MEXICO: Court agrees to hear SABMiller appeal

By | 7 August 2013

The SABMiller subsidiary is fighting the settlement

The SABMiller subsidiary is fighting the settlement

Mexico's Federal Court has agreed to consider Miller Trading Company's appeal over a competition ruling on the country's beer market, according to the brewer. 

The case centres on Miller's allegations of anti-competitive behaviour by Mexico's market leaders - Heineken-owned Cuauhtémoc Moctezuma and Grupo Modelo. After a three-year probe, the Mexican Federal Trade Commission last month approved commitments made by the two brewers

But SABMiller subsidiary, Miller Trading Company, lodged an appeal against the ruling and said today (7 August) Mexico's Federal District Court has agreed to examine its arguments. 

In a statement, the company claimed: "The limited impact of the settlement commitments will result in the continued suppression of free competition and severely restrict consumer choice."

Armando Valenzuela, Miller Trading Company's Mexico MD added: “This appeal is an important first step in the legal process that will hopefully open the Mexican beer market to genuine competition and give Mexican consumers the variety and choice that is available in other markets." 

Yesterday, SABMiller's US JV with Molson Coors, MillerCoors, reported a single-digit drop in first-half profits, as sales were flat and volumes down.

Expert analysis

The Future of Retailing in Mexico to 2016

Future forecasts and historic market data can improve market and strategic planning- Understand which channels and products will be the major winners and losers in the coming years- Know the share of sales between different products in your key channels and how this will develop- Assess the impact of economic recession and recovery on market growth

Sectors: Beer & cider

Companies: SABMiller, Heineken, Grupo Modelo

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