OFT clears pubs over competition complaint
Commercial insurance
23rd October 2009
The common practice of pub lessees being force to purchase beer solely from the company owning their establishment does not have a detrimental effect on consumers, the Office of Fair Trading (OFT) has found.
Examining the issue of exclusive purchasing obligations, the body decided that such supply ties do not adversely affect the "competitive position" of pubs, as loss of sales would make any relationship that did unsustainable.
"Pub-owning companies are not therefore protected from competition by virtue of the supply ties agreed with their lessees," added the senior director of the OFT's goods group, Simon Williams.
The investigation was carried out following a complaint by the Campaign for Real Ale, which expressed concerns that exclusive buying arrangements restrict consumer choice and contribute to higher beer prices.
Its conclusion, which may be of interest to pub insurance seekers, was welcomed in a statement by British Beer & Pub Association chief executive Brigid Simmonds, issued yesterday.
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