Heineken slapped with £2 million fine for "serious" breaches of pub code

PUB and beer giant Heineken was today slapped with a £2 million fine and lambasted by the watchdog for “seriously and repeatedly” taking advantage of struggling landlords in a breach of the rules that lasted at least three years.

The Pubs Code Adjudicator Fiona Dickie said Heineken’s Star Pubs and Bars business forced the pubs to sell its own beer despite repeated warnings that its approach was “unreasonable”.

Star Pubs and Bars runs 2500 UK pubs, of which 239 are in London, making it one of the biggest operators. It is the second biggest beer company in the world, a position it protected by rejecting the desire of pubs to sell competing drinks.

The PCA found that between July 2016 and July 2019 Heineken effectively bullied landlords in ways that were contrary to the pub code, “crude”, and not in the interests of consumers.

The ruling noted Heineken, “failed to heed statutory advice, the PCA's regulatory engagement and learnings from arbitration awards. It did not engage frankly and transparently with its tenants or meet the standards required of a regulated business when engaging with the PCA. Where it did change its approach, the efforts it made to comply were for the most part inadequate and not credible."

Today’s ruling is a victory for pub landlords trying to free themselves from often onerous deals with beer giants. They have long complained that there is a huge difference between the promises made when contracts are signed with the reality of dealing with a major brewer.

The Star Pubs website brags of its “latest support for licensees through Covid pandemic” and notes: “Being a great publican is about so much more than pulling great pints. You need to have a way with people. To listen and care.”

Dickie said Heineken, founded in 1864 with annual revenues of more than £20 billion, must “change its mindset” and give landlords more freedom to adapt to “local conditions and changing taste”.

Stories of abuse of small publicans by large landlords have been legion in the industry for years.

Heineken responded that it is a “responsible business” that strives to “the highest levels of professionalism”.

Lawson Mountstevens, managing director, Star Pubs & Bars: “We are deeply disappointed and frustrated at the outcome of this investigation. There are many aspects of the report that we fundamentally disagree with and we are actively considering an appeal.”