Tied houses: Why they are so common and why breweries charge them high prices for their beer

Abstract

Pubs with exclusivity contracts with breweries or drinks distributors are known as "tied houses." Often, the building in which the pub is located is property of the brewery or is being rented by the brewery from a third party on behalf of the publican. In other cases, the brewery has made financial or material investments in the pub, e.g. by giving loans or providing furniture. In return, publicans agree to exclusively buy products from the brewery.1