Statutory Instrument | |
Citation | SI 1989/2390 |
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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. |
Statutory Instrument | |
Citation | SI 1989/2258 |
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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.
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 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]
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]
A pub is a drinking establishment licensed to serve alcoholic drinks for consumption on the premises. The term first appeared in the late 17th century, to differentiate private houses from those open to the public as alehouses, taverns and inns. Today, there is no strict definition, but CAMRA states a pub has four characteristics:
John Smith's Brewery in Tadcaster, North Yorkshire, England, produces beers including John Smith's, the highest selling bitter in the United Kingdom since the mid-1990s.
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.
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.
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.
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.
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.
Beer has been brewed in England for thousands of years. As a beer brewing country, it is known for top fermented cask beer which finishes maturing in the cellar of the pub rather than at the brewery and is served with only natural carbonation.
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.
Ei Group plc, formerly known as Enterprise Inns plc, is the largest pub company in the UK, with around 5,000 properties, predominantly run as leased and tenanted pubs. Ei Group plc is headquartered in Solihull, West Midlands. It was listed on the London Stock Exchange until it was acquired by Stonegate Pub Company in March 2020.
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.
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.
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.
Truman's Brewery was a large East London brewery and one of the largest brewers in the world at the end of the 19th century. Founded around 1666, the Black Eagle Brewery was established on a plot of land next to what is now Brick Lane in London, E1. It grew steadily until the 18th century when, under the management of Benjamin Truman, and driven by the demand for porter, it expanded rapidly and became one of the largest brewers in London. Its growth continued into and through the 19th century with the expansion of its brewery and pub estate. In 1873, it purchased Philips Brewery in Burton and became the largest brewery in the world.
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.
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.
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.