Commitments from two breweries open up better competition for the supply of strong beer

This means that the competition issues suspected to have arisen from the breweries' contract practices have now been addressed. The Swedish Competition Authority therefore accepts the commitments and closes the investigation into suspected violations of the prohibition of anticompetitive agreements.

“The commitments by Carlsberg and Spendrups to change the way they sign agreements mean that their customers will now have greater opportunities to purchase strong beer from other suppliers alongside their main supplier. This will increase competition from other breweries and improve the conditions for businesses in the hotel, restaurant, and cafe sectors to expand their offer of strong beer to consumers," says Rikard Jermsten, Director General of the Swedish Competition Authority.

After receiving a complaint regarding the two breweries contractual arrangements for the sale of strong beer to hotels, restaurants, and cafes, the Swedish Competition Authority initiated an investigation. The concern was that the companies' main supplier agreements were in violation of competition regulations prohibiting anticompetitive agreements.

The Swedish Competition Authority’s preliminary conclusion is that Carlsberg's and Spendrups' requirements for customers' individual volume commitments, and other conditions that encouraged customers to concentrate their purchases to a large extent with their main supplier, collectively had an anticompetitive effect. These conditions appeared to lead, among other things, to a significant portion of customers on the market choosing to limit their purchases from other suppliers of strong beer in order not to breach their volume commitment and not to risk sanctions from their main supplier.

Carlsberg and Spendrups have now committed to set customers' individual volume commitments in a way that allows customers to take in strong beer from other suppliers. Customers who do not meet their volume commitments will not risk such severe sanctions. The commitments also make it easier for customers who borrow draught beer equipment from Carlsberg or Spendrups to sell draught beer from competitors. This means that more breweries can have significantly improved opportunities to supply strong beer to Carlsberg's and Spendrups' customers, thereby increasing consumer choice.

Carlsberg's and Spendrups' commitments are valid for six years. The decisions are associated with a penalty payment that a court can impose at the request of the Swedish Competition Authority if the companies do not comply with their commitments.