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Beer drinkers are 'victims' of brewer-based monopolies: report

Monday 14 January 2013

The Dutch competition authority should ensure beer companies can no longer stop cafe and bar owners from selling beer from their competitors, according to a new report.

By allowing drinkers to choose between different breweries, competition will increase and prices will come down, the report by the economic research institute SEO, says.

Some 75% of the cafe beer market is tied to individual breweries because they impose exclusivity deals on cafe owners in return for loans or because they own the property or its fixtures and fittings, the report says.

But the impact of this on bar owners is more expensive overheads, lower returns on their investment and a high bankruptcy rate.

Industry

The SEO report echoes similar comments made by the hospitality industry body Horeca Nederland last summer.

It also called on competition authority NMa to take action against the big beer breweries because the contracts between brewers and cafe owners leave little room for a healthy market.

Each year a quarter of cafe owners think about moving to another brewery but only 2.4% actually take the step, the industry body said.

© DutchNews.nl



 

Readers' Comments

Isn't it debatable whether beer should be cheap?

By pepe | 14 January 2013 2:13 PM

One could argue that beer should or shouldn't be cheap.

But if the high price is only lining the pockets of the brewers for no added value other than their own cartel forming, then no.

If the high price is due to extra taxes that fund the prevention of alcohol related problems and provide treatments, then yes.

By H. | 14 January 2013 4:40 PM

How much tax on a glass of beer?

So are we being 'milked' on the retail price of beer?

By The visitor | 14 January 2013 11:03 PM

I agree that it should be changed. At Schiphol, Heineken has the monopoly. No other beers are to be found. This is annoying because I don't like Heineken or Amstel etc.

By Rich | 15 January 2013 3:47 PM

 
 
 
 
 
 
 
 
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