The moral maze
The fictional publican in the first post pays a lot more for the
"approved" beer than the guest ale sold by the local brewer. The tie
inflates the price of beer because the tied brewers take a bigger cut
per barrel than the small guys, and the pubcos just sit in the middle,
raking in the money as the barrels go by. Are we suggesting that a
publican in a tied house would be able to reject the in-house beers
altogether and source all of his own? That would make it impossible for
the pubcos. Investors wouldn't be interested in a business which had
lost its licence to print money. Surprising they never nationalised the
brewing industry in a big way, really. There's probably as much in the
profit as there is in the duty, so why not have both?
If only there were enough free houses, we could vote with our feet.
Until then, the fictional publican buys his under-the-counter beer in
an attempt to level up the playing field, and as I sup my fictional
pint in my dream, I wonder when the bubble will burst for him and what
the consequences will be.
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