IFFB is accused of defending beer tie to protect its profits
Campaign group Fair Pint has accused the Independent Family Brewers of Britain (IFFB) of faking concern for the pub sector when its real interest is to defend its profits.
The IFFB this week wrote to the Office of Fair Trading arguing that the removal of the beer tie would lead to further pub and brewery closures, but Fair Pint claims that the "family" brewers are exploiting the tie by adopting the same business model as the pubcos in order to maintain profits and exclude new operators and small craft brewers from entering the market.
Steve Corbett, a tied publican and founder member of Fair Pint said: "We are not surprised that the IFFB's response to the OFT calls for the retention of the tie. The IFFB should stop pretending to hide behind a concern for the pub sector when it is clear that their main concern is defending their profits."
Corbett claims the "family" brewers use the tie to sell beer at significantly higher prices to tenants than to untied pubs or supermarkets and that they are exploiting the rent review process by hiking up rents to unsustainable levels.
He added: "The Business and Enterprise Select Committee report made it clear that the free-of-tie sector offers more variety in the range of real ales they sell. It is the tied sector which is dominated by the big national and international brewers. It is clear that the removal of the tie would lead to the reinvigoration of the pub sector and a market which would be more open to new entrants"
Outlawing beer tie would result in further pub closures, warns IFBB >>
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By Emma White
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