Pub firm Wetherspoon ends Heineken drinks deal after row

(Adds reason for dispute)

By Neil Maidment

LONDON, Dec (Shanghai: 600875.SS - news) 9 (Reuters) - British pub group Wetherspoon said it would no longer sell Heineken (Other OTC: HEINY - news) drinks at any of its 926 pubs after a disagreement with the Dutch brewer over pricing in Ireland (Other OTC: IRLD - news) .

Wetherspoon, whose cheap drink and food offers have proved popular in the UK, has been selling pints of Heineken lager and Murphy's stout at prices around 40 percent below the competition at its first Irish pub in Blackrock (NYSE: BLK - news) , Dublin.

The pub chain, which last year outlined plans for around 30 pubs in the Republic of Ireland, said on Tuesday Heineken had refused to supply Heineken lager, Ireland's biggest selling draught beer, and Murphy's to its second pub in Dun Laoghaire, due to open this month.

The spat is another blow for Wetherspoon's Irish ambitions. The firm does not serve Guinness there either after a disagreement on price with drinks group Diageo (LSE: DGE.L - news) .

Wetherspoon said Heineken had also wanted personal guarantees from Chief Executive John Hutson in order to supply the Dun Laoghaire pub any of its others drinks, such as Strongbow cider and Foster's lager. It did not say what the guarantees were.

Heineken, whose business with Wetherspoon is worth around 60 million pounds ($93.92 million) a year, was not available for immediate comment.

Wetherspoon founder and chairman Tim Martin said the brewer's decision was "unacceptable and hard to understand".

"We have been trading with Heineken for 35 years and they have never requested personal guarantees before. It's obstructive to do so now, especially when we made record profits of around 80 million pounds last year," he added.

Shares (Frankfurt: DI6.F - news) in Wetherspoon were broadly flat at 802 pence at 1005 GMT. Heineken shares were down 1 percent to 61.80 euros. ($1 = 0.6389 pounds) (Editing by Louise Heavens)