Pubs Code Adjudicator launches investigation into Heineken's Star Pubs & Bars business: The Pubs Code Adjudicator has launched an investigation into Star Pubs & Bars, part of the Heineken Group. This is the first investigation by the Pubs Code Adjudicator and Deputy Pubs Code Adjudicator and follows a period of engagement with the company. The adjudicators have reasonable grounds to suspect Star has failed to comply with the Pubs Code by using unreasonable stocking terms in proposed free-of-tie Market Rent Only (MRO) tenancies. The investigation will cover the period from 21 July 2016 when the Pubs Code became law to 10 July 2019. Pubs Code Adjudicator Paul Newby said: “Fiona Dickie and I have decided to launch this investigation to understand the extent to which the Pubs Code may have been broken and the potential impact on Star tenants.” Fiona Dickie, the deputy Pubs Code Adjudicator, added: “Where tenants of a brewer business regulated by the Pubs Code exercise their right to ask to go free of tie they may still be required to stock that brewer’s beer or cider within limits set out under the Pubs Code. This investigation concerns whether Star has been going beyond those limits by offering non-compliant terms. It is important Star tenants and other interested parties provide us with information to support this investigation. Their information will help us to determine whether the Pubs Code has been broken and, if so, what further action should be taken. Any tenants and other interested parties who provide information for the purposes of the investigation will not be identified in the investigation report without their consent.” As part of this call for evidence, the Pubs Code Adjudicator and Deputy Adjudicator are particularly keen to hear from any Star tenants who have been offered tenancy terms following service of an MRO notice that included the following, whether they accepted them or not – a requirement for all (or virtually all) of the keg beer stocked to be produced by Heineken;
 a requirement to stock brands produced by businesses other than Star or group undertakings of Star; any other requirement to stock an unreasonably high proportion of Heineken brands or brands in which Heineken has a commercial interest; a term that seeks to influence the retail selling price of Heineken brands or brands in which Heineken has a commercial interest. The deadline for submission of evidence is 5pm on 7 August 2019. Evidence should be sent to investigations@pubscodeadjudicator.gov.uk. A Star Pubs & Bars spokesman said: “The legislation is clear that as a brewer we have the right to ensure the pubs we own sell our beer and cider. This reflects the significant ongoing investment we make and the jobs we support in our UK breweries, cideries and supply chain. While the principle of the brewers stocking requirement is clear, this part of the new legislation is complex and not clearly defined in the Pubs Code. We therefore hope this investigation will provide the certainty and clarity we have sought repeatedly over the past three years. We will of course co-operate fully with the Pubs Code Adjudicator while robustly defending our position." 

Wetherspoon reports like-for-like sales up 6.9%: JD Wetherspoon has reported like-for-like sales increased by 6.9% in the ten weeks to 7 July and total sales increased by 6.6%. Year-to-date like-for-like sales have increased by 6.7% and total sales increased by 7.4%. The company stated: "Since the start of the financial year, the company has opened five pubs and disposed of nine. No further openings are expected in the current financial year. At this stage, about £3m of exceptional, non-cash losses are expected in this financial year, mainly a result of pub disposals which were below the value in our balance sheet. In the current financial year to date, the company has spent £71m on buying the freeholds of pubs of which it was previously the tenant and has bought back £5.4m of the company's shares. The company remains in a sound financial position. Net debt at the end of this financial year is expected to be about £745m.” Chairman Tim Martin said: "The main issue for shareholders, which dominates debate, relates to the nature of the UK's post-Brexit relationship with the EU. The dichotomy between a 'no-deal' Brexit and a 'deal', as it is often portrayed in the media, politics and business, is highly misleading. The term ‘no-deal’ really means 'multi-deal' – a multitude of deals agreed between individuals, businesses, governments and other organisations. In contrast the term 'deal' refers to a 'mono-deal' – a single overarching agreement, which aims to govern the entire relationship between the UK and the EU. In reality, a multi-deal Brexit (ie no-deal) is already proceeding at pace. Jean Marc Puissesseau, the boss of the port of Calais, has said ‘there will not be any delay’ in Calais. Ryanair has said fears about planes not flying post-Brexit ‘is no longer a risk’. British Airways agrees. Wetherspoon, for example, has made arrangements to replace French champagne and brandy, and German beer, with alternatives from the UK, Australia and America. In addition, most spirits and beer exports to the EU from non-EU countries are not subject to tariffs, in any event. Initial fears about huge post-referendum job losses in the City of London have proved to be wide of the mark, as legal and practical arrangements have been made. These sorts of deals and arrangements are the tip of a giant iceberg of similar transactions, across the trading spectrum, negotiated and facilitated by individuals, businesses and civil servants – the negative undertone of no-deal is an illusion. The real issue for the UK relates to the desirability of an overarching mono-deal, governing all aspects of the UK's future relationship with the EU, as envisaged in Theresa May's withdrawal agreement. The multi-deal approach, which immediately allows the UK to trade freely with the rest of the world, is a better alternative. As the House of Lords said in March 2017, there is then no legal liability to make any payments to the EU. It enables the UK to regain control of fishing and to eliminate tariffs on thousands of non-EU imports, such as bananas, rice, wine and children's clothes – many of which are not produced in the UK. Democratic accountability will also be improved – the most important determinant of economic success. A complex and overarching mono-deal, agreed under duress, is unnecessary and counterproductive. It would reduce the flexibility of UK businesses and parliament in the future. The multi-deal approach is simpler, safer and will yield immediate dividends. As regards Wetherspoon, the company's expectation for our annual results is unchanged for the current financial year."

Ten Entertainment reports strong first half: Ten Entertainment Group, the operator of 45 bowling and family entertainment centres, has reported sales of £41.4m for the 26 weeks to 30 June 2019. Like-for-like sales were up 7.4%. The company stated: “The group traded well during the first half of the financial year, with total sales growth of 9.6% and like-for-like sales growth of 7.4%. The half benefited in like-for-like sales growth as a result of the comparative period experiencing extreme hot weather conditions during May and June 2018. Underlying like-for-like growth remains stable and encouraging. The group has continued to expand its estate with the acquisition of Southport in the first quarter and Falkirk in the second quarter, bringing the current total number of sites to 45. Both were existing operating bowling centres and are now undergoing Tenpinisation through a targeted investment programme to improve sales performance and profitability. These sites will make a profit contribution in 2020. The business has accelerated its focus on investment in the foundations of improved customer experience; more targeted marketing and online activity; and product innovation in the first half. These investments will drive long-term growth and will begin to show benefits towards the end of the second half .Group adjusted Ebitda performance for the first half is expected to be in in line with our expectations, and the business is on track to meet our expectations for the full year." Chief executive Duncan Garrood said: “The business has shown strong growth in the first half driven by the continuous improvement of the quality of the customer proposition and accelerated investment in digital marketing. Our expansion plans are on track with the acquisition of two sites in the first half and we are very focused on acquiring further sites in the second half. We look forward to delivering another year of profitable progress.”