Tied house arrangement
German: Brauereibindung Also known as: Bierbindung
A contractual tie of a hospitality business to a brewery as its beer supplier.
A tied arrangement means a publican must obtain all or most of the beer from a particular brewery. In return the brewery supports the business, for example with draught equipment, furnishing, subsidies or favourable terms.
Historically it is widespread, especially for leased pubs. The tie results from the beer purchase agreement and is limited in time. Tenants and publicans are advised to check the contract terms carefully. Over time, independent pubs without ties have spread in many regions, offering beer from several suppliers.
Related terms
Beverage supply contract (beer purchase agreement)TermsRebate
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