Beer campaigners say they are ‘increasingly concerned’ by merger
CAMRA SAYS SMALLER BREWERS STRUGGLE TO ACCESS PUB MARKET DOMINATED BY GLOBAL OWNERS, SUPPLIERS AND DISTRIBUTORS
REAL ale group CAMRA says it is “increasingly concerned” about the impact on consumer choice after a proposed deal between brewers Marston’s and Carlsberg was giving the go-ahead.
The Campaign for Real Ale’s national chairman Nik Antona, has issued a statement after the Competition and Markets Authority (CMA) gave the green light for the major joint venture between Pedigree maker Marston’s, which has its brewery in Shobnall Road, Burton, and Carlsberg following the investigation. The move would see the two brewers merge into the Carlsberg Marston’s Brewing Company.
Both companies are large brewers of beer and cider, as well as offering related services, such as the wholesale supply of their own and other producers’ drinks to pubs and restaurants.
The decision by the CMA follows an investigation into several possible ways in which the deal might harm competition in the supply of beer and cider in the UK after fears were raised, a spokesman for the organisation said.
CAMRA, an independent group which promotes traditional British pubs and drinks, had called for the investigation to be carried out by the CMA, which is a Government body.
Mr Antona said after the findings were released: “We’re increasingly concerned with the dominance of global brewing brands in the UK beer market and the impact this has on consumer choice.
“This joint venture is the latest in a series of merger and acquisition activity which has seen many styles and brands disappear since the early 2000s.
“While we have seen an increase in the number of small brewers producing some great and varied beers, these brewers account for less than six per cent of the total market and are therefore unable to provide effective competition.
“Many of these smaller brands cannot access the pub market due to the dominance of supply and distribution agreements operated by pub companies and global suppliers.
“In addition, two small brewers are now closing every week due to ongoing restrictions on the sector and a lack of proper support package.
“On top of this, the Government is planning changes to Small Brewers Relief that will increase the amount of tax some small brewers pay.
“We are grateful to the CMA for en engaging with us an and listening to our con concerns about the join joint venture and will continue to raise our concerns about com competition issues in the s sector with them. “W “We believe that the UK b beer market needs constant monitoring by the competition authorities.”
After looking at all of the possibilities, the CMA has decided that it does not have concerns over competition as independent brewers would still have access to other pubs.
Tomasz Blawat, managing director of Carlsberg UK, said: “We welcome the decision by the Competition and Markets Authority and wish to put on record our thanks to them for the thoroughness of their work in recent months.
“The joint venture between Carlsberg UK and Marston’s PLC to form the Carlsberg Marston’s Brewing Company, unites two historic brewers with shared values, history and heritage, to create a company with a sustainable future in UK brewing.
“The decision is a significant milestone in the formation of the new company, which we believe will create significant value for employees, customers and beer drinkers in the UK, and we look forward to moving to the next stage on this journey.”
The two breweries will be the only two stakeholders in the new firm, with current Carlsberg UK managing director Tomasz Blawat to be its chief executive officer.
Marston’s, which makes well regarded beers such as Pedigree and 61 Deep, will take the remaining 40 per cent and also receive a cash payment of up to £273 million.
Marston’s operates six breweries producing more than 60 ales at its sites in Burton, Oxfordshire (Wychwood & Brakspear), Cumbria (Jennings), Hampshire (Ringwood), Bedford (Eagle) and the West Midlands (Banks’s), it says on its website.
The brewing giant also owns a significant number of pubs across the UK, including across Burton and South Derbyshire.