Rivals applaud Yates's minimum price policy

Pub industry bosses have given a cautious thumbs-up to Yates Group's decision last week to introduce a minimum price policy in its bars, but the industry is undecided as to whether the move will help combat the UK's binge-drinking culture.

Urbium managing director Robert Cohen said the move represented a sensible long-term strategy. "I would, however, urge the authorities to also look at the price of alcohol in supermarkets, because there are no restrictions on the amount people can buy there."

Pub operator JD Wetherspoon, which has repeatedly spoken out against minimum pricing policies, said: "It would be churlish for us to knock this move, which can only be good for the industry. But we don't agree that cheap pricing means problems and therefore won't be adopting a minimum price scheme."

Nick Bish, chief executive of the Association of Licensed Multiple Retailers, was equally cautious. "I applaud any company that examines their business and looks at what they do and how they can be more socially responsible. I don't prescribe to the logic behind setting minimum prices, but if it stops the tiny percentage of operators that run daft drinks promotions from doing so, it has to be commended."

Luminar, which owns the Chicago Rock Caf‚, said: "We support minimum pricing initiatives but only at levels that are sustainable."

Yates Group, which also runs the Ha!Ha! Bar & Canteen chain, is the first British pub company to introduce a minimum price arrangement and will now sell a pint of beer for no less than £1.25, with spirits and bottles on sale for no less than £1 apiece.

As part of its nine-point charter, BarSafe, the company is reducing the number of shots in its cocktail jugs and offering customers free water and soft drinks.

Mark Jones, chief executive at Yates, said: "So-called binge-drinking and its consequences are the single biggest issue facing the bar sector right now. Yates Group is determined to tackle it head-on."

In response to Yates's move, pub company Mitchells & Butlers has relaunched its alcohol and social responsibility programme to persuade customers to drink responsibly.

• Scottish & Newcastle, which brews Kronenbourg and Newcastle Brown Ale, is introducing a "smoking-style" health warning to its beer bottles next month in a move to encourage customers to drink responsibly.

Source: Caterer & Hotelkeeper magazine, 21 October 2004