Guest beer
Encyclopedia
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.
The Monopolies and Mergers Commission was concerned that the market concentration of the big six brewers
at 75% represented a monopoly
situation. The Supply of Beer (Tied Estate) order of 1989
(better known as the "Beer Orders") allowed publicans freedom to buy non-beer drinks from any source (not just the controlling brewery) and to sell at least one draught beer from a different brewery.
In addition to this, many of the larger brewers were forced to sell many of their pubs off, with the intention that they would become free houses or pass on to smaller brewers, hence increasing choice and free trade. The unintended consequence
of this legislation was that the brewers sold off their less profitable pubs.
However, following a Government review in 2000, the Beer Orders were revoked by early 2003.
Margaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher, was Prime Minister of the United Kingdom from 1979 to 1990...
's Conservative government made it possible for a tied
Tied house
In the UK a tied house is a public house that is required to buy at least some of its beer from a particular brewery. This is in contrast to a free house, which is able to choose the beers it stocks freely.- Definition of "tied" :...
pub to stock at least one guest beer from a different brewery.
The Monopolies and Mergers Commission was concerned that the market concentration of the big six brewers
Brewery
A brewery is a dedicated building for the making of beer, though beer can be made at home, and has been for much of beer's history. A company which makes beer is called either a brewery or a brewing company....
at 75% represented a monopoly
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...
situation. The Supply of Beer (Tied Estate) order of 1989
Beer Orders
The Supply of Beer Order 1989 and The Supply of Beer 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...
(better known as the "Beer Orders") allowed publicans freedom to buy non-beer drinks from any source (not just the controlling brewery) and to sell at least one draught beer from a different brewery.
In addition to this, many of the larger brewers were forced to sell many of their pubs off, with the intention that they would become free houses or pass on to smaller brewers, hence increasing choice and free trade. The unintended consequence
Unintended consequence
In the social sciences, unintended consequences are outcomes that are not the outcomes intended by a purposeful action. The concept has long existed but was named and popularised in the 20th century by American sociologist Robert K. Merton...
of this legislation was that the brewers sold off their less profitable pubs.
However, following a Government review in 2000, the Beer Orders were revoked by early 2003.