Fair Pint: OFT does not understand pubco model
The Office of Fair Trading has proved it does not understand the pubco business model — that's the view of anti-beer tie group Fair Pint.
Fair Pint: group is disappointed by OFT
The group, which wants the removal of the supply tie, said the decision was bad news for the pub sector.
"Both the Business and Enterprise Select Committee and Camra’s super-complaint contained clear evidence about how the business model of the largest pub owning companies and the operation of supply ties is leading to higher prices for consumers, restricting access for small brewers and leading to the failure of tied publicans businesses and the closure of pubs," said Fair Pint founding member Steve Corbett.
“I am shocked but not surprised about the OFT’s verdict. The OFT’s previous investigations into the industry have shown that they do not understand the pub sector and the damage which is being done to the sector by the ‘pubco’ business model, which is dependent on extracting income in the short term rather than the long-term viability of the sector.
“The future of the pub sector is an issue of wide public concern. We will now be looking for ministers to act by referring the issue to the Competition Commission and we will also be pushing the case for action to be taken in Europe.”
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