Pubs and the brewing industry: cheaper, cleaner and greener?

Rental prices remain significantly lower for pubs than wine bars all over the UK, according to a recent survey. 

Property information provider Fleurets.com found that in London’s West End, Wales and the Midlands annual rental prices for wine bar lessees were on average double the price of traditional public house rentals in the same area. 

Rental market values for pubs for sale continue to vary widely based on geographical location; nevertheless, countrywide, pubs are seen as the cheaper option for potential publicans or bar owners when compared to high street cocktail bars.

In the North of England the discrepancy is at its widest, with average annual rental prices being £111,443, nearly three times higher than in pubs, which average £39,442.

The highest pub rental values in the country are, perhaps unsurprisingly, in London and the South East, although the survey indicates that these have fallen to the same levels as 2007. In comparison, average lease values of pubs in the Midlands have increased by 19.5% in the last five years.

There may also be a cost impact for budding publicans as a result of news from the British Beer & Pub Association (BBPA). The UK brewing industry has this year exceeded the climate change targets put forward under the Government’s Climate Change Agreement. 

Fleurets found that most areas across the country have seen below-inflation pub rate increases in 2011

Set a target of 20%, the industry increased brewery energy efficiency by 25%, which  translates to a saving of £3m for UK brewers in Climate Change Levy payments.

The BBPA, which coordinates the measures for reducing CO2 emissions, says the results show a commitment to greener brewing. Pub landlords will hope they benefit in the form of lower wholesale prices.

It now takes 25% less energy to produce each pint of beer in the UK with 138,000 tonnes of carbon being saved this year. BBPA Chief Executive Brigid Simmonds appeals to brewers by commenting:

“Breweries interested in joining the new phase of the scheme should contact us so we can help them to benefit from the big financial savings the current members of the BBPA scheme are already enjoying.”

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