Pub chain chief slams beer tie ruling as 'ridiculous'
A high-profile multiple operator has slammed the Office of Fair Trading's (OFT) beer tie decision as "absolutely ridiculous", arguing there is clear evidence the beer tie is strangling competition.
Tony Brookes, managing director of the eight-strong North-East based Head of Steam, has written to the OFT claiming the body is "too heavily influenced by the big guns in the licensed trade and don't care about workers on the coal face".
He has also copied an email with the letter attached to host of MPs - including Home Secretary Theresa May and Business Secretary Vince Cable.
The OFT last week concluded the tie is good for competition and does not harm consumers.
"Your organisation has concluded that there are no competitive issues in the licensed trade regarding the drinks tie and see no reason for further investigation. What an absolutely ridiculous conclusion," Brookes writes.
"Those of us who spent a lot of time and energy working to provide you with evidence will feel suitably astonished and angry."
Brookes said his company's submission showed "very clear evidence, in numerical examples, of how the beer tie operated by the big pub companies strangles competition".
He added: "Do you not think it anti-competitive that Wetherspoons' pubs sell drink often at lower prices than our tied pub can buy for; or that supermarkets can sell to Joe Public products that cost tied licensees three times the price to buy? How do you not regard those practices as uncompetitive?"
Following the OFT's ruling, trade groups - including the British Beer & Pub Association and Independent Family Brewers of Britain - urged the industry to move on and unite over other issues, such as changes to the licensing regime and promoting cask beer.
