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News Article Comments : OFT will take no further action on pubcos
The Office of Fair Trading (OFT) will take no further action following the Campaign for Real Ale's (Camra) super-complaint over pubcos and the beer tie.
The OFT said it had "not found evidence that supply ties are resulting in competition problems that are having an adverse impact on consumers".
In its eagerly awaited response, the OFT said there was "generally effective competition" between pubs and it did not believe that the beer tie contributed to higher prices or prevented pubs offering wider choice to customers.
In its super-complaint, Camra hit out at tied beer prices for tenants and the "flawed" system of setting rents.
It also urged pubcos to offer licensees greater access to local beers and for a law preventing pubs being sold with restrictive covenants. However, Camra urged the beer tie itself to remain.
But the OFT said: "The OFT has received submissions from pub lessees outlining their concerns about the rent assessment process and their negotiations with pub landlord
22 Posts(s) found for this thread: Now displaying page 2 of 3
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Phil Liddell 22/10/2009 10:04:03  |
OFT will take no further action on pubcos "'Any strategy by a pub-owning company which compromises the competitive position of its tied pubs would not be sustainable, as this would result in a loss of sales. Pub-owning companies are not therefore protected from competition by virtue of the supply ties agreed with their lessees." Why do you think so many tied pubs are going out of business? They are NOT sustainable, however it's the individual lessee / tenant that takes the loss, not the Pubcos. Moreover, there have been far too many 'individuals that have been exploited, time the instigators of this scam took what they deserve. Time the lessees / tenants were in charge of their own destiny. Time now for direct action. This post replies to this thread |
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Alastair Elliott 22/10/2009 10:57:39 |
OFT will take no further action on pubcos 'bobfm writes, if anyone thought the result would be different is incredibly naive.' This post replies to this thread |
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Phil Jones 22/10/2009 11:47:42 |
OFT will take no further action on pubcos "Whilst we appreciate these concerns, we are unfortunately unable to comment on individual cases. Our analysis has focused more generally on whether the operation of tied lease agreements gives rise to a lack of effective competition, to the detriment of consumers." I think we have to put this report into context. When the Super complaint was first announced there were concerns that the OFT were a consumer watchdog and could do nothing to intervene between business/business contracts and the redress the balance in the relationship between Pubco and tenant. Well those concerns have been proven to be well founded. However this report should do little to affect the work of the Fair Pint and the other groups. Most importantly the formation of the IPC with input from ALMR, Fair Pint, CAMRA, SIBA GMV, JFL there is a massive voice for tenants and small brewers. The next step is to continue to pressure Lord Mandelson and Kevin Brennan MP. Every tenant who has a concern must write to their MP and get them to write asking Mr Brennan or Lord Mandelson to act. Get them to read the BEC Report and just have a look at this forum. edited by: Phil Jones at: 22/10/2009 11:48:00 This post replies to this thread |
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| JohnD 22/10/2009 12:01:34 |
RE: OFT will take no further action on pubcos The OFT decision puts the spot light on those very smart guys (NOT) running the CAMRA! LOL!!!!!! What on earth was CAMRA expecting afterall? ...erm something to cheer up the ver sad looking punch and enterprise popco charlatans? Even a schoolboy would not have got the OFT involved in the first place. The OFT looks at CONSUMER issues ONLY! This post replies to this thread |
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| The Crocodile 22/10/2009 12:11:55 |
RE: OFT will take no further action on pubcos I still don't understand how it does not affect the consumer. The Pub Co fix the price to the lease holder, the lease holder sells based on his supply price and bingo, everything is 30-40% higher than it would be if those pubs were able to buy from a wholesaler, even someone like Makro. Higher price to the shop/pub = higher price to the consumer.. Or am I missing something. This post replies to JohnD > RE: OFT will take no further action on pubcos |
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| Gilbert Bank 22/10/2009 11:40:30 |
OFT will take no further action on pubcos Matthew, your figures for cask ales do not reflect my own and indeed recent news coverage suggests that the cask is on the up and up. 50% of my trade revolves around cask beer and my margins are far greater than the other mainstream products on the bar. CAMRA are a consumer group but I would suggest that there is more pressure on their collective jumpers than anywhere else. SIBA is of little concern to tenants, being an alliance to benefit producers and pubco's and the tenant pays. Another unneccessary layer of admin that sucks money out of the trade. The ALMR are are no friend of the tenant. They are the friend of multiple retailers. The FLVA and BII do not get a mention from you and deservedly so. The GMB? Are you serious? If looking after their members involves discovery as to why their members are losing jobs and its because we as self-employed tenants are going out of business and they can see a "probable cause" we are to ignore them? Insane. The High St. Cutthroat competition eh? I think you will find its managed chains who indulge in this. Leased tenants cannot afford to. Didn't you know? This post replies to Matthew Evans > OFT will take no further action on pubcos |
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| J Mark Dodds 22/10/2009 13:03:42 |
RE: OFT will take no further action on pubcos This is a huge slap in the face for CAMRA although, regrettably, hardly an unexpected blow as OFT is widely regarded as a broken wrench in a musty out of touch tool cupboard of consumer protection bodies available in the UK. CAMRA do not make a supercomplaint lightly, their interests revolve around THE CONSUMER not the retailer and, quite simply, a blinkered and utterly ill informed OFT got it wrong yet again. The heads of OFT should be hauled up for a mauling by Mandelson's office. This whitewash is a scandal. Get ready to march! edited by: J Mark Dodds at: 22/10/2009 13:04:33 This post replies to JohnD > RE: OFT will take no further action on pubcos |
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| guy Arnold 22/10/2009 18:19:07 |
RE: OFT will take no further action on pubcos This is the right decision, and so is that of the PubCos to 'not be complacent'. The support offered is still well below that which is needed to compete effectively in this VERY demanding marketplace, but changing the tie would have had little beneficial effect. All the time and energy taken dealing with these issues, is time and energy taken away from the true issues: that of taking advantage of the increasing customer demand for eating out, and drinking out of hot drinks and soft drinks, in a very competitive marketplace. Yes, let's work together ... and let's see some real evidence of positive action! The key is to enable great retailers to flourish in partnership, and to be more demanding with poor retailers. This post replies to this thread |
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| J Mark Dodds 22/10/2009 19:12:45 |
RE: OFT will take no further action on pubcos Guy come on. While agreeing with your sentiments the reality is that, far from being MORE proactive, pubcos are becoming more and more entrenched and doing less and less, from an already shamefully low base level, to support tenants as trade conditions worsen. Watch over the next three months as thousands more licensees - that's hard working people and their staff - go to the wall as the pubco reality begins to finally bite deep. This post replies to guy Arnold > RE: OFT will take no further action on pubcos |
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| JohnD 22/10/2009 19:24:16 |
RE: OFT will take no further action on pubcos Crocodile, You're ofcourse right that higher pubco beer prices can only mean higher pints prices for the pub goers, but in the eyes of the OFT, that's only true in that particular pub only. The OFT takes an aerial view of towns and cities, where they can see lots of non tied pubs available, such as Wetherspoons! The pubcos own less than 50% of the UK pubs, so there's plenty pf competition, FOR THE PUB GOERS! That's why it was stupid for CAMRA to go anywhere near them!!! This post replies to The Crocodile > RE: OFT will take no further action on pubcos |
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