E-Malt.com News article: United Kingdom: Greene King faces opposition over anti-competitive beer prices

British brewing and pubs group Greene King Plc is facing opposition from a group of pub tenants over anti-competitive beer prices. Up to 90 Greene King tenants said it is overcharging them for beer and they will report it to the country's competition watchdog.

According to Reuters, pub landlord Meeko Oates, who runs the Shoulder of Mutton pub in central England, which was sold by Greene King to another pub group in March, said he represented a group of 91 Greene King tenants who are unhappy about beer prices.

Competition lawyer Rupert Croft, who represents the group, told Reuters on Friday: "From an initial view, there may have been an infringement of competition law, and we have been instructed to investigate that."

"With Greene King, the argument is that they are abusing a dominant position," he added. David Elliott, managing director of Greene King Pub Partners, said he had received no complaints from the group of tenants and was happy to discuss any issues.

Greene King owns some pubs that it manages itself and others that are rented out to tenants. "Last year, we were paying 196 pounds ($364) for 22 gallons of the biggest selling beer Fosters, but they were selling it to their own managed pubs for 84 pounds," said Oates. "It's an unfair playing field. The managed pubs are undercutting everyone." He said he hoped to report Greene King to the Office of Fair Trading.

Greene King shares were broadly flat at 1335 GMT at 1,187 pence, valuing the company at around 860 million pounds.


14 May, 2005