Tied house

[4] Finally, a publican may finance the purchase of a pub with soft loans (usually a mortgage) from a brewer and be required to buy the beer from it in return.

This was a form of monopoly opposed by the Campaign for Real Ale, especially when the brewer forced poor beer onto the market from the lack of competition from better breweries.

[citation needed] From 1989 to 2003, some tied pubs in the UK were legally permitted to stock at least one guest beer from another brewery to give greater choice to drinkers.

[7] A proposal to loosen the restrictions was put forward by the government of BC in 2010, in response to these changes, but regulation to implement the law was still under debate in 2012.

[8] In the late 19th and early 20th centuries, saloons across America were often tied houses, with breweries having exclusive contracts with drinking establishments, including helping business start-ups.

These statutes sought to forestall the generation of such evils and excesses as intemperance and disorderly marketing conditions that had plagued the public and the alcoholic beverage industry prior to prohibition .

By enacting prohibitions against "tied-house" arrangements, state legislatures aimed to prevent two particular dangers: the ability and potentiality of large firms to dominate local markets through vertical and horizontal integration .

The principal method utilized by state legislatures to avoid these antisocial developments was the establishment of a triple-tiered distribution and licensing scheme .

In the era when most tied-house statutes were enacted, state legislatures confronted an inability on the part of small retailers to cope with pressures exerted by larger manufacturing or wholesale interests .

[10]In recent years, several major alcoholic beverage makers[clarification needed] have been successful in securing very specific exceptions to California's strict tied-house laws.