Beer Orders
From The Oxford Companion to Beer
were introduced in the UK following a report in 1989 by the Monopolies and Mergers Commission (a UK government agency) on the supply of beer. They sought to widen consumer choice in pubs by restricting the number of pubs owned by the six largest brewery companies (Allied, Bass, Grand Metropolitan, Imperial, Scottish and Newcastle, and Whitbread) that accounted for 75% of British beer production, and to allow their tenants to sell one brand of cask-conditioned beer not produced by them. This was known as the guest beer provision. They also removed the tie on non-beer drinks. The orders were intended to increase competition in brewing, wholesaling, and retailing.
Various amalgamations took place in an attempt to bypass the effect of the orders and several large pub-owning but non-brewing companies, known as pubcos, such as Punch Group, Normura, and Enterprise Inns were created as well as many smaller ones. Alongside this came a significant increase in the number of small independent breweries created to take advantage of the freeing up of the retail market.
After 10 years the Office of Fair Trading made an examination to determine whether the orders were still relevant and declared against their usefulness. None of the so-called big six brewing companies existed in their original form and consequently most of the orders were repealed. The government view was that the brewing industry had markedly changed and the orders had served their purpose. As they stood they were pointless regulations. The beer orders were finally revoked in 2003.
This definition is from The Oxford Companion to Beer, edited by Garrett Oliver. © Oxford University Press 2012.