Family brewers warn MPs against scrapping the beer tie

By James Wilmore

- Last updated on GMT

Related tags Tie Brewing Beer

Family brewers have written to MPs fiercely defending the beer tie as part of a bid to increase politicians' understanding of the controversial...

Family brewers have written to MPs fiercely defending the beer tie as part of a bid to increase politicians' understanding of the controversial issue.

The Independent Family Brewers of Britain (IFBB) has sent a new four-page pamphlet to all MPs defending the tie, arguing it is of "paramount importance" to their businesses.

It comes just weeks before the Business, Innovation and Skills committee is due to make a public call for evidence, prior to MPs reconvening to check on pubco behaviour.

Paul Wells, the IFBB's chairman, admitted to The Publican​ he was "frustrated" the tie had been given a bad name by big companies. But he argued the industry had been quite coherent during a "difficult" time.

"The debate had become about whether the tie was good or bad, yes or no," he said. "MPs are aware it's a big issue, but they don't get the insight into the industry. It's a lack of understanding we need to really work at this year.

"They (MPs) still see the tie as a restraint to trade. We need to remind them it's a really good low-cost entry into the industry."

The IFBB's 29 members, own a total of 4,200 pubs - and no member has more than 400 outlets.

Wells said forcing a free-of-tie option on small brewers would be "crazy". "We are all about tying for beer," he said. And a guest beer option would also not work for small brewers, as they brew beer to sell in their pubs, he added.

The three key reasons for keeping the tie, the IFBB argues, is it is in the best interests of the tenant, as brewers offer "extensive support"; it benefits consumers by offering a wider choice of locally brewed beers to pubs; and it helps local communities by providing jobs.

Wells said his concern was the "unintended consequences" of abolishing the tie, which he said was always a risk when MPs intervene in business.

"There is a difference between a brewery tie and a property tie," he added. "The introduction of leases and lease premiums is where the problems have been. But the brewery tenancy has stood the test of time as the interests of both parties are aligned."

Wells said he had already received a couple of responses from MPs saying they'd "like to understand the issue a bit more".

Asked whether he thought the big pubcos have reformed, he said: "We'll find out, I don't know."

Related topics Beer

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