Pub giant JD Wetherspoons has announced that it is pulling Heineken’s brands out of its pubs following a disagreement in the Republic of Ireland. According to JD Wetherspoon, who have traded with the company for 35 years, Heineken Ireland demanded personal guarantees from Wetherspoon chief executive, John Hutson, in order to supply products for its new Dun Laoghaire pub in the Republic of Ireland. The brewer also declined to supply Heineken lager (Ireland’s biggest-selling draught beer) and Murphy’s stout to the pub.
In a statement Wetherspoon chairman Tim Martin said, “We have been trading with Heineken for 35 years and they have never requested personal guarantees before. It’s obstructive to do so now, especially when we made record profits of around £80 million last year.
He continued, “The refusal to supply Heineken lager and Murphy’s just before the opening of our new pub in Dun Laoghaire, which represents an investment by us of nearly four million Euros, is unacceptable and hard to understand.”
The fall-out could cost Heineken £60m, that is the estimate put on the value of the JD Wetherspoon business, who currently 926 pubs in the UK and Republic of Ireland.
It’s not the first time that JD Wetherspoons have been unable to agree commercial terms with a drinks partner. The company also parted company with Diageo’s Guinness brand after failing to agree on price.
A spokesman for Heineken UK said “We are aware of the comments made by JD Wetherspoon and its Chairman this morning. Heineken UK has had a long standing and successful relationship with JDW in the UK market over a 35 year period, and it is unfortunate that commercial issues in Ireland between Heineken Ireland and JD Wetherspoon have led to the current situation. We are seeking a resolution as soon as possible, and it is not our intention to comment in any further detail at this point.”
