Intervention in the Modern UK Brewing Industry
This is the story of the radical intervention carried out by the Thatcher administration in response to 1986-89 Monopolies and Mergers Commission inquiry into brewing. It describes the creation of big brewers, the official investigations into what many sa
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Intervention in the Modern UK Brewing Industry by John Spicer Chris Thurman John Walters Simon Ward
© John Spicer, Chris Thurman, John Walters and Simon Ward 2012 Foreword © Anthony Hilton 2012 Softcover reprint of the hardcover 1st edition 2012 978-0-230-29857-6
All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2012 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN 978-1-349-33478-0 DOI 10.1057/9780230355583
ISBN 978-0-230-35558-3 (eBook)
This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalogue record for this book is available from the Library of Congress. 10 21
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Contents List of Figures and Tables
vii
Notes on the Authors
ix
Acknowledgements
x
Foreword
xii
Introduction
xiv
1
The “Big Six” Brewers and the Early Investigations
1
2
Milestones on the Road to a Monopoly Reference
18
3
The State of Affairs in 1985
31
4
The OFT Prepares its Case
41
5
The Conduct of the Inquiry
51
6
The MMC Receives the Evidence
58
7
Radical Change Proposed
73
8
Mixed Reactions to the Report
92
9
The Government Confronts the Recommendations
103
10
The Beer Orders Emerge
119
11
Complying with the Orders
128
12
Four More Reviews
139
13
The Big Brewers Fall into Foreign Hands
152
14
The Regionals React
165
15
Pub Companies and Licensees
173
16
Prices and Choice
184
17
The Beer Market
195
18
The Beer Orders are Revoked
205
19
Pubcos Move Centre Stage
210
20
Summary and Conclusions
221
What if…?
245 v
vi Contents
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