BREWERY MERGER SCHEME

Evening Star, Issue 18281, 22 May 1923, Page 4

BREWERY MERGER SCHEME

TRADE REFORMERS.

SIMILAR SCHEME FOR WINE AND

SPIRIT CONCERNS.

[Special to the ‘Star.’]

CHRISTCHURCH, May 21,

Under the scheme of amalgamation now being considered by the brewing interests in the dominion rho tied-house system, ns applied to hotels, will be donc,away with. Moreover, the wine and spirit concerns have now before them a somewhat similar scheme, which will loosen .the hold of individual concerns on licensed houses. The proposals are the most important the trade has ever made for its own reform. Representatives of the browing and wholesale wine and spirit concerns, who were seen by a ‘Sun’ reporter to-day, were not yet prepared to divulge the details of the schemes, but enough was gathered from them to arrive at an estimation of the intention. Quito obviously the trade is taking these measures in view of the report of the Licensing Commission, which will come before Parliament at the next session for consideration.

It is explained by a brewer that under the brewers’ amalgamation a publican would be free to sell any brands of ale or stout bo desires. He will bo entirely a free agent in the matter, The effect of this, the brewer added, will bo that brewing and wholesale spirit concerns will not have the same incentive to lend moneys to hotelkeepers taking over hotels. It will mean that men 'of greater substance than is usually the case will enter into the hotel business. Up to now the publican often has little to lose, as the financial burden is borne by the suppliers of liquor to bis hotel. This class of licensee will often take risks in trading that be .would hesitate to do if it meant the chance of losing large sums invested in bis business. The amalgamation scheme is a direct blow at the system of big goodwills for hotel leases, and undoubtedly it is the high goodwill paid that is one of the evils of the trade. Rightly or wrongly, the public, bolds the opinion that high goodwills cause much of • (he after-hours' trading that is complained of. [lnquiries made l.y n reporter disclosed that fairly full details of the whole scheme are known locally, but those concerned do not wish to discuss them publicly until something definite is done. A conference is at. present being held in Wellington of browing interests, and some concrete proposals will no doubt be published before long. It is quite evident that a great deal of interest is being aroused in the scheme, and those concerned arc confident that whatever is done will be in the direction of improving the “trade” for the benefit of tho public generally,]