UK watchdog: Takeover could spark beer price rise

The British competition watchdog today said the planned takeover by two brewers of the beer dispensing equipment arm of US brewer Coors could spark higher beer prices.

The UK's Competition Commission said the plan by Serviced Dispense Equipment (SDE) - a joint venture between Scottish Courage and Carlsberg UK – to buy Coors’ technical service operation would substantially cut competition in the market for draught beer dispensing equipment and related services.

A commission spokesman said the deal would give SDE close to 75% of the market and could lead to increased beer prices.

“You would expect that a company in that position may well exploit the cost of the equipment and servicing, which would likely feed through to the cost of the product, ie. The price of a pint,” he said.

Scottish Courage encompasses Scottish & Newcastle’s beer businesses in the UK and Ireland.