The Campaign for Real Ale (Camra) has hit out at pub companies for their unfair method of setting rents as it submitted its super complaint to the Office of Fair Trading (OFT).
The body criticised the current system of setting rents as “seriously flawed” saying that it was leading to higher prices in pubs and contributing to pub closures.
It also called on pub companies to allow licensees greater access to local brewers and for regulation to be introduced to prevent pubs being sold with restrictive covenants.
Camra, however, said that it would be a mistake to totally abolish the beer tie as it would lead to global brewers dominating the market.
The super complaint will force the OFT to decide within 90 days whether it will investigate the beer tie through a full market study or take other action.
Mike Benner, Camra’s chief executive, said: “Exploitation of ‘beer tie’ agreements and the unfair method of setting pub rents are harming consumers and society as a whole.
“It is enshrined in EU law that consumers must get a fair share of the benefits arising from exclusive purchasing deals such as the ‘beer tie’, but this is often not the case. We hope that the OFT will act to deliver a fair share for Britain’s 14 million regular pub goers. Reform of the ‘beer tie’ along with a framework of support from government is urgently required to save the pub from extinction.
“Total abolition of the ‘beer tie’ would be a grave error and would be likely to turn the current storm of pub closures into a hurricane and lead to increased domination of the beer market by global brewers. Abolishing the ‘tie’ would be the classic example of ‘chucking the baby out with the bath water.
“Our ‘super-complaint’ will give the OFT the opportunity to take swift action to ensure the ‘beer tie’ works fairly in future.
“Clearly there are a number of reasons why Britain’s pubs are under pressure, not least the recession and our punitive beer tax regime, but the evidence is clear that the ‘tie’ must be reformed if these valuable small businesses are to survive and thrive.
“In response to the BEC report, some companies have taken some positive steps to improve matters and we welcome that progress, but legally-binding reform is still required to ensure a fair deal for consumers.”
