CAMRA plans challenge to pub 'beer tie' ruling

Beer lobby group the Campaign for Real Ale (CAMRA) is continuing its battle to free tenants from the 'beer tie' system, which sees them obliged to buying drinks from their landlords.

The group plans to launch a legal challenge against the Office of Fair Trading, which rejected CAMRA's 'super complaint' in October, finding that the system - which obliges lessees to buy their stock from the company that owns the pub - did not affect prices or consumer choice.

According to CAMRA's original complaint, the system is anti-competitive, leading to higher prices and limited choice for consumers, while contributing to the demise of the 52 pubs that it says are closing each week across the UK.

However, in order for the challenge to go ahead, the group says it must first raise money to fund it, and is appealing for contributions from CAMRA members, trade bodies, and anyone else with an interest in the industry.

Chief executive Mike Benner said that the group was hopeful of overturning the OFT's decision, citing a successful 2005 appeal by the Association of Convenience Stores which was successful at a tribunal.

"Pending the success of our appeal, CAMRA remains optimistic of Government intervention or a referral to the Competition Commission for a full investigation into the UK pub market," he added.

The call to sever beer ties was also raised by the Federation of Small Businesses (FSB) in 2008, while a report earlier this year by the Business and Enterprise Committee called for the OFT to refer the issue of supply ties to the Competition Commission.

2009 has been particularly tough for pubs, according to the British Beer and Pub Association, which recently published claims that 11 London pubs were closing each week in the first half of the year.

IMAGE PA Wire