Not So Smooth Operator

In a quite astonishing spat, JD Wetherspoon has with immediate effect, ended its contract with Heineken to supply a number of drinks brands including Heineken and Foster's Lagers, Strongbow Cider and that old JDW favourite, John Smith's Smooth.

They have been trading partners for 35 years, so how has this come to pass?  Well since JDW ruffled feathers in Ireland by daring to open a pub in Dublin, things have been a bit tetchy over there. First of all Diageo, owners of Guinness, were booted out (or rather were never booted in) as JDW refused to pay what they saw as an inflated price for the black stuff. JDW turned to Murphy's Stout made by Heineken and things sailed along nicely, though under the surface, all was not well it seems.  Wetherspoon now intend to open a second pub in Ireland and looked to Heineken to supply it, but there has been a spectacular disagreement.  According to the BBC and other identical statements elsewhere, Heineken wanted to make the CEO of JDW, John Hutson, personally liable in case of a default on any debt, though why they should do so is a bit of a mystery given JDW's £80 million annual profit.  Wetherspoon has basically said and I paraphrase; "Well, stuff you then - take your scabby products out of our nice pubs!"

Now that would be bad enough if this sanction just applied to Ireland, but JDW has effectively said "Get Lost" to Heineken for all of their 900 plus pubs in the UK, blowing a £60 million account out of the water. Someone has misjudged the moment. Or maybe more than one someone.  In a somewhat pained manner Heineken UK said "

"Heineken UK has had a long standing and successful relationship with JDW in the UK market over a 35-year period, and it is unfortunate that commercial issues in Ireland between Heineken Ireland and JD Wetherspoon have led to the current situation. We are seeking a resolution as soon as possible."

Well I bet they are. To lose one account is unfortunate, but to lose 923 all at once is certainly careless, especially when you have been shafted by your Irish compadres. There is of course more to this than meets the eye with JDW undercutting the price of a pint of Heineken by up to €2 and the evil eye of Irish publicans being cast upon Heineken for that reason. Given that JDW has plans for up to 30 pubs in the Republic, this may well be somewhat of a test case, though I doubt that Heineken foresaw the eventual outcome and I very much doubt that this is the end of the matter. It is hard to see how Heineken can do other than to back down as JDW can undoubtedly get beer elsewhere.  There will be further repercussions too likely as not, but it is nearer home to which we must in compassion turn. Nobody in this sordid tale seems to give a monkeys chuff for those most affected, the Nine in the Morning Club.  What are they going to do without John Smith's Smooth? Ruddles just won't cut it.

Sadly it is always the least fortunate in our society that suffers when the big boys fall out.

On a more sombre note, this does show that when big business falls out, who knows where it all might end? Heineken is the world's biggest family owned brewer.