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Authors:
Kevin Nield (Sheffield Hallam University); Gary Peacock (Sheffield Hallam University)
Published in:
1994
Length:
20 pages
Data source:
Published sources

Abstract

In 1989 the brewing industry was reformed by the Department of Trade and Industry, on the advice of the Monopolies and Mergers commission. The resultant legislation, ''The 1989 Beer Orders'', has since changed the structure of the UK brewing industry. The study documents: (1) Why the legislation was enforced, in regards to UK competition policy; (2) The effects the imposed legislation has had on the major brewing companies strategies and on smaller brewers; (3) The effect the legislation has had on licensees and retail estates. The study finally compares the outcome of the intervention with that of the attainment of competition. It concludes that due to inappropriate regulatory intervention there have been many unfavourable distortions to the industry; such as the further concentration of the beer production market, the loss of brewers, brands and public houses and the rise in the retail prices.

Topics

UK competition policy; UK brewing industry; Monopolies and Mergers commission investigations; The further concentration of a market due to regulatory intervention; Market distortions
Location:
Industry:
Size:
Employer of over 600,000 directly and 200,000 indirectly
Other setting(s):
1989-1994 (5 years)

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