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UK OKs pubs beer supply arrangement

(Agencies)
Updated: 2009-10-22 17:15

LONDON: The consumer regulator on Thursday gave the all-clear for leased pub operators to continue with an arrangement that forces tenants to take beer supplies only from their landlords.

The decision will come as a relief to Britain's biggest pub firms Punch Taverns and Enterprise Inns, who are already grappling with massive debts and struggling to cope with the impact of the recession and competition from supermarkets.

The Office of Fair Trading examined the beer tie arrangement after receiving a "super complaint" from the Campaign for Real Ale (Camra).

"Having examined the issues raised in the super-complaint, the OFT has not found evidence that supply ties are resulting in competition problems that are having an adverse impact on consumers," it said in a statement.

Camra was entitled to raise the complaint, which compelled the OFT to investigate, because of its status in the UK as a recognised consumer body.