It’s often argued that the existence of the beer tie is a major factor holding back small brewers. However, if you listen to licensees it doesn’t appear that micro-brewers’ products would be top of their list. When asked in a survey what beer they would most want to stock if they had a free choice, the winner was…
Carling!
In fact all the Top 10 were the predictable mass-market kegs.
This gives a clear picture of what life would be like if the tie were completely removed. It might open up more opportunities for the very smallest brewers, but it would lead to a situation where the vast majority of bars were dominated by the same row of national and international keg brands, and the middle ground of brewers would largely disappear. Provided it does not lead to market dominance in specific areas, the brewery tie enhances competition rather than diminishing it.
The pub company tie is a different matter, but the existence of brewers like Thwaites and Robinson’s with substantial tied estates is a major bulwark of choice and diversity in the beer market. Genuine choice results not only from the total number of products available but also the degree to which the market is concentrated. Is there more real choice for the consumer in a market with 100 products, but where two account for 95% of sales, or in one with 20 products, but where 10 account for 95%?
And it should not be forgotten that, without the tie, cask beer would have virtually disappeared in Britain in the 60s and 70s.