In 1989, licensing legislation passed by
Margaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher (; 13 October 19258 April 2013) was Prime Minister of the United Kingdom from 1979 to 1990 and Leader of the Conservative Party (UK), Leader of the Conservative Party from 1975 to 1990. S ...
's Conservative government made it possible for a
tied pub
A pub (short for public house) is a kind of drinking establishment which is licensed to serve alcoholic drinks for consumption on the premises. The term ''public house'' first appeared in the United Kingdom in late 17th century, and was ...
to stock at least one guest beer from a different brewery.
The
Monopolies and Mergers Commission
The Competition Commission was a non-departmental public body responsible for investigating mergers, markets and other enquiries related to regulated industries under UK competition law, competition law in the United Kingdom. It was a competiti ...
was concerned that the market concentration of the big six
brewers at 75% represented a
monopoly
A monopoly (from Greek language, Greek el, μόνος, mónos, single, alone, label=none and el, πωλεῖν, pōleîn, to sell, label=none), as described by Irving Fisher, is a market with the "absence of competition", creating a situati ...
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. One consequence of this legislation was that the brewers sold off their less-profitable pubs.
Following a Government review in 2000, the Beer Orders were revoked by early 2003.
Revocations of Monopolies and Restrictive Practices Orders – BERR
Although no longer required, it is still common for pubs offering real ale
Real ale is the name coined by the Campaign for Real Ale (CAMRA) for beer that is "brewed from traditional ingredients, matured by secondary fermentation in the container from which it is dispensed, and served without the use of extraneous car ...
to offer rotating guest beers from breweries other than the supplier of their standard range of ales, to offer variety to their customers.
References
Pubs in the United Kingdom
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