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'You could be offered €100,000 - it's big money': Pubs reveal drinks firms' exclusive deals

Heineken has already been accused of using its clout to squeeze out rivals.

MAJOR DRINKS COMPANIES are routinely offering pubs incentives worth thousands of euro in an effort to get bars to stock their beers ahead of rivals and smaller, independent producers.

Multiple sources have told Fora that large companies make a range of sweeteners available to publicans such as free kegs of beer or even direct financial assistance.

As previously revealed by Fora, C&C, the company behind Bulmers cider, claims that Heineken abused its market power by striking deals with pubs to push Orchard Thieves.

Richmond Marketing, a firm which handles the Irish distribution of brands such as Miller, Peroni and Kopparberg, has also made similar claims.

Both companies complained to the Competition Authority. The regulator has decided not to launch a full investigation into the complaints, despite the fact that it said it was worried that Heineken’s alleged practises “may result in anti-competitive effects”.

C&C has pledged further, unspecified, action, while Richmond has said it will take a case to the European Competition Authority.

Something that is not denied is that major drinks firms do deals with pubs – although there remains a question mark over the extent to which these are anti-competitive.

bulmers credit J Wynia Flickr cropped J Wynia / Flickr J Wynia / Flickr / Flickr

Recently, Fora spoke to several pub owners to get their perspectives on these exclusive agreements.

Widespread

Multiple sources confirmed that exclusive deals are widespread in the Irish drinks industry. While some suggested that cash may have been used as an incentive in some cases, deals more often consist of offering free stock to bar owners.

For example, a big drinks company could approach a publican and offer kegs with thousands of euro worth of alcohol if they remove a rival from their premises.

Brian O’Callaghan, who is the proprietor of Scoby’s bar in Hospital, Co Limerick, said that such deals are “commonplace”.

“I was once offered 15 kegs of beer free of charge worth about €5,000 – €6,000 to install one beer and take out another,” he said.

“If I’ve been offered 15 kegs there’s nothing to say that the pub next door wouldn’t be offered 20. It’s not discussed in the industry and every deal tends to be tailor-made. I have no doubt that they would be tempted by the offer.”

O’Callaghan said he rejected the offer because “it is down to the customer to dictate what they drink”, but he added that he would have no issue with other pub owners accepting such deals.

“I would have sympathy (with different brewers), but would it adversely affect my decision-making? Would I blame publicans? No. Any publican that has come through the crisis of the last 15 years has worked very hard and it is down to their own decision.”

sober lane google maps Sober Lane Google Maps Google Maps

Ernest Cantillon runs the popular Sober Lane pub and Electric Bar in Cork city centre, as well as owning the independent spirits brand Kinsale Gin.

He said that he is “constantly” offered incentives to stock and promote drinks.

“A rep could come in and say he’ll give you a free keg if you put his beer in the fridge, (or another company) could come in and give you a cheque, it could be something like €100,000, and you would agree to exclusivity on their products for, say two years. It’s big money.”

Cantillon added that most big drinks companies would acknowledge that a bar could not entirely stock their products; for example, there is hardly a pub in the country that doesn’t have Guinness on tap.

“We would never have went for them because we felt that they would affect our customers offering, but for some guys it was a necessity. It was ramped up during the recession when publicans were on their knees.”

Shift

Others expressed similar views to Cantillon: that big companies have become more aggressive following the recession and in reaction to the explosion in craft breweries in Ireland, where the number of small, independent producers has shot up from 15 to over 70 in the last five years.

Some sources said that as craft beers and spirits have become more popular with consumers, larger drinks companies have looked for ways to shore up their dominance.

“With the advent of craft beers there has been a small shift away from standard, well-known beers to craft beers. (The market) is even more competitive now and I can see more offers being made,” O’Callaghan says.

“Everyone is looking for their slice of the pie.”

As a craft distiller Cantillon has perspective from both sides, however he points out that he expects to come up against it when competing against big companies to get his product into pubs.

beer stock Shutterstock / bogdanhoda Shutterstock / bogdanhoda / bogdanhoda

“The big guys aren’t doing them any favours, but why would they? I don’t see why Gordon’s Gin would do us a favour,” he said.

“Craft brewers can get locked out for a number of different reasons. If someone comes to us (in Sober Lane) and are distributing themselves, we say, ‘Come back when you have a distributor’.

“We would rather deal with a few distributors than 100 different ones. There’s a cost to putting things away, doing deliveries, etc.”

‘Flex the muscles’

Another publican who runs a pub in a large town, who spoke on condition of anonymity, said that his pub has done exclusive deals in the past with large drinks firms.

“There’s no question about it, a lot of them do try to flex their muscles and they’ll give you a sweet deal,” he said.

“(For example), a large drinks company has given us an interest-free loan. We rarely get cash, I haven’t got one of those offers in a long time.”

He said that some companies can be “very aggressive” and would push for one brand to be removed in favour of their own.

The publican added that one of the deals he has in place would prevent him from removing one particular line of beer in favour of another.

While he said he has some pity for smaller brewers who are looking to get their products in pubs, he contended that such deals are a normal part of the drinks industry.

“It’s part and parcel of the trade. I don’t think it will ever stop.”

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Written by Paul O’Donoghue and posted on Fora.ie

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    Mute Atticus the Accuser
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    Apr 19th 2015, 3:59 PM

    Bit ridiculous it’s not a reflection on a person’s character what their ancestors did. I’m sure if you go back far enough in most people’s family tree, you’d get all kinds of “characters”.

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    Mute YFG Account
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    Apr 19th 2015, 4:01 PM

    Sometimes as recently as the 70s

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    Mute Jimmy Jim-Jim
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    Apr 19th 2015, 4:20 PM

    There is a trend in America of calling for reparations from descendants of slave owners. Given his wealth he may be a target for claims, and given his political activism I can’t see how he could refuse without loosing face.

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    Mute J. Dunn
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    Apr 19th 2015, 4:24 PM

    When someone tries to measure you against the actions of your long gone ancestors just tell them, ‘Well, if not for the murderers and rapists in your family tree you probably wouldn’t be here today.’.

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    Mute Jack Dunne
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    Apr 19th 2015, 4:28 PM

    Weren’t all white people potential slave owners back then

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    Mute John Ryan
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    Apr 19th 2015, 4:31 PM

    What ever you do don’t mention black slave owners or the debt owed to the hundreds of thousands of white soilders who died to bring an end to slavery.

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    Mute Deco James Connolly
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    Apr 19th 2015, 4:33 PM

    Blacks owned slaves first .

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    Mute Jimmy Jim-Jim
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    Apr 19th 2015, 4:53 PM

    The Aran slave trade makes for some interesting reading. 10-18 million slaves taken, about 1 million of them from Europe. Male slaves were castrated, which is why there aren’t large groups of descendants of these slaves around the middle and near East.

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    Mute Jimmy Jim-Jim
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    Apr 19th 2015, 6:42 PM

    *Arab

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    Mute Agrippa
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    Apr 20th 2015, 12:03 AM

    Yeah didn’t they grab over 100 people from baltimore and enslave them in Algeria

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    Mute John Ryan
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    Apr 19th 2015, 4:08 PM

    When will these people ever learn that the more you try to hide this stuff the bigger it comes back to bite you in the ass.There is nothing to be ashamed about here. Ben Affleck didn’t own slaves.Its part of history and should be used to learn lessons from that god-awful period.

    I mean if he wants something to be ashamed of might I suggest Daredevil.

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    Mute Alan Ball
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    Apr 19th 2015, 4:11 PM

    Sooo true!!!!!!!!!!!!!!!!!1

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    Mute John Ryan
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    Apr 19th 2015, 4:34 PM

    I’ll tell ya if he fecks up Batman I’ll be wanting words with him.

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    Mute David G
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    Apr 19th 2015, 4:44 PM

    It’s called the Barbara Streisand effect

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    Mute John Ryan
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    Apr 19th 2015, 4:53 PM

    What ? Fecking up Batman ? ;-)

    Ill grab me jacket.

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    Mute Art Vandelay
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    Apr 19th 2015, 3:59 PM

    I’m sure in a few hundred years time his family will be hiding the fact that they ever knew or were related to an Affleck that was an “actor”..Gigli? Never heard of it…

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    Mute An Observer
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    Apr 19th 2015, 4:31 PM

    ‘Batman v Superman’ is yet to be released…. Gigli might be a distant memory after that…

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    Mute Tap Solny
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    Apr 19th 2015, 4:09 PM

    People should be held accountable for their actions today not for the deeds of their ancestors.

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    Apr 19th 2015, 4:12 PM

    Tap sometimes I think you’re the only person here who talks any sense.

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    Mute Joseph Siddall
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    Apr 19th 2015, 4:29 PM

    Tap, does that apply to countries, also? If so, some commentators on Journal.ie should take note.

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    Mute James Lyons
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    Apr 19th 2015, 4:06 PM

    “It’s history” is a forgiving phrase for a reason.

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    Apr 19th 2015, 3:58 PM

    I think it’s important that we never try to sweep history under the rug. Some actions are always wrong regardless of prevailing beliefs at the time or historical context. Those who murder or treat others poorly should always be held accountable as the criminals they are.

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    Mute Top Cat
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    Apr 19th 2015, 4:05 PM

    It’s a delicious irony that uber leftwing commie like Afleck is descendant from slave owners.

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    Apr 19th 2015, 4:09 PM

    Top Cat I’d say you’re great craic at parties.

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    Mute Neal Ireland Hello
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    Apr 19th 2015, 4:38 PM

    There’s got to be a limit to the number of times you can use the “I’d say you’re great at parties” line.

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    Apr 19th 2015, 4:47 PM

    Off topic but where did your username come from?

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    Mute David Jordan
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    Apr 19th 2015, 8:01 PM

    Don’t be coy YFG, we all know you’re talking about FG and AGS’s role in the planning, carrying out and cover up of the Dublin/Monaghan Bombings.

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    Mute Bill Rooney
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    Apr 19th 2015, 4:42 PM

    Slavery was abolished in 1833 by an Act of Parliament – in Britain, of which we were part.

    Many weathy people in Ireland owned slaves – as part of their ‘balenced’ investment portfolio. Just like now, investments will include (say) – oil, property, gilts and drugs.

    Gladstone’s family (4 time English Prime Minister – with a major involvement in Irish affairs!) – had over 2,500 slaves, working on 9 plantations in the West Indies.

    In 1833, the Gladstones received £83 million (modern equivalent) in compensation. Staggeringly – getting paid for the ‘loss’ of slaves.

    The families of David Cameron (and his wife’s) had about 400 slaves on their books; they got £4 million in compensation.

    But so far, nobody has researched (as far as I know) the involvement of Irish investors. But – it is believed that many of our ancestors had a considerable slice of the pie, mainly in the Pale…..

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    Mute Deco James Connolly
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    Apr 19th 2015, 4:32 PM

    Democrats are and were the real racists , poor old Ben ,his back will be raw with self flagellation .

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    Mute Brendan Julian
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    Apr 19th 2015, 8:18 PM

    Seems he only made things worse by trying to hide the fact. In your face Ben

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    Mute Amity Bodega
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    Apr 19th 2015, 9:47 PM

    His brother Casey Affleck was arrested for rape but that was covered up too. Also noticed there is very little about the actors on Wikipedia which is strange for such well known actors

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    Mute David G
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    Apr 20th 2015, 9:53 AM

    There is a huge amount on Wikipedia about Ben but less about Casey so that comment is inaccurate.

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    Mute Bernard O'Brien
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    Apr 19th 2015, 10:05 PM

    A third of the people in Ireland are supposedly decended from Nial of the nine hostages which explains a lot !

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