Inquiry launched into pub companies' market dominance

Parliament is to launch an inquiry into the relationship between pub companies and their tenants.

The Trade and Industry Select Committee said in a statement: "Two decades after the beer orders were introduced to limit the power of big breweries, fears have been expressed amongst the public house community that the UK licensed trade is now being dominated by pub companies, or ‘pubcos'."

The inquiry will consider issues such as:

• The beer ties enforced by pubcos on their tenants

• The link between wholesale beer prices and the rents charged to tenants

• Pubcos' profit margins on beer.

The committee is asking for written evidence by 2 June.

Leased and tenanted pub operator Punch Taverns said it would make representations to the committee, adding: "Punch believes that the continued success of any tenanted or leased pub compnay is a consequence of its long-term, supportive business partnership with its retailers."

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