Beer Orders

Royal_Coat_of_Arms_of_the_United_Kingdom_(variant_1,_1952-2022)

Beer Orders were a set of regulations introduced by the United Kingdom government in 1989 to address anti-competitive practices in the brewing industry. The orders were part of a broader effort to increase competition and consumer choice in the beer market.

Background

During the 1980s, the UK beer market was dominated by a small number of large breweries that owned extensive tied estates of public houses (pubs). These breweries often required their pubs to sell only their own products, limiting consumer choice and stifling competition. The Monopolies and Mergers Commission (MMC) conducted an investigation into the industry and found that these practices were detrimental to both consumers and smaller brewers.

The Orders

The Beer Orders were introduced following the MMC's recommendations. The key provisions included:

• Limiting the number of tied pubs that a brewery could own to 2,000.
• Requiring breweries owning more than 2,000 pubs to offer a guest beer from another brewery.
• Allowing tenants of tied pubs to purchase non-beer products from other suppliers.

Impact

The Beer Orders had a significant impact on the UK beer market. Many large breweries chose to divest their pub estates to comply with the new regulations. This led to the rise of pub companies (pubcos), which owned pubs but did not brew beer. The orders also encouraged the growth of microbreweries and increased the variety of beers available to consumers.

Repeal

In 2003, the Beer Orders were repealed by the Labour government. By this time, the landscape of the UK beer market had changed significantly, with increased competition and a more diverse range of products available to consumers. The repeal was seen as a recognition that the original objectives of the Beer Orders had been largely achieved.

Legacy

The Beer Orders are often credited with transforming the UK beer market and paving the way for the modern craft beer movement. They highlighted the importance of competition in ensuring consumer choice and fostering innovation within the industry.

See also

• Beer in the United Kingdom
• Microbrewery
• Pub company
• Monopolies and Mergers Commission