Tennent’s freezes prices to Scottish free-trade for 2013

John Gilligan

Tennent Caledonian has announced that it will not increase the wholesale selling price of its leading brands – Tennent’s Lager, Caledonia Best and Magners Golden Draught – for Scotland’s free on-trade in 2013. The news comes only weeks some of the brewers major competitors revealed their price rises.
This decision will provide a welcome financial boost for free on-trade outlets and is another strong signal of the brewer’s understanding and continued support for Scotland’s pubs, clubs and hotels.
John Gilligan, Managing Director of Tennent Caledonian, commented, “We believe that Scotland’s pubs, clubs and hotels are at the heart of their communities up and down the country and it’s crucial that they continue to thrive. These are tough times for the free on-trade and we will continue to support and invest where we can, helping operators control their costs, develop their businesses and build a responsible drinking environment for their customers. Today’s announcement is further evidence of this commitment and will make a real difference to the Scottish free on-trade in the year ahead.”
This 2013 price freeze follows a five year period which has seen Tennent Caledonian consistently implement the lowest price increases in the Scottish free on-trade amongst major brewers.
Paul Waterson, Chief Executive of the Scottish Licensed Trade Association, commented, ‘Once again, Tennent’s has shown its support and commitment to Scotland’s pubs, clubs and nightclubs. The announcement that the business will be applying a price freeze on all of its major brands is welcome news at a very difficult time for the on-trade in Scotland. This price freeze will certainly help our members to control their costs and drive footfall to their premises, which is much needed.’
Tennent Caledonian customer Mark Horner, the owner of Legends in East Kilbride, also welcomed the announcement. He commented, ‘This price freeze is welcome news for publicans across Scotland. A move like this one from Tennent’s is rare in our business and, as our costs increase, it is further evidence of their great support and commitment to the trade.”
Over the last two years, Tennent Caledonian has also provided valuable funding of more than £11 million to support on-trade businesses looking to expand or improve their offering.
Molson Coors increased wholesale prices by an average of 3.1% equivalent to 5p a pint AB Inbev increased theirs by 4.7% and Heineken’s rise, which has just kicked in, is equivalent to £14.30 a barrel. Wells & Young, the brewer behind McEwan’s is not raising its prices while Belhaven has not yet revealed its hand.