Brewers tell OFT removing the tie would "shake the industry's foundations

Family brewers have told the Office of Fair Trading (OFT) an end to the beer tie would lead to further pub closures, the loss of more traditional breweries and leave the market open for global brewers.

In its 19-page response to CAMRA's super-complaint, the Independent Family Brewers of Britain (IFBB), which represents 27 breweries, has argued outlawing the tie would "shake the industry's foundations", as the traditional brewery tenancy is fundamental to the success of family firms.

Paul Wells, chief executive of Wells & Young's and the IFBB's chairman said: "CAMRA has always supported the traditional brewery tie operated by IFBB members, and as they have observed, removal of the tie would confer greatly increased market power on the global brewers.

"As a result the regional diversity in cask beers the consumer is currently able to enjoy would be damaged beyond repair."

The IFBB also told the OFT the tie allows a "very low entry cost for tenants" and lets the brewer plan capital expenditure over future years in the brewing plant and the pubs, "secure in the knowledge there is a market guaranteed for the beers brewed".

The IFBB, whose members represent more than 4,200 pubs, was brought together in 1993 with the specific aim of defending the beer tie.

CAMRA's super-complaint, lodged last month, argued that "exploitation" of the tie and "unfair methods of setting rents" were harming consumers and society.

However CAMRA is in favour of reform of the tie and not for it to be abolished.

Options available to the OFT range from referring the beer tie to the Competition Commission or no action at all.

It is understood that the British Beer & Pub Association's response to the super-complaint totals around 40 pages.