CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

JD Wetherspoon pulls Heineken products from UK pubs

Article By: ,  Financial Analyst
December 10, 2014 11:26 AM

JD Wetherspoon has pulled all Heineken products from its 926 UK pubs following a pricing dispute with the Dutch brewer.

Heineken, which owns brands such as Foster's lager, John Smith's bitter and Strongbow cider as well as Murphy's stout, receives £60 million from the pub chain for UK sales every year. However, Wetherspoon has fallen out with the brewer about the supply of beer to one pub in the Republic of Ireland.

The row erupted over the opening of a new Wetherspoon outlet in Dun Laoghaire. Wetherspoon stated that Heineken had requested that the pub chain's chief executive John Hutson gave personal guarantees that all of its bills would be paid if Wetherspoon did not pay them.

Wetherspoon added that Heineken had refused to supply its lager, which is the biggest-selling draught beer in Ireland, along with Murphy's from its second pub in the country. This led to the company pulling Heineken and Murphy's from all of its UK pubs. It had previously been selling the two beverages at prices 40 per cent below the competition at its first Irish pub in Blackrock, Dublin.

Tim Martin, Wetherspoon chairman, spoke of the long-standing relationship with Heineken, adding: "We have been trading with Heineken for 35 years and they have never requested personal guarantees before.

"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."

Heineken UK declined to comment on the situation in detail but explained that it was "seeking a resolution as soon as possible".

Wetherspoon is one of the fastest-growing pub chains in the UK and has now set its sights on expanding across the Irish Sea to Ireland. In March, the company announced a 3.2 per cent boost in pre-tax profits to £36 million continuing its strong performance throughout the year.

Find up to date information on the FTSE 100 and spread betting strategies at City Index.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024