Beer Orders

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Supply of Beer (Tied Estate) Order 1989
Statutory Instrument
Royal Coat of Arms of the United Kingdom (variant 1, 1952-2022).svg
Citation SI 1989/2390
Text of the Supply of Beer (Tied Estate) Order 1989 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk.
Supply of Beer (Loan Ties, Licensed Premises and Wholesale Prices) Order 1989
Statutory Instrument
Royal Coat of Arms of the United Kingdom (variant 1, 1952-2022).svg
Citation SI 1989/2258
Text of the Supply of Beer (Loan Ties, Licensed Premises and Wholesale Prices) Order 1989 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk.

The Supply of Beer (Tied Estate) Order 1989 and the Supply of Beer (Loan Ties, Licensed Premises and Wholesale Prices) Order 1989, commonly known as the Beer Orders, were statutory instruments made by the United Kingdom Secretary of State for Trade and Industry in December 1989.

Contents

Background

At the end of the 1980s, six national brewers dominated the market for beer sold in pubs in the UK. [1] These were Allied, Bass, Courage, Grand Metropolitan, Scottish & Newcastle and Whitbread.

This prompted concerns about lack of competition for consumers. In 1989, a report titled "The Supply of Beer: A report on the supply of beer for retail sale in the United Kingdom" was published [2] by the Competition Commission. The Report contained a number of adverse findings related to the vertical integration between brewing and pub retailing, and made recommendations aimed at loosening the tie between pub retailing and brewing to facilitate easier entry by, and increasing competition between, brewers, wholesalers and pub retailers.

The orders

The orders restricted the number of tied pubs that could be owned by large breweries in the United Kingdom to 2,000, and required large brewer landlords to allow a guest beer to be sourced by tenants from someone other than their landlord. The industry responded by spinning off purely pub-owning companies ("pubcos"), such as Punch Taverns, Enterprise Inns, and Admiral Taverns, from the older brewing-and-owning companies (notably Allied Lyons, Bass, and Scottish & Newcastle). Other companies were established such as Pub Estates Group to purchase some of the pubs for sale. By the end of 1992, Whitbread had sold almost 2,500 pubs, as a result of the orders. [3]

Revocation

The Beer Orders were revoked in January 2003, by which time the industry had been transformed from the position in the 1980s. A House of Commons report in 2004 found that "Under any of the market definitions we have chosen, no one company, be it pubco, brewer or retail pub chain, holds a dominant position in the total market for beer". [4]

Related Research Articles

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  1. is open to the public without membership or residency
  2. serves draught beer or cider without requiring food be consumed
  3. has at least one indoor area not laid out for meals
  4. allows drinks to be bought at a bar
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<span class="mw-page-title-main">Pub chain</span> Corporate ownership or franchising of pubs

A pub chain is a group of pubs or bars operating under a unified brand image. Pubs within a chain are tied houses and can, generally, only sell products which the chain owner sanctions. Pubs in a chain normally display their chain branding prominently and may also feature shared aspects, such as menus and staff uniforms.

<span class="mw-page-title-main">Boddingtons Brewery</span> Former regional brewery in Manchester, England

Boddingtons Brewery was a regional brewery in Manchester, England, which owned pubs throughout the North West. Boddingtons was best known for Boddingtons Bitter (Boddies), a straw-golden, hoppy bitter which was one of the first beers to be packaged in cans containing a widget, giving it a creamy draught-style head.

<span class="mw-page-title-main">Bass Brewery</span> British Brewery founded 1777

Bass Brewery is a British brewer founded in 1777 by William Bass in Burton-upon-Trent, Staffordshire, England. The main brand was Bass Pale Ale, once the highest-selling beer in the UK. By 1877, Bass had become the largest brewery in the world, with an annual output of one million barrels. Its pale ale was exported throughout the British Empire, and the company's iconic red triangle became the UK's first registered trade mark.

<span class="mw-page-title-main">McEwan's</span> Scottish beer brand

McEwan's is a brand of beer owned by Carlsberg Marston's Brewing Company. It was originally brewed by William McEwan's Fountain Brewery in Edinburgh, Scotland. The McEwan's brand passed to Heineken in 2008 after their purchase of Scottish & Newcastle's British operations. Heineken sold the brand to Wells & Young's in 2011, who sold their brewing operation, including the McEwan brand to Marston's in 2017. Cans and bottles are now brewed in Bedford, England.

<span class="mw-page-title-main">Tied house</span> Pub tied into a specific brewery

In the United Kingdom, a tied house is a public house required to buy at least some of its beer from a particular brewery or pub company. That is in contrast to a free house, which is able to choose the beers it stocks freely.

Webster's Brewery was a brewery that was founded in 1838 by Samuel Webster and operated at the Fountain Head Brewery in Halifax, West Riding of Yorkshire, England. Webster's Green Label, a light mild, and Yorkshire Bitter gained national distribution after the company was taken over by Watney Mann in 1972. Throughout the 1970s it was known for the advertising slogan: "Drives out the northern thirst".

Whitbread plc is a British multinational hotel and restaurant company headquartered in Houghton Regis, England.

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Mitchells & Butlers plc runs circa 1,784 managed pubs, bars and restaurants throughout the United Kingdom. The company's headquarters are in Birmingham, England. The company is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

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Punch Pubs & Co is a pub and bar operator in the United Kingdom, with around 1,300 leased pubs. It is headquartered in the traditional brewing centre of Burton upon Trent in Staffordshire. It was listed on the London Stock Exchange as a constituent of the FTSE SmallCap Index until its sale in 2016 for £403m to a private equity fund, Patron Capital, acting in concert with Heineken International who acquired 1,900 of Punch's pubs as part of the deal.

<span class="mw-page-title-main">Worthington Brewery</span> British brewery founded in 1761

Worthington Brewery, also known as Worthington & Co. and Worthington's, is a British brewer founded by William Worthington in Burton upon Trent in 1761. It is the second oldest continuously brewed British beer brand, after Whitbread. The best known Worthington beers are its Creamflow nitrokeg bitter and White Shield India Pale Ale.

<span class="mw-page-title-main">Stones Brewery</span> Brewery in Sheffield, West Riding of Yorkshire, England

Stones Brewery was a brewery founded in 1868 by William Stones in Sheffield, West Riding of Yorkshire, England, and purchased by Bass Brewery in 1968. After its closure in 1999, its major brand, Stones Bitter, has continued to be produced by the Molson Coors Brewing Company.

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<span class="mw-page-title-main">Camerons Brewery</span> Brewery established in County Durham, England

Camerons Brewery is an English brewery established by John William Cameron in Stranton, Hartlepool, County Durham, in 1865. It is the largest independent brewer in the North East of England, with a brewery capacity of 1.5 million hectolitres and a tied estate of 75 houses. It is one of the oldest industrial concerns in Hartlepool, and has historically been one of the largest employers.

<span class="mw-page-title-main">Spirit Pub Company</span>

Spirit Pub Company plc (Spirit) was a pub and restaurant company in the United Kingdom based in Burton upon Trent and originally formed by Punch Taverns. It was listed on the London Stock Exchange until it was acquired by Greene King in June 2015.

<span class="mw-page-title-main">Boddingtons Bitter</span> British beer

Boddingtons Bitter is a straw-golden bitter beer originally produced by Boddington & Co at their Strangeways Brewery in Manchester. It is now owned by AB-InBev and produced at their brewery in Samlesbury, Lancashire.

The Pubs Code etc. Regulations 2016 were introduced by the UK Government as part of the Small Business Enterprise and Employment Act 2015. The code was passed on 14 June 2016 and implemented on 21 July 2016.

References

  1. House of Commons Select Committee on Trade and Industry, https://publications.parliament.uk/pa/cm200405/cmselect/cmtrdind/128/12805.htm
  2. Competition Commission - The Supply of Beer
  3. Ritchie, Berry (1992). An Uncommon Brewer, the Story of Whitbread. London: James & James. p. 137. ISBN   978-0907383369.
  4. House of Commons Select Committee on Trade and Industry, https://publications.parliament.uk/pa/cm200405/cmselect/cmtrdind/128/12805.htm