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CHILE: Injunction halts Coke's plans to terminate Chile bottling franchise

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An injunction by Chile's antimonopoly commission has blocked Coca-Cola from halting the Canada Dry and Crush bottling franchises held by Chile's Compania Cervecerias Unidas SA.

Under an agreement with Cadbury Schweppes, CCU's Emobtelladora Chillenas Unidas SA unit were to bottle Canada Dry and Crush beverages in Chile until 2004, but according to reports, when Coca Cola bought Cadbury Schweppes last year it informed the CCU unit its bottling agreement would be terminated in 60 days.

Embobtelladora is also a franchisee of Pepsico and both CCU and Pepsi Cola claim Coca-Cola's decision to terminate the agreement in Chile is a threat to free competition in the soft drinks industry.

An injunction has been in force since January and has now been extended by the antimonopoly commission for 180 days while the investigation continues.

Companies: Cadbury, PepsiCo

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