OFT to review Beer Orders

The Office of Fair Trading (OFT) is to review the relationship between the UK's large brewers and the country's pubs.

In a statement this afternoon, the OFT said it would be taking a new look at the Beer Orders and the related undertakings given by the brewers.

The Beer Orders were laid down 10 years ago to control the relationship between brewing and pub retailing, with the aim of widening consumer choice and reducing prices.

Among other restrictions, they required large brewers either to get out of brewing or to free from tie any pubs over a permitted maximum.

The review will consider whether the orders and undertakings should be removed, relaxed, tightened or stay the same.

John Bridgeman, director general of Fair Trading, said in a statement: "We will be consulting widely to determine the impact of the orders and subsequent changes in pub ownership - as well as brewery consolidation and rationalisation - on competition and consumer choice.

"I will want to be sure that any regulation efficiently promotes competition and safeguards consumer choice."

The terms of reference for the review will be published in the next few weeks.