In response to the criticisms levelled at Scottish & Newcastle and John Smith's in your story "First John Smith's stopped their free beer..." (February 8).

Only a small proportion of our 17,000 pensioners were willing, or able, to attend a Christmas party. They all now get an extra £10 worth of free drinks vouchers and some have contacted us to express their delight.

The small group of pensioners, who regularly enjoyed the extra benefit of free beer, have been invited to use the excellent Magnet Sports & Social club at the brewery site.

Here, pensioners can meet in a friendly atmosphere and enjoy a cheap pint - but despite confirming this offer in writing, we have not received any response.

You point out that S&N recorded profits of £471 million. This money belongs to shareholders, many of whom are pensioners who rely on dividends for additional income. In 2004, these profits provided a £200 million special payment into the S&N pension fund - a measure that trumps free beer a thousand fold.

What else has S&N done for Tadcaster?

We have just invested around £40 million in the brewery. This strengthens the job security of all the 324 employees and the many jobs indirectly linked to the local area. These are not actions you would associate with "skinflints" and "bean-counters".

We understand some pensioners are disappointed that we have decided to discontinue free beer and parties.

However, many thousands of S&N pensioners nationwide are now £10 better off at Christmas. And they can enjoy their retirement in the knowledge that S&N places a high priority on its pension fund so it can continue to provide excellent benefits in the future.

Nigel Pollard,

Head of UK Public Relations,

Scottish & Newcastle,

Broadway Park, Edinburgh.

Updated: 09:45 Monday, February 14, 2005