Expert calls for investigation to aid smaller brewers
Beer expert Roger Protz (pictured) is calling on the Office of Fair Trading to launch an investigation into barrelage discounts, which he claims are putting small brewers out of business.
Mr Protz, the editor of the Good Beer Guide produced by the Campaign for Real Ale, claims pub companies and brewing giants are squeezing micro-brewers out of the market by demanding large discounts on their bulk orders.
He has warned that many small brewers cannot compete with the discounts demanded by the larger players and may be forced to close and he has attacked the discounts as being of no benefit to licensees or drinkers because they keep beer prices high.
Writing in the Good Beer Guide, Mr Protz said: "At present, the cosy duopoly of beer giants and pub groups effectively keeps many regional and most craft brewers out of the pub groups' estates.
"A level playing field is required. If discounts are to be permitted, they should be fixed at a level that will allow smaller brewers to gain access to pub groups' estates.
And the benefits of discounts between pub group and brewer must be passed onto licensees so they can share in the benefits and keep beer prices down.
"The evidence suggests discounts distort the market and keep beer prices artificially high."
This follows criticism from the commercial director of the Society of Independent Brewers Nick Stafford, who owns the Hambleton brewery in Yorkshire.
He claims small brewers are effectively excluded from 73 per cent of the UK's pubs.
But Mark Hastings from the British Beer & Pub Association said the beer market was competitive and, like any other commercial market, there would be winners and losers. "The secret of winning is to market a beer effectively," he said.
Related stories:
Industry players slammed for ousting micro-brewers (19 October 2001)