21 July, 2004

UK: Wolverhampton & Dudley Breweries (W&DB) has claimed ending the beer tie could force it to close down one of its breweries. Speaking at the Trade and Industry select committee investigation into the beer tie, Stephen Oliver, managing director of W&DB’s tenanted division Union Pub Company, argued that keeping the tie was important because of the heritage of the company’s two breweries in Wolverhampton and Burton, Quantum Business Media wrote on July 20.

“I think we have got to think about what would happen to our business if the tie were broken. “The chances that the ales we sell would be replaced in many instances by products from major brewers and we would possibly see the closure of one or two of our breweries.” W&DB chief executive Ralph Findlay said that ending the tie would lead to the ‘lagerisation’ of pubs. “The risk is that the companies to benefit from the removal of the tie would be the lowest cost producers,” he said. “That in my view would be the lager brands and national brewers. The move towards lager that we have seen the market over the past 10 years would be exacerbated.”

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