MEXICO: SABMiller attacks beer market ruling
SABMiller's Mexican subsidiary has been left unimpressed by the outcome
SABMiller subsidiary, Miller Trading Company, has hit out at Mexico's competition authorities arguing its settlement with two rival brewers does not go far enough and still leaves the country's beer market “anti-competitive”.
The Mexican Federal Trade Commission (Comisión Federal de Competencia - CFC) said yesterday (11 July) it had approved a range of commitments made by market leaders Heineken-owned Cuauhtémoc Moctezuma and Anheuser-Busch InBev-owned Grupo Modelo, following a three-year investigation. The review was triggered by SABMiller's subsidiary lodging a complaint of abuse in Mexico's beer market in 2010.
But in a strongly-worded reaction, Miller Trading Company attacked yesterday's announcement and hinted it may take further action.
In a statement, it said that “the CFC and the two dominant brewers did not go far enough to materially change the conditions for access to the beer market and for real competition”.
It added: “Given that some retailers are very large and many others very small, it will be possible to restrict beer sales to a much greater extent than reflected in the exclusivity commitments, and therefore the existing anti-competitive situation will be allowed to persist to a material extent."
The company also voiced surprise that smaller brewers would now be allowed access to “exclusive on-trade accounts”, but that “the dominant brewers could continue to block Miller Trading Company and other importers from these accounts”.
Armando Valenzuela, Miller Trading Company's general director, said: "This settlement demonstrates that both parties recognise that their exclusivities constitute anti-competitive practices with negative effect on both consumers and competitors.
“Unfortunately, the CFC found it appropriate to still allow exclusivities and, surprisingly, allowed continued discrimination against Miller’s brands. A complete opening of the market in Mexico would have been better for consumers, retailers, importers, other local brewers and investors."
He added: “We are analysing the settlement resolution and will determine our appropriate response in due course."
To see just-drinks' full coverage of the legal wrangling in Mexico, click here.
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