Beer Orders
Encyclopedia
The Supply of Beer 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 Secretary of State for Trade and Industry
in December 1989.
The Orders restricted the number of tied pubs that could be owned by large brewery groups in the United Kingdom to 2000, and required large brewer landlords to allow a guest ale
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
). The Beer Orders were revoked in January 2003, by which time the industry had been transformed.
The acts followed publication of "The Supply of Beer: A report on the supply of beer for retail sale in the United Kingdom", an investigation by the Competition Commission
. The Report contained a number of adverse findings related to the vertical links 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.
Secretary of State for Trade and Industry
The Secretary of State for Business, Innovation and Skills is a cabinet position in the United Kingdom government. Its secondary title is the President of the Board of Trade...
in December 1989.
The Orders restricted the number of tied pubs that could be owned by large brewery groups in the United Kingdom to 2000, and required large brewer landlords to allow a guest ale
Guest beer
In 1989, licensing legislation passed by Margaret Thatcher's Conservative government made it possible for a tied pub to stock at least one guest beer from a different brewery....
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
Punch Taverns
Punch Taverns plc is the largest pub and bar operator in the United Kingdom, with around 6,800 leased, tenanted and managed pubs. It is headquartered in the traditional brewing centre of Burton upon Trent in Staffordshire...
, Enterprise Inns
Enterprise Inns
Enterprise Inns Plc is a UK leased and tenanted pub company, headquartered in Solihull, West Midlands in the United Kingdom.-History:Enterprise Inns was founded by Ted Tuppen in 1991, initially with 368 pubs from Bass...
, and Admiral Taverns) from the older brewing-and-owning companies (notably Allied Lyons
Allied Domecq
Allied Domecq PLC was an international company, headquartered in Bristol, UK that operated spirits, wine, and quick service restaurant businesses. It was once a FTSE 100 Index constituent but has been acquired by Pernod Ricard.-History:...
, Bass, and Scottish & Newcastle
Scottish & Newcastle
Scottish & Newcastle plc was a "long alcoholic drinks" company with positions in 15 countries, including UK, France and Russia. It was headquartered in Edinburgh, Scotland, UK. In the last 20 years, S&N expanded significantly from its home base to become an international business with beer...
). The Beer Orders were revoked in January 2003, by which time the industry had been transformed.
The acts followed publication of "The Supply of Beer: A report on the supply of beer for retail sale in the United Kingdom", an investigation by the Competition Commission
Competition Commission
The Competition Commission is a non-departmental public body responsible for investigating mergers, markets and other enquiries related to regulated industries under competition law in the United Kingdom...
. The Report contained a number of adverse findings related to the vertical links 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.