Heineken Denounces Ambev, And Breweries Are Prohibited From Signing Exclusive Contracts With Bars And Restaurants Until The End Of The World Cup; Competition Intensifies Between The Major Alcoholic Beverage Suppliers

Written by Flavia Marinho

Published on 04/10/2022 at 15:54

Updated on 04/10/2022 at 22:06

Ambev e Heineken – Imagem CPG

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Dispute Begins Between Giant Alcoholic Beverage Producers Heineken and Ambev in the Brazilian Market

The Cade counselor and case reporter, Gustavo Augusto, granted a preventive measure at the end of September that prohibits, until the end of the World Cup in Qatar, the giant alcoholic beverage producers Ambev and Heineken from signing new exclusivity contracts, related to beer sales in bars, restaurants, and nightclubs.

The referred exclusivity contracts are business arrangements through which Ambev, owner of the beers Antarctica, Brahma, Budweiser, Skol, and Stella Artois, promises to pay and give discounts for commercial points not to sell their competitors’ beer brands.

Petrópolis (Itaipava) and Estrella Galicia Were Also Harmed

Thus, Heineken appealed to Cade claiming that there was an infringement of competition law. Grupo Petrópolis (Itaipava) and Estrella Galicia also claimed to have suffered the same harm as the German brewery.

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Violation of the Rules Will Result in a Fine of R$ 1 Million per Day and Suspension of Breweries’ Contracts

Heineken and Ambev will have 30 days to present the list of establishments that have exclusivity contracts and must provide quarterly reports showing the total for each location. Additionally, due to being considered abusive, the clauses that guaranteed Ambev exclusivity rights over future branches of the served establishments have been suspended.

In case of non-compliance, a fine of R$ 1 million per day will be applied, in addition to the possibility of suspending the exclusivity contracts for up to five years.

The measure will remain in effect until the administrative process is concluded, or until a new decision from the Cade court.

Heineken Denounces Ambev, And Breweries Are Prohibited From Signing Exclusive Contracts With Bars And Restaurants Until The End Of The World Cup; Competition Intensifies Between The Major Alcoholic Beverage Suppliers

Dispute Begins Between Giant Alcoholic Beverage Producers Heineken and Ambev in the Brazilian Market

Petrópolis (Itaipava) and Estrella Galicia Were Also Harmed

Violation of the Rules Will Result in a Fine of R$ 1 Million per Day and Suspension of Breweries’ Contracts

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Heineken Denounces Ambev, And Breweries Are Prohibited From Signing Exclusive Contracts With Bars And Restaurants Until The End Of The World Cup; Competition Intensifies Between The Major Alcoholic Beverage Suppliers

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