CAMRA labels pub company report 'whitewash'

Tuesday, 21, Dec 2004 12:00

Pub Companies Given a Clean Bill of Health

Whitewash Says CAMRA!

Issued: Monday 20th December 2004 Embargoed until 11.00am Tuesday 21st December

CAMRA today criticized the Trade & Industry Select Committee for failing to take a harder line to curb the power of pub chains and for not calling for the introduction of a guest beer for pubs owned by pub chains.

Mike Benner, CAMRA Chief Executive, said: "I think the outcome is a whitewash, which doesn't really call for action on anything".

The Committee found that no one pubco or brewer held a dominant position, however they were concerned that national brewers retain a stranglehold on the distribution of beer via distribution contracts pubcos have with the national brewers. They therefore want the Office of Fair Trading to keep an eye on the situation.

They however ruled out the removal of the tie, which they said would not benefit tenants but would advantage the national brewers.

The Committee ruled out the introduction of a "guest beer" for pub chains which Mr Benner claimed "would provide consumers with more choice and small local brewers with improved access to market". The Committee however claimed that to allow tied tenants the option of a guest beer of a particular type would run contrary to EU Competition Law and could lead to the UK Government being challenged in the European Courts.

The Committee recommended that pubcos allow their tenants more flexibility in the choice of products they sell. "CAMRA will be urging all pubcos to adopt this recommendation and pressing all pubcos to introduce a "guest beer" clause in their tenants agreements" said Mr Benner.

Benner concluded that he thought that, "The report was a missed opportunity".

The Committee has also fought shy of imposing a statutory code of practice on pubcos but said that if the industry does not show signs of accepting a voluntary code then the Government should not hesitate to impose a statutory code on it.

Note for Editors

CAMRA, the Campaign for Real ale, is a not-for-profit consumer organization with 75,000 members which campaigns for good beer and good pubs. CAMRA gave evidence to the DTI Select Committee.