Bitter truths
Sir: I refer to Sam Whitbread's letter (8 July). Even allowing for wishful thinking and an attempt to put a gloss on the facts, his letter states three inaccuracies which should be corrected.
Sam Whitbread disagrees that six nation- al brewers control 75 per cent of British pubs, putting the figure at 55 per cent. As he knows full well, 75 per cent is correct for all brewer-owned pubs as stated in the MMC Report. If he wishes to include all full on-licensed premises then of course the figure falls to 55 per cent. However, given LETTERS the difference between a pub and any other on-licensed premise such as a hotel, a disco or a Pizza Hut, then that figure is meaning- less.
I would also be interested to understand who does control Whitbread PLC if not Whitbread Investment Company which owns 25 per cent of the • votes. By Sam Whitbread's definition of 'control' this is presumably passed off as merely another incidental investment. As an 'independent trust company' Whitbread Investment Company could have bought shares in ICI or British Telecom; they just happened to alight upon a brewer called Whitbread. And to ensure that the two companies are operated on an arm's length basis, Sam Whitbread (the surname is again coin- cidental) is a director of each company and Whitbread PLC holds 50 per cent of the shares of Whitbread Investment Company. With this structure of cross-shareholdings and shared directors, Sam Whitbread's description of Whitbread Investment Com- pany as 'an independent trust company' can be seen as rather ambitious.
The most bizarre contention Sam Whit- bread makes is that Whitbread does not influence the regional brewers in which the Whitbread Investment Company holds substantial stakes. Really? Why do they all seem to sell Heineken — coincidentally brewed by Whitbread? Is it just because Heineken reaches the pubs other brewers cannot reach? If Lord Young ignores the pub estates of the regional brewers who sell Heineken when he fixes the 2,000 pub limit, he will have done Whitbread a great service. Whitbread will complain that it has lost control over 3,000 pubs through the front door, but will continue to supply an effective tied estate of 8,000 pubs through the cellar door.
Edward Whitley
58 Sutherland Place, London W2
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