OFT said pub "beer ties" raise no price

OFT says 'pub ties' are not raising beer prices"The beer tie has not prevented pubs related to offering a wide choice of beers to consumers," said the OFT. Photo: AP

OFT blocked by its initial conclusions last October that "the pub industry is competitive in all" and said it was concluded that and that there are insufficient grounds to justify action.

He revisited the investigation after a call to the campaign for real ALE (Camra), who introduced the original super complaint in July 2009 for high rents and beer ties were forced to good business owners fear leading to higher consumer prices.

"Beer tie has not prevented pubs related to offering a wide choice of beers to consumers," the OFT said, adding that he had found that pub companies generally possess a considerable range of suppliers, including small brewers beer source.

Ann Pope, OFT Director, commodity, stated that, while the regulator recognized pub tenant concerns on contractual issues with pub companies, emphasis had been "to assess if the market is working well for consumers".

Camra said the OFT decision was based on a "tolerant and selective evidence review.

Mike Benner, Camra CEO, stated: "the OFT analysis recognizes that tied pub owners on average pay £ 20,000 more for their beer every year as a result of their linked and unable to purchase beer on the open market."

"CAMRA, unlike the OFT recognizes higher imposed tied pub owners costs will inevitably passed on consumers from higher prices for investment and the pub closures".

Pub large British companies have always denied any wrongdoing, but Business Secretary Vince Cable said MEPs recently that the pubcos were 'within internship"and has promised legislation if they fail to bring about changes in June 2011.

The industry is bringing in a new code of practice, with new options for voluntary related owners lease.


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