MPs have warned that new laws could be introduced governing the relationships of landlords and pub owners. Existing laws have been criticised for stifling competition, with the Campaign for Real Ale (CAMRA) complaining that beer ties, whereby landlords must buy beer from pub owners, restrict competition. The concern has been echoed by several reports, including one recent report by the cross-party Business, Innovation and Skills Committee. The Committee warned the pub industry that unless it solves the problem by June 2011, beer ties will be investigated in a bid to increase competition in the food and drink industry.
The Committee also urged the Office of Fair Trading (OFT) to review its October 2009 ruling that beer ties had no impact on competition on the pub sector. While pub companies argue they need to influence the running of pubs to make a profit, critics claim that they are overly empowered in the relationship with landlords, and can impose high rents and withhold discounts on a selection of drinks including beers, wines and spirits.
The British Beer and Pub Association claims the issues will be addressed by the new Framework Industry Code, which will provide greater transparency to tenants.
MPs Critical of Beer Ties
Thu, 11 Mar 2010
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