PART 5 Guest beer agreements

20 Characteristics of a guest beer agreement
1 A guest beer agreement is an agreement that—
(a) allows a tied-pub tenant to—
(i) sell to the pub’s customers at a price of the tenant’s choosing, at least one beer chosen by the tenant (regardless of who produces it), and
(ii) change the chosen beer as frequently as the tenant wishes,
(b) allows the tenant to do those things without penalty, and
(c) satisfies the criteria specified in paragraph (2).
2 A guest beer agreement must—
(a) not relate to a brand of a beer of which either—
(i) more than 5,000 hectolitres was produced in the production year immediately preceding the production year in which the request date occurs, or
(ii) the brand of beer has not been in production for a full production year immediately preceding the production year in which the request date occurs and the producer reasonably estimates that more than 5,000 hectolitres will be produced in the production year in which the request date occurs,
(b) not vary the existing lease except—
(i) to the extent necessary to include the guest beer agreement, and
(ii) where a service equipment charge has been agreed by the parties, to provide for that charge,
(c) not penalise the tied-pub tenant in any way, including by requiring the tenant to cease selling any product,
(d) not restrict the tied-pub tenant from purchasing a guest beer from a person of the tenant’s choosing,
(e) not contain any restrictions on how a guest beer may be purchased, stored or sold (for example, in casks, kegs, bottles, cans).
3 This regulation does not require a service equipment charge to be included within a guest beer agreement.