Scottish Pubs Code Adjudicator: guidance - guest beer arrangements
Guidance for tenants about guest beer arrangements under the Scottish Tied Pubs Act 2021.
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The Scottish Tied Pubs Act outlines specific provisions regarding guest beer arrangements to support tenant flexibility and choice. These key points ensure that tenants can diversify their offerings without undue restrictions, thereby fostering a fair and competitive market. The following guidance aims to help tenants navigate the guest beer arrangements under the Scottish Tied Pubs Act 2021.
Understanding the Guest Beer Agreement
As a tied pub tenant, you have the right to request a guest beer agreement. This agreement allows you to sell at least one beer of your choice at a price you set. The guest beer can be sold in whichever format you decide, whether cask or keg, bottles or cans. This flexibility may help you diversify your offerings and attract more customers.
Beer production level
The guest beer must come from a brand that produces 5,000 hectolitres or less annually. If it’s a new beer, this is also allowed, as long as the estimated production will be less than 5,000 hectolitres that year. This ensures that you are promoting smaller, possibly local breweries, and offering unique or new selections that might not be available in larger chains. If the landlord thinks that the brand is exceeding these production levels, they can write to you and ask you to change the guest beer brand. If this happens, the landlord should give you fair and reasonable notice.
Negotiating terms with pub-owning businesses
Contact your pub-owning business (the landlord) to discuss the terms of a guest beer agreement. For your request to be valid, it needs to be made in writing but no specific wording or formal notice is required.
After you submit your request, the landlord must offer you a guest beer agreement, unless one is already in place. This offer should be made as soon as possible and no later than four weeks after your request. You and the landlord should minimise any costs or administrative burden when entering this agreement. Each party is responsible for covering their own legal costs, if applicable.
The agreement between you and the landlord cannot penalise you or require you to stop selling any product. It may only amend the lease to include the guest beer agreement and any service equipment charge that the landlord might impose.
Disputes
If you face challenges in reaching a guest beer agreement, negotiating its terms, or addressing related issues, you should first try to resolve them informally with the landlord. If this is unsuccessful, you may submit a formal complaint to the Adjudicator, who will assess the case based on its specific facts to determine if the Code has been breached.
You can find more information on the Scottish Pubs Code Adjudicator website or you can contact the office of the Scottish Pubs Code Adjudicator on 0300 244 1225 or email pubscodeadjudicator@gov.scot
