OFT delivers a blow to CAMRA - 27/10/2009

Camra (the Campaign for Real Ale) received a blow to its campaign to remove the tied-pub restriction from tenants of pubs who are obliged to buy beer only from large pub companies (the so called pubcos) often at above-market rates. Yesterday the competition watchdog, the Office of Fair Trading, decided after 90 days of consideration, that the tied-pub model did not harm the consumer and there were no competition problems arising from the tie. The OFT also rejected the suggestion that the higher prices that the tenants have to pay results in the end-user having to pay more for their pint despite acknowledging that tied-pubs charged 8p more for a pint of larger and 3p more for a pint of cider.

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