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Regulator rules on pub 'super complaint'
THE consumer regulator is set to announce today whether tie-in arrangements which force pub tenants to take beer supplies only from their landlords should be referred to the Competition Commission.
A spokesman for the Office of Fair Trading (OFT) said the statement, which has been eagerly awaited by tenanted operators such as Punch Taverns, Enterprise Inns and Marston's will be issued at 7am.
The OFT investigation followed a "super complaint" by the Campaign for Real Ale (Camra) which claimed "high rents and 'tied' beer prices are driving many good pub landlords out of business and contributing
to the destruction of Britain's pubs."
Camra was entitled to raise the "super complaint", which compelled the OFT to investigate the issue, because of its status in Britain as a recognised consumer body.
More than 50 pubs are closing each week, according to the British Beer and Pubs Association, which represents the industry. Tenanted operators, already grappling with massive debt levels, the impact of the recession and competition from cheap alcohol offers in supermarkets, will be hoping a referral is avoided.
"The industry has been declared 'fit for purpose' 23 times over the past several decades, so we believe that it should be in the clear this time.
"However, it never pays to second guess the regulator," said Deutsche Bank analyst Geof Collyer.
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Saturday 11 February 2012
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