Enterprise Inns welcomes beer tie ruling

Pubco giant Enterprise Inns has welcomed the Office of Fair Trading's (OFT) decision to leave the beer tie alone but has vowed to "evolve" its approach to the business model.

After months of investigations the OFT said yesterday that it did not believe the beer tie damaged consumers.

Its investigation followed a super complaint from CAMRA stating the tie is uncompetitive and has damaged pubs.

In a statement Enterprise Inns, which runs 7,000 tenanted and leased pubs, said it was "time to move on".

It said: "The tie has now been reviewed no fewer than 26 times since 1966, at considerable expense to all concerned. On every occasion the tie has been found to be fit for purpose. It is now time to move on and focus all our attention in supporting our hardworking licensees.

"The vast majority of licensees understand and acknowledge the role of the tie, particularly in such a challenging economic environment. We are not complacent however and have continued to evolve our approach to the tie."

The company also pointed to flexible options it has introduce for licensees.

Meanwhile the Independent Family Brewers of Britain (IFBB) also welcomed the OFT's ruling.

Chairman Paul Wells said: "While this complaint has focused on operators with over 500 pubs, which does not affect IFBB members, the ongoing negative publicity has been detrimental to the industry as a whole.

"The IFBB and its members are now looking forward to working with CAMRA to ensure the ongoing success of cask ale."

However Greg Mulholland, chairman of the All-Party Parliamentary Save the Pub Group, labelled the OFT "toothless".

He said: "In dismissing CAMR's super complaint the OFT has proved once again that it is not capable of launching an appropriately in-depth investigation into a matter as complex as the beer tie.

Separately, the government announced yesterday that the OFT is to merge with the Competition Commission into a single market and competition authority.