Industry background: Development of the industry

A number of trends have changed the landscape of the UK pub industry during recent years.

 

Significant disposals of estates by the major brewers, as a direct result of the Beer Orders (see "Regulation" below), have led to the emergence of a number of independent pub groups. These pub groups, often supported by financial investors, have accumulated significant portfolios of leased and tenanted pubs.

This trend of disposing of pub estates has continued in excess of the requirements of the Beer Orders to allow brewers to focus activities on developing their managed estates or to leave the pub industry altogether. There has been a significant amount of merger and acquisition activity throughout recent years as independent pub companies have consolidated. This trend appears to be continuing, even though the Beer Orders have now been revoked, as further leased and tenanted estates or independent outlets become available.