UK Brewing Industry Characteristics - Term Paper Example

The instantaneous consequence was dramatic for the large Brewers (see Preece, Steven & Steven, 1999; Preece, Steven, and Steven, 2002; Millns, 1998; Gourvish and Wilson, 1994). They had to decide whether to stay in brewing, their principal business or to dispose of large numbers of their pubs. Bass, for instance, decided at the time to stay in brewing and consequently had to reduce its estate by 2680 pubs in less than two years. The other national brewers also decided to put on the market thousands of pubs.

All of these were bought by individuals, small businesses and large pub retailing chains, and it was during this time that companies such as Enterprise Inns and Wetherspoons were created. Pub retailing surfaced as a division in its own right. On the other hand, not all brewers decided to stay in brewing and some of the breweries were sold.Some of the brewers took the opportunity to think again about contracts and conditions of service as they reorganized their businesses. Bass, for instance, developed “The New Deal”, a highly individual contract with better pay combined with the derecognition of trade unions for collective bargaining objectives, even if the unions were allowed to hold on to representational rights.

Derecognition was easily attained for union power had been substantially diminished in the sector by sub-contracting distribution. The old dominant alliance between general union draymen and white-collar staff had lost its industrial sway. At a time of great change in ways of working, pub managers and their staff no longer had a collective voice at a negotiating table.Times were tumultuous but the companies focused on in-company change as they adapted to their new structures after the 1992 deadline.

Brewers and pub retailers reviewed their strategies for the future during the short period of consolidation in the mid to late 1990s. This relative lull on the industry front was followed by another episode of intense activity and multifaceted maneuvering as the major players realigned themselves in keeping with where they now saw their primary business.