Brewers are increasingly in competition with other independent brewers, but not with larger brewers. Beer duty collection arrangements require independent brewers to advance thousands of pounds of loans to the Treasury every month which ties up capital and incurs costs. Beer duty is a hugely regressive tax. I ndependent brewers are excluded from areas of high population density and per capita wealth. Wholesale prices are falling whilst other costs are rising.
Independent brewers have limited access to investment finance.
Independent brewers are affected disproportionately by external costs such as fuel price rises and the Climate Change Levy. I ncreasingly industry power is concentrated in an oligopolistic distribution system which favours large volumes of small numbers of brands. The OFT report on the review of the Beer Orders . The Supply of Beer . December 2000, severally and repeatedly supports our case.