Website aimed at publicans

by Ian Guider 14th June 2000

PUBLICANS and hoteliers may benefit from a new e procurement website launched yesterday, but it is unlikely that consumers will see any reductions in the price of a drink.

PubXchange.com is the latest venture aimed at reducing the costs of publicans by ordering their supplies over the Internet and in bulk. The creators of the website claim that ordering over the Internet will bring down both costs and the time involved in procuring supplies from breweries and distillers.

However, the launch of the website is likely to be seen as a further attempt to develop a publicans cartel in Ireland where the benefits of cheaper costs are not passed on to consumers.

PubXchange chief executive Richard Finnegan confirmed that he had received an offer to purchase the website from well known Dublin publican Hugh O’Regan. It is rumoured that Mr O’Regan, of the Thomas Reed group, offered £11 million to buy PubXchange.com from Richard Finnegan. “We were approached and an offer was made. When we went into negotiations we found that it was not appropriate to sell,” Mr Finnegan said.

The aim of PubXchange is to allow publicans and those in the hospitality industry to order supplies in bulk using the website.

By cutting time and resources it is hoped that PubXchange will make bars and hotels more profitable and reduce time consuming tasks.

The service is similar to that of Bartrader, which intends to supply pubs with everything they need from alcohol to glasses. By getting the majority of Ireland’s publicans to join Bartrader, it should force down the prices of wholesalers.

However, while wholesale prices may come down, consumers may be the ultimate beneficiary. Bartrader has let it be known that they intend to pass on some of the savings to the public, but Dublin publicans are being accused of price fixing, with people in the capital paying up to 10% more than those in rural areas.

© Irish Examiner, 2000

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