Trade reacts to new beer tie probe

Enterprise Inns

"We note that Camra has, as widely anticipated, issued a super-complaint to the Office of Fair Trading. We welcome the opportunity to present our evidence to an independent and non-political body. We are confident that any investigation will conclude that the principle of the tie continues to confer significant advantages for tied tenants."

Fair Pint​

Spokesman Steve Corbett said: "Camra is right to point out that reform is urgently needed to rebalance the relationship between tenants and their landlord. Fair Pint believe that the most effective way of doing this would be through reforms which would sweep away anachronistic practices like the tie and ensure that the system of setting rents is fair and transparent.

"The only way in which the pub sector will secure its long-term future is if pubs have the freedom to adapt to changing consumer demands. Camra correctly point out that ties mean that most small brewers are unable to sell their products to tied pubs, we therefore find it confusing why the organisation believes that the removal of the tie would damage the real ale market in the UK."

Society of Independent Brewers (Siba)​

President Keith Bott said: "We welcome the referral of the beer tie to the Office of Fair Trading, and hope that this will be the start of a resolution to the issue. This long-running debate and uncertainty around the tie is not helpful to our members as they make long-term plans for their business.
"Siba would like to see greater access for its members' beers into pubs, especially as consumer demand for local, quality beers, is growing and presenting exciting sales opportunities for brewer and retailer.

"There are, however, some benefits to the tied model, which is why we don't support calls for it to be removed completely."

Association of Licensed Multiple Retailers​

Kate Nicholls, head of communications, said: "We agree with Camra that the status quo is not an option, but what the trade needs now is reform not revolution.

"Since the publication of the Bec Report, we have seen very real evidence that the national pubcos are willing to come to the table to discuss the very important issues of rent calculation models, dispute resolution and beer discounts.

"Mediation represents a unique opportunity to grapple - once and for all - with the issues which have dogged our industry since the Beer Orders. "The Camra super complaint is a key part of this whole process. It will not only help to focus minds ahead of mediation talks, but can help to shape its outcome.

"If mediation is successful, then the resulting agreement could be translated into legally binding undertakings to the OFT, giving them a tailor-made response to Camra's complaint."

Federation of Small Businesses​

Clive Davenport, FSB trade and industry chairman, said: "The Federation of Small Businesses (FSB) welcomes CAMRA's super-complaint into the issue of tying pub companies to pub tenants and how it affects consumers.

"But it isn't just consumers that the tie is damaging. Pub tenants are forced to buy beer at around double the rate that they could buy it on the free market. This, coupled with the constant threat of high rents by the pub companies, is destroying our pubs and is crippling the heart of our communities.

"The FSB has been lobbying the Government on this issue for years and research shows that 99% of pub owners said that little has changed since the [Trade and Industry Select Committee] investigation into pub companies in 2004.

"It is time that pub tenants were given a fair deal. Pubcos share the risks of running a pub with the pub tenant but not the profits - around 67% of lessees with a turnover of half a million said they earn £15,000 - less than the average wage.

"With over 50 pubs closing a week, the FSB is calling on the OFT to investigate the industry so that pub tenants can be given the chance to thrive and save our dying pub market."