Family brewers: beer tie fundamental to success

More pubs will close if the beer tie disappears — that's the message from family brewers to the Office of Fair Trading (OFT) for its new probe into the tie.

The regional diversity of cask beers offered would also be "damaged beyond repair", says the Independent Family Brewers of Britain (IFBB).

The IFBB, which represents 27 brewers, almost all with tied pubs, has responded to its submission for the OFT's new study of the tie. The probe was triggered by the "super complaint" lodged by the Campaign for Real Ale (Camra).

In a statement, the IFBB said: "The traditional brewery tenancy is fundamental to the success of the family brewers, who rely on the beer tie to operate as both brewers and pub retailers.

"Outlawing the tie would shake the industry's foundations, and inevitably lead to the failure of even more pubs than those already being lost, and to the closure of even more traditional breweries, with the loss of their local and regional beers, as well as the impact on the local economy and employment market."

IFBB said the tie allows a low-cost entry for tenants and "when the trade varies up or down the impact is felt in the pub and the brewery alike.

"The tie allows the brewer to plan capital expenditure over future years in the brewing plant and the pubs, secure in the knowledge that there is a market guaranteed for the beers brewed, the majority of which are Britain's best cask conditioned beers."

Paul Wells, Chief Executive of Wells & Young's and Chairman of the IFBB said: "Camra has always supported the traditional brewery tie operated by IFBB members, and as it has 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."