News

SINGAPORE: Coca-Cola Singapore acts after competition probe

Most popular

Should Campari Group be renamed Aperol Group?

Campari Group's Aperol Q3 bonanza - Comment

just-drinks' M&A database - Oct 18

just-drinks speaks to A-B InBev CEO Carlos Brito

MORE

Coca-Cola Singapore has agreed to amend its supply contracts to remove “potentially anti-competitive” elements after an investigation by the country's competition authorities.

//i2.aroq.com/1/singapore2.jpg

The Competiton Commission of Singapore said late last week that it has dropped its review of the company after it agreed to comply with a number of conditions. However, the commission said it will continue to monitor the soft drinks market.

The authority launched its investigation last March after a complaint that Coca-Cola Singapore had “incorporated restrictive provisions in its supply agreements with on-premise retailers, such as exclusivity conditions and conditional rebates”.

The company has subsequently agreed to: 

  • Not impose any exclusivity restrictions on its on-premise retailers for Coca-Cola brands of non-alcoholic beverages, except in limited circumstances
  • Not require its on-premise retailers who wish to sell other brands of beverages to first negotiate with the company 
  • Not grant loyalty-inducing rebates that have the effect of inducing on-premise retailers to purchase exclusively - or almost exclusively - from Coca-Cola Singapore 
  • Allow its on-premise retailers to use up to 20% of the space in coolers provided by Coca-Cola to store other brands of beverages, when these retailers have no access to alternative cooling equipment on their premises.

The commission added: “In general, agreements which serve to prevent, restrict or distort competition are discouraged and may be illegal under the Competition Act. CCS encourages all businesses to proactively review their competition compliance practices to ensure their business conduct fully comply with the Competition Act.”


Related Content

Heineken to address UK competition fears over Punch Taverns deal

Heineken to address UK competition fears over Punch Taverns deal...

Who needs alcohol when Coca-Cola can have versatile cannabis? - Comment

Who needs alcohol when Coca-Cola can have versatile cannabis? - Comment...

SABMiller, Coca-Cola Co, Coca-Cola Sabco get South Africa okay for Africa merger

SABMiller, Coca-Cola Co, Coca-Cola Sabco get South Africa okay for Africa merger...

How can mineral water keep pace with its bottled water competition? - Comment

How can mineral water keep pace with its bottled water competition? - Comment...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?