Beer prices to tumble

Beer prices are set to fall after a landmark court case.

A publican won the ground-breaking court battle against his former landlord, a major pub company.

Appeal Court judges ruled that the publican was illegally forced to take his beer from a single brewer at a high price.

He was awarded £250,000 in damages in a case that has huge implications for the British pub industry.

The decision could free thousands of "tied" pubs from restrictive agreements that force them to charge customers more for their pints.

Bernie Crehan, who ran two pubs in Staines, first bought the case against the company 12 years ago

About 600 other publicans are now set to be awarded up to £100 million damages by the company concerned, Inntrepreneur, which is owned by the Japanese bank Nomura. Julian Maitland Walker, the lawyer who brought the case on behalf of Mr Crehan, said the former publican went out of business with personal losses of more than £100,000 as a direct result of the tie.

The agreement forced him to sell beer at about £1.50 a pint in the early Nineties when his "free house" competitors were able to charge only £1 to £1.20.

Michelle Perrett, of the Publican newspaper, said: "This ruling will allow pubs to buy beer more cheaply from other sources and could bring the price of a pint of beer down."

The ruling is believed to be the first time that a British court has awarded damages over a breach of competition law.

"It is probably the most important decision in European law for the last 10 years," Mr Walker said. In a statement, Mr Crehan said: "We're all absolutely delighted with this ground-breaking decision. It's been a long time coming - but the wait's been worth it."

The landmark ruling comes a week after MPs launched a formal investigation into how the relationship between landlords and tenants has affected beer prices.

There has been growing concern that concentration of thousands of pubs in the ownership of a handful of huge chains could work against consumers.

Beer prices have risen ahead of inflation over the past 20 years. The average price of a pint of lager in London is £2.41, but prices can go as high as £3 in the West End.