Fair Pint: tie forcing up beer prices

The beer tie is being used to extract extra income from struggling tenants and is forcing up the price of beer to consumers, Fair Pint has told the Office of Fair Trading (OFT).

The anti-pubco group said the lack of transparency in the rent setting process has led to an "exploitative" relationship between pubcos and tenants, in its 21-page response to the Campaign for Real Ale's super-complaint.

The submission argues that the pubco model has led to higher prices for consumers, a lack of investment in the sector and a lack of choice due to pub closures.

"It is clear that the tie is simply being used by pub owning companies to extract income from struggling their tenants," said Fair Pint founding member and Enterprise lessee Steve Corbett.

"The pubco model which has also being adopted by most of the brewers with tied estates is an exploitative relationship between and as well as making it difficult for tied tenants to make a living from their pubs, has led to rising prices, less choice and worsening service for consumers.

"It is clear the pub market is not functioning in an efficient and competitive way and that this lack of competition and innovation is putting the future of the whole sector at risk."