CANADA: Labatt and Molson face legal fight for "abusing dominant position"

Commercial practices by Labatt Breweries, Molson Canada and Oland Breweries are being investigated by Canada's Federal Competition Board, after a complaint was filed by seven of Quebec's microbreweries in the Quebec Superior Court.

The Competition Board will collect evidence from the large breweries and retailers to check if any abuses of a dominant position were made and if their practices were anti-competitive.

Peter McAuslan, president of McAuslan Breweries, told just-drinks.com: "We want to see a fair and regulated regime for breweries to allow consumers to have a better selection in product."

Laurent-Xavier Gilbert, vice president of Unibroue said the past two years has seen the little guy suffer for two reasons. Firstly the Societe des Alcools de Quebec (SAQ) - the provincial liquor monopoly - gave permission two years ago for Labatt and Molson to sell imported beers in supermarkets. This may have pushed out the local microbreweries from prime positions within shelf and fridge space.

Secondly, the consolidation of the supermarket chains in the province has affected the beer market by having one or two buyers controlling the distribution of shelf or fridge space throughout the province.

Mr Gilbert said: "We've had several complaints from our consumers saying they can't find our beer anymore. It is the common desire of the smaller breweries to regain what we once had. We want our space back."

In May of 2000, Molson and Labatt were fined C$1.2 million for illegal trade practices by the Alberta Liquor and Gaming Commission under similar circumstances.