'The Office of Fair Trading did not properly examine the lack of competition in the UK pub sector and its impact on consumers. CAMRA is appealing this decision and we urge the country's 15 million regular pub goers to get behind our campaign to help save the Great British Pub and secure a fair deal for consumers.' (Mike Benner, CAMRA Chief Executive)
CAMRA, the Campaign for Real Ale, is today calling on pub goers to donate to its 'Consumers v. OFT Pub Market Ruling' Campaign Fund to assist in campaigning for a sustainable future for UK pubs, through reform of the beer tie.
The beer tie, as currently operated by large pub companies, forces publicans to buy beer at around 50 pence a pint more than they would pay on the open market. These inflated costs are passed onto pub goers through higher prices, poor facilities in pubs and the closure of 7 pubs a day. Reform of the beer tie to allow effective competition between pubs is long overdue.
On December 22nd 2009, CAMRA issued a legal challenge to the Office of Fair Trading (OFT) via the Competition Appeals Tribunal after the OFT rejected CAMRA's super-complaint in October, which focused on high prices, pub closures and restricted choice. Having lodged the appeal, CAMRA is relying on donations from pub goers to fund its ongoing campaign, and has set up a new website to receive donations at www.camraappeal.org.uk.
CAMRA will be supported in its appeal by Edwin Coe LLP, and Europe Economics.
Mike Benner, CAMRA Chief Executive, said:
'We are today calling for pub goers to support CAMRA's campaign to secure a fair deal for consumers by donating to our campaign to ensure the beer tie works in a fair and competitive manner.
'CAMRA has found that a lack of competition in the UK pub market is costing consumers £2.5 billion a year, as well as harming the pub-going experience through reduced quality and choice. The lack of effective competition is also a key reason why 7 pubs a day are closing, causing irreparable damage to local communities.
'Regrettably the OFT did not examine competition in local pub markets which is why we have taken the decision to appeal. The OFT's assertion that consumers benefit from a good deal of competition and choice in the pub sector is in our view not supported by the available evidence.
'CAMRA has pledged funds to the appeal process and is urging consumers to contribute to ensure our campaign stands the best chance of success. This is an historic opportunity for pub-goers to stand up to unfair conditions in the UK pub market and to assist the Office of Fair Trading in understanding the scale of harm to consumers.
ENDS
Notes to editors:
CAMRA, the Campaign for Real Ale, is a not-for-profit, independent consumer organisation which campaigns for real ale, real pubs and consumer rights. CAMRA currently has over 108,000 consumers as members.
CAMRA's super-complaint, 'A Fair Share for the Consumer', was published in July and can be viewed at www.camra.org.uk/supercomplaint
CAMRA's super-complaint centred on the need to reform beer tie arrangements to prevent large companies exploiting tie arrangements that prevent tied publicans from buying beer on the open market at fair prices. CAMRA argued that the wholesale prices paid by tied publicans are considerably higher, around £20,000 per year for an average pub, than would prevail in a competitive market. The lack of competition, particularly in areas dominated by tied pub companies, mean that consumers pay higher prices, and suffer a reduced quality of experience and a restricted range of products. CAMRA has calculated that if beer prices had only risen in line with inflation since 1990 then collectively consumers would be better off by £2.5 billion a year.
For further information:
CAMRA Press Office, 01727 798443
Mike Benner, CAMRA Chief Executive, 07971 591224
Jonathan Mail, CAMRA Head of Public Affairs, 07720 724733
Iain Loe, CAMRA Research and Information Manager, 07801 706607
Jon Howard, CAMRA Press Officer, 07939 425471
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