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Enterprise Inns boss slams stores over cut-price booze

Simon English
22 Jul 2008


Britain's biggest pub landlord today launched a scathing attack on irresponsible supermarkets for selling cut-price alcohol, and called on the Government to intervene.

Enterprise Inns chief executive Ted Tuppen reflected on a tough year for the pub trade, which has seen share prices devastated as investors bet the industry would suffer from the economic downturn. Enterprise has been hit less than most but the smoking ban, increases in alcohol duty and cheap competition from Tesco remain problematic.

"We would call into question the strategy of the major supermarkets, some of whom continue to use alcohol as a traffic builder, often selling multipacks at below cost into a market place where consumption is almost entirely unregulated," he said. "In the absence of responsible retailing, we would expect the Government to introduce sensible legislation."

Enterprise has 7800 tenanted and leasehold pubs. Tuppen said recent rises in alcohol tax would merely hurt pubs, while doing nothing to address binge drinking and the bad behaviour that follows it.

It said there has been "no material deterioration" in the financial health of its licensees in the 42 weeks to 19 July. Some landlords disagree. The Fair Pint campaign has succeeded in opening another inquiry by MPs into the large pub companies. Tenants claim Enterprise and others ratchet up rents unfairly, a claim the MPs are investigating.

Enterprise is working towards converting into a real estate investment trust, a move it hopes will allow investors to benefit from the value of the property estate. It bought 51 pubs in the period for £44 million, and disposed of 45 in less desirable areas.

Enterprise shares have tumbled from a year high of 721p. Today, they fell 21¾p, or 6%, to 324p.

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