Mark Daniels: Industry competitive, says the OFT

So the Office of Fair Trading has announced today that it is not going to take any further action against the industry with regards to the Beer Tie, citing that it finds the industry "competitive" and therefore healthy for the consumer.

Cue much gnashing of teeth and wailing of breath from those who don't agree.

But here's the thing: is this decision really a surprise?

Whichever side of the argument you sit on when it comes to the Tie, it is impossible to argue that it affects the consumer, the end purchaser. Your customers. This is what the OFT's ultimate investigation was in to and, therefore, they were trying to establish whether eradicating the Beer Tie would make any difference to John and his mates when they come in for a quick half on their way home from work.

And it won't make a difference to them. Why? Because the vast majority of us openly admit that, were the Tie to be abolished and we became free to purchase our products from wherever we wish, we wouldn't put our prices down.

Those who argue that they would put their prices down would only do so by a relatively insignificant amount, and not by the jaw-dropping £1-per-pint quotes that were bandied about in the early days of the anti-tie movement.

Therefore, the consumer would not benefit and, on top of that, plenty of choice remains available to them in the guise of different pubs, different brands, different forms of entertainment.

Ipso facto, the OFT believes the industry remains competitive, customers have choice, and there is no further need for them to investigate the Tie.

I, as a tied tenant, might stand alone on this thought, but it was the obvious and logical conclusion to their specific investigation and it strikes me that, as an industry, we have become so blinkered by an obsession with the Beer Tie that we are failing to look at the rest of our business.

Changes in legislation, more red tape, ongoing financial difficulties, cheap supermarket booze, Sky television, social networking and online gaming are all attracting people to spend less time in pubs and more time at home.

We are witnessing one of the greatest changes in the way that individuals socialise these days and that, I feel, is a bigger challenge to all of us than the contracts we might find ourselves obligated to.