or missing out because of ‘barriers’ being put in their way.
This is the conclusion of a new report into the Guest Beer Agreement, released on the first anniversary of its launch by the Society of Independent Brewers and Associates (SIBA).
Introduced in April last year as part of the Scottish Pubs Code legislation, the Guest Beer scheme explicitly 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.
The stated aims of the new pub tenancy rule is to widen consumer choice, support local independent breweries and empower pub tenants. The Scottish scheme is described as a ‘trailblazer’ for the UK, as a similar guest beer right does not yet exist in England and Wales.
SIBA’s in-depth independent survey of more than half of pub tenants in Scotland found that fewer than half of them (45%) were aware of their new right, with tenants from five pub companies not aware of it at all.
Conversely, for those that were aware of it, the vast majority (71%) found it be useful for their pub businesses. This approval increased to 94% for those who have applied for an agreement.
No less than 86% of those that had a guest beer agreement in place said it was improving trade.
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 said it was disappointed at 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 of respondents highlighted instances of what was described as ‘intimidation and discouragement’ from landlord representatives.
SIBA’s 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.”
The report recommends that the Pubs Code Adjudicator, who is responsible for enforcing the scheme, and the pub companies themselves, do more to highlight the Guest Beer scheme and improve the information available to tenants.
