Press Release

22 December 2009

EDWIN COE LEADS UK'S BEER DRINKERS' CHALLENGE TO THE OFT

The Campaign for Real Ale (CAMRA) has today launched an appeal to the Competition Appeal Tribunal against the Office of Fair Trading's response of 22 October to its super-complaint under the Enterprise Act, submitted in July this year. CAMRA's complaint centred on the need to reform beer tie arrangements to prevent large companies exploiting tie arrangements that prevent tied publicans from buying beer on the open market at fair prices.

Class action practice, Edwin Coe, is leading the appeal on behalf of CAMRA.

David Greene, litigation partner at Edwin Coe said: "The Business and Enterprise Select Committee, which reported earlier this year, clearly saw problems in the relationship between the pub companies and the lessees, with thousands of pubs closing each year, and were critical of the OFT. The super-complaint was launched by CAMRA for consumers on the back of the Select Committee report. Despite the words of the Select Committee ringing in their ear, the OFT rejected the complaint and has declined to investigate further."

"The challenge goes to the core of the process of a super-complaint and the OFT's handing of it. There are many unresolved issues that will have to be considered by the Competition Appeal Tribunal."

"We made a similar challenge in relation to the grocery retail trade* when the OFT refused to investigate, and under challenge by us on behalf of the thousands of corner shop owners, the OFT changed its mind."

ENDS

NOTES:

*Edwin Coe acted for 34,000 members of the Association of Convenience Stores in its successful challenge regarding the OFT's decision not to refer the grocery retail trade to the Competition Commission. This led to the Grocery Inquiry recently completed.

Edwin Coe is a leading 'class action' firm and has acted for many groups including shareholders in Railtrack, Northern Rock, Langbar, London cab drivers, British property owners in Spain who are the victims of local planning frauds, and British time- share owners.

CAMRA (the Campaign for Real Ale) is an independent consumer organisation which campaigns for real ale, real pubs and consumer rights. CAMRA currently has over 107,000 consumer members.

CAMRA's super-complaint, 'A Fair Share for the Consumer', can be viewed at www.camra.org.uk/supercomplaint The complaint centred on the need to reform beer tie arrangements to prevent large companies exploiting tie arrangements that prevent tied publicans from buying beer on the open market at fair prices. CAMRA argued that the wholesale prices paid by tied publicans are considerably higher, around £20,000 per year for an average pub, than would prevail in a competitive market. The lack of competition, particularly in areas dominated by tied pub companies, mean that consumers pay higher prices, and suffer a reduced quality of experience and a restricted range of products. CAMRA has calculated that if beer prices had only risen in line with inflation since 1990 then collectively consumers would be better off by £2.5 billion a year.

For further information on this news release, please contact:

Edwin Coe, 2 Stone Buildings, Lincoln’s Inn, London WC2A 3TH Tel: 020 7691 4000 www.edwincoe.com