Brakspear facing OFT complaint
Brakspear is being threatened with a complaint to the Office of Fair Trading (OFT) on the grounds that it is "abusing" its local market dominance to charge tenants too much for beer.
The case hinges on the argument that the pubco is able to over-charge because it operates around 40% of the pubs in the local area.
It is being spearheaded by solicitor Rupert Croft — who famously handled the Bernard Crehan case against Inntrepreneur — on behalf of Brakspear tenant Mira Bateman, who is also seeking compensation for personal injury.
This is Croft's second attempt to argue against the tie on local competition grounds — the first failed against Greene King five years ago.
This time Croft is highlighting last year's OFT's report into the beer tie, triggered by the Campaign for Real Ale (CAMRA) "super complaint", which said local markets can be considered in assessment of market dominance.
Bateman, of the Plowden Arms in Henley, Oxfordshire, said Brakspear pubs dominate the Henley area, and claims the firm has abused this by "imposing unfair selling prices".
Croft said: "The Competition Act applies not only to the UK as a whole, but also to any part of it. The OFT's recent report in response to CAMRA's super-complaint confirmed that local markets can be considered in the assessment of dominance."
Brakspear refutes claims
Chief executive Tom Davies said: "Brakspear prides itself on being an approachable company that looks after its tenants. Our aim is to help them to run thriving pubs that deliver them good returns. Since 2005 we have invested nearly £40,000 in maintenance to keep the Plowden Arms in good condition, and investment to help the tenant to improve her business.
"We are waiting for clarification of the intended complaint to the OFT and without this it is difficult for us to answer the allegations. We do, however, refute the claim that Brakspear is in a dominant position in the area.
"As regards the claim for personal injury, our tenants at the pub are JMB Inns Ltd, who employ Mrs Bateman. Her claim is against her employer."
