The Campaign for Real Ale, the World's largest drinkers' consumer group, has reacted with anger and disbelief at the DTI's decision to revoke the Beer Orders. CAMRA is predicting the loss of hundreds of community pubs and the closure of dozens of small brewing companies should deregulation be allowed to proceed.
Mike Benner, Head of Campaigns and Communications said, "The revocation of the Beer Orders will send shock waves through the industry as there will be nothing to stop large brewers and pub chains tying up huge chunks of the market, restricting access to smaller brewers and smashing consumer choice".
CAMRA claims:
1. That the DTI is acting AGAINST the advice of the Office of Fair Trading
following its review in 2000
2. That the move to allow brewers to prevent pubs from being pubs in the
future if sold will lead to HUNDREDS of community pub closures particularly in
rural areas where pubs are most at risk. This is despite steps by DTLR to
protect rural pubs through improved planning measures and rate relief.
3. That breweries will be allowed to REFUSE to supply beer for resale enabling
large players with key brands to FORCE smaller wholesalers and retailers to
stock all or most of their products, even if they only want one.
4. That revocation will allow brewers to charge DIFFERENT prices to any number
of different customers as they will not be obliged to publish wholesale price
lists.
5. Revoking the guest beer provision will allow any brewer to buy and tie many
thousands of pubs to its own products, excluding smaller brewers and WRECKING
consumer choice
6. Lack of alternative anti-competitive controls specific to the industry will
hand more brewing, distribution and retailing power to the large brewers and
pub retailers.
Mike Benner added, "The DTI is pulling the rug from under Britain's 15 million beer drinkers and 400 small brewing companies and leaving us all to the mercy of global brewing giants and massive pub chains who will now be able to control the market unhindered. The decision, made with no consultation of the parties involved, demonstrates a mind-boggling lack of understanding of the industry and it will have a huge impact on choice and competition for years to come."
"Revocation of the Orders is untimely and inappropriate as they still play an important role in protecting consumers and smaller operators. There must be an urgent consultative review of the entire industry which would result in a detailed Government strategy to ensure access to market for small brewers, fair choice for consumers and steps to protect community pubs from closure. Otherwise our unique beer and pubs industries are likely to be consumed entirely by a small handful of global giants."
Notes for editors
1. The DTI press release 'Melanie Johnson calls time on Beer Orders was
issued on 19th February
2. The Beer Orders are not scheduled for review by the Director General of
Fair Trading until 2005
3. The Government response to the OFT review of the beer orders was issued on
1st December 2000
