Perhaps the non-event of the week was trade secretary Stephen Byers' announcement on Friday that the 'guest beer' provisions would stay in the Beer Orders following the OFT's review.
Once, Whitbread sells its 1,700 leased pubs, some time next year, the Orders will effectively be redundant. So why did Byers go against the advice of the Director General of Fair Trading and maintain 'guest beers'?
The DGFT said the provision was no longer of use and should go. But Byers wanted it kept. Was this just to show his commitment to small businesses, in this case tenanted pubs? Or is it that he may want to use the device some time in the future if the leased pub companies become too big for comfort?
By removing the pub owning cap on brewers, he has recognised that he can do nothing to stop pub chains from growing bigger and bigger û local monopolies apart.
But this week, the trade secretary has a more difficult decision to start grabbling with. The Competition Commission's report on Interbrew's takeover of Bass's brewing business should land on his desk.
There is a growing belief that the deal will go through. Interbrew's chairman Paul De Keerfmaeker said on Friday that he hopes the company is "coming to a reasonable solution" with the UK competition authorities. Interbrew lobbyists are certainly hard at work.
The Mail 0n Sunday believes the deal will be approved, while the Observer reckons Interbrew will have to sell off a big brand, most likely Carling, as part of a deal.
The DTI is unlikely to do anything that could be seen as undermining the UK's manufacturing base û and brewing is manufacturing. Approval is now likely, but with a condition or two
The big pub owning and retailing groups û in particular Punch and Wetherspoon û that have called for curbs. Although they will not get all they want, the balance of power in brewing has now shifted significantly towards the retailers.
Vertical integration is as good as dead û until, of course, the likes of Punch and Wetherpoon decide to start buying up their own beer brands and suppliers.
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The Director-General of Fair Trading sent his advice on the Beer Order to Stephen Byers on July 31. The Office of Fair Trading also published his report today (Friday). Copies can be obtained via the OFT website, http://www.oft.gov.uk
• See Guest beers to stay in Beer Orders overhaul
Once, Whitbread sells its 1,700 leased pubs, some time next year, the Orders will effectively be redundant. So why did Byers go against the advice of the Director General of Fair Trading and maintain 'guest beers'?
The DGFT said the provision was no longer of use and should go. But Byers wanted it kept. Was this just to show his commitment to small businesses, in this case tenanted pubs? Or is it that he may want to use the device some time in the future if the leased pub companies become too big for comfort?
By removing the pub owning cap on brewers, he has recognised that he can do nothing to stop pub chains from growing bigger and bigger û local monopolies apart.
But this week, the trade secretary has a more difficult decision to start grabbling with. The Competition Commission's report on Interbrew's takeover of Bass's brewing business should land on his desk.
There is a growing belief that the deal will go through. Interbrew's chairman Paul De Keerfmaeker said on Friday that he hopes the company is "coming to a reasonable solution" with the UK competition authorities. Interbrew lobbyists are certainly hard at work.
The Mail 0n Sunday believes the deal will be approved, while the Observer reckons Interbrew will have to sell off a big brand, most likely Carling, as part of a deal.
The DTI is unlikely to do anything that could be seen as undermining the UK's manufacturing base û and brewing is manufacturing. Approval is now likely, but with a condition or two
The big pub owning and retailing groups û in particular Punch and Wetherspoon û that have called for curbs. Although they will not get all they want, the balance of power in brewing has now shifted significantly towards the retailers.
Vertical integration is as good as dead û until, of course, the likes of Punch and Wetherpoon decide to start buying up their own beer brands and suppliers.
•
The Director-General of Fair Trading sent his advice on the Beer Order to Stephen Byers on July 31. The Office of Fair Trading also published his report today (Friday). Copies can be obtained via the OFT website, http://www.oft.gov.uk
• See Guest beers to stay in Beer Orders overhaul
