ABSTRACT
By investigating surplus and risk distribution in the British brewing industry, this article shows that risk and risk transfer are important dimensions of vertical supply chain relationships. A comparative financial analysis shows the effects of models of vertical ownership before and after the break-up of producer controlled tenanted estates and the strategy and performance of pub-owning companies. Contrasting mechanisms for controlling the capture of surplus and division of risk are evaluated. The article complements prior studies that have concentrated on the brewers by assessing winners and losers amongst pub owning companies and tenants in different models of vertical organisation and how they might be effectively regulated.
