Supermarkets Beating Pubs and Bars in the UK Alcohol War

Small and independent alcohol retailers should be concerned by a new study which found the number of failing bar and pub companies has risen by over 30 per cent.

According to accountancy firm Wilkins Kennedy, 130 bar and pub companies went bust during the third quarter of 2010, compared with 99 during the same period the previous year.

These include Gordon Ramsay’s pub, The Devonshire, which – despite £5million in funding – shut down after just three years of trading, and City of London retailer Balls Brothers who were forced to close all 19 of their pubs and bars in November.

The sector has taken a clobbering over the past 12 months with heavier taxation and new legislation that makes it easier for local residents to challenge opening hours.

The government’s Police Reform and Social Responsibility Bill, which came into force last month, is a further hindrance as it punishes bars and pubs with a £4,500 fine for serving alcohol after midnight without a proper licence.

But even more worrying, is the lack of support shown by lenders as it leaves the industry vulnerable to competition from supermarkets.

Over the past decade, Sainsbury’s have traditionally been serious paymasters to government and subsequently helped supermarkets monopolise the price of alcohol.

Supermarkets have cosied up to government ensuring that successive administrations did not implement legislation that would harm their interests and curtail the likes of Tesco, Asda and Morrisons from selling alcohol, purely as a loss leader to pull in customers; knowing they will purchase other goods.

The sector has been weakened by the smoking ban and easy access to cut-price imported booze, but supermarkets have caused serious harm to the bar industry and convenience stores who say they can only compete by opening 24 hours a day.

Labour has Sainsbury’s and Tesco as benefactors, while former Asda chairman and MP Archie Norman has supported the Tories for over 20 years.

In contrast, smaller alcohol retailers aren’t united and don’t lobby government.

And even if they did lobby, because they’re not dropping millions into government coffers to help fight election campaigns, their petitions would fall on deaf ears.

Debtor Alert: Theodore Global Ltd

20/06/2025

Theodore Global Ltd: A Company That Fails to Pay Its Staff and Trades While Insolvent If you’re thinking about working with, or for Theodore Global…

Read More

Irene MacKenzie- The Gatekeeper of Silence

20/06/2025

Irene MacKenzie and the Web Around William Jackson In the shadows of the alternative investment world, where buzzwords are abundant but redemptions are not, one…

Read More
Northumberland Living

Billy Jackson Update Part 2: Companies of Interest

20/06/2025

In our last blog on Billy Jackson, we exposed the web of enablers supporting his business operations. In this follow-up, we turn the spotlight on…

Read More
the 79th group

The Grim Truth for Loan Note Holders -79th Luxury Living Six Ltd (LL6)

18/06/2025

No assets or safeguards. No clear path to recovery. If you’re one of the many investors who entrusted your money to The 79th Group’s loan…

Read More