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Prices and Choice

In: Intervention in the Modern UK Brewing Industry

Author

Listed:
  • John Spicer
  • Chris Thurman
  • John Walters
  • Simon Ward

Abstract

As we have seen, the Price Commission found that between June 1974 and June 1977 ex-duty beer prices, at both wholesale and retail level, had fallen in real terms; and between December 1977 and May 1979 the Commission found little to object to in the price increases proposed by Allied Breweries, Bass Charrington and Whitbread. The first half of the eighties, however, following the abolition of price controls by the newly elected Conservative Government, saw beer prices — at least in the pub trade — rising significantly faster than retail prices generally. Thus the November 1985 Monopolies and Mergers Commission (MMC) Report into the proposed merger between Scottish & Newcastle and Matthew Brown showed that the average price of non-premium bitter in the public bar, excluding duty and Value Added Tax (VAT), had risen by 81 per cent between July 1979 and July 1985, against an increase of 64 per cent in the Retail Prices Index (RPI),1 a rise in real terms over six years of just over 10 per cent.

Suggested Citation

  • John Spicer & Chris Thurman & John Walters & Simon Ward, 2012. "Prices and Choice," Palgrave Macmillan Books, in: Intervention in the Modern UK Brewing Industry, chapter 16, pages 184-194, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-35558-3_16
    DOI: 10.1057/9780230355583_16
    as

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