Mark Anthony Group has been penalised by the Canadian regulator for “illegally” paying retail stores to promote its alcoholic beverages and increase sales.
In a statement on 25 June, the Alcohol and Gaming Commission of Ontario (AGCO) said it had imposed a “monetary penalty” of C$40,000 ($29,242) on the wine maker over “unfairly promoting its products”.
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The decision follows a probe launched by AGCO in November into concerns surrounding unfair promotional practices by Mark Anthony Wines in Ontario.
The investigation revealed that the company, through a marketing firm, paid over 130 retailers up to C$225 per store to display posters promoting its brands, according to AGCO.
It also claimed retailers were encouraged to purchase and stock higher volumes of Mark Anthony products featured in the promotions.
Just Drinks has asked Mark Anthony Group for comment on the fine and the claims made by the AGCO.
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By GlobalDataThe regulator said that the Liquor Licence and Control Act, 2019 (LLCA) and its regulations prohibit licensees and their representatives from providing financial incentives to retailers to boost the sales or availability of an alcohol brand.
The AGCO said such practices result in an “unfair advantage”, favouring large multinational corporations with more financial resources, while disadvantaging smaller local and independent companies.
The regulator added such actions unfairly influence which products are stocked and promoted, potentially limiting consumer choice and compromising the transparency essential for a “competitive” market.
Operators served with an Order of Monetary Penalty (OMP) by the AGCO Registrar have the right to appeal the decision to the Licence Appeal Tribunal (LAT), an adjudicative tribunal that operates independently of the AGCO and is part of Tribunals Ontario.
Headquartered in Vancouver, Canada, Mark Anthony Group is a private beverage conglomerate founded in 1972 by Anthony von Mandl. It manages a portfolio of businesses in the alcohol beverage sector, including the production and distribution of wines, spirits and RTDs.
The group encompasses multiple divisions, including wine-and-spirits distribution arm Mark Anthony Wine & Spirits and RTDs-focused Mark Anthony Brands.
