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The Changing Structure of the UK Brewing and Pub Retailing Industry
Member rating: No Rating | Words: | Submitted: Mon Jun 19 2006
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THE CHANGING STRUCTURE OF THE UK BREWING AND PUB RETAILING INDUSTRY In the UK it had long been the tradition that breweries owned the majority of on-licensed premises as tied estates, where most pubs could only serve beers and products supplied by the brewery which owned them. Pubs existed mainly as outlets for breweries to sell their beer, over time this led to the growth of 6 major players, which controlled 42% of on-license trade in the UK. This led to smaller breweries finding it difficult "to realise economies of scale in production, distribution and marketing" Knowles, (2002, p70) From this the Monopolies and Mergers Commission undertook an investigation that resulted in the publication of The Supply of Beer Report. It was the belief of the MMC that: The complex monopoly had enabled brewers with tied estates to frustrate the growth of brewers without tied estates...over time; the monopoly has served to...
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