Skip to content
Food

Asia Pacific Breweries ends exclusive beer sales practice in Singapore

By Minjun ParkSingapore
1 min read
Asia Pacific Breweries Singapore at Beerfest Asia 2013 P0105
Asia Pacific Breweries Singapore at Beerfest Asia 2013 P0105
In this article (4)
The company has given CCS a voluntary commitment to cease its outlet exclusivity practice.

Going forward, APBS will not impose outlet-exclusivity conditions in its supply of draught beer contracts to retailers.

The change in APBS’s business practices will be applicable to all draught beer contracts entered into with retailers on and after December 28, including new and renewal contracts. APBS will also be required to provide CCS with documents to show that these changes have taken effect.

“The removal of these exclusive business practices will allow beer suppliers to compete on merit in offering their draught beers to retail outlets,” CCA chief executive Toh Han Li said.

“This will allow retailers to stock a greater variety of draught beers, leading to a more vibrant market with more choices for consumers, as well as opportunities for existing suppliers and new entrants including microbreweries and craft beer suppliers.”

Acting on complaints, CCS had investigated APBS in relation to its practice of supplying draught beer to retail outlets solely on an exclusive basis.

Under the competition law in Singapore, a dominant firm is prohibited from preventing or impeding its competitors from competing effectively through exclusive business practices.

CCS says APBS’s outlet-exclusivity practice had prevented retail outlets from selling draught beers from competing suppliers and restricted the choices of draught beers available to retailers and consumers.

Under the probe, CCS obtained information on the beer market in Singapore from retailers and beer suppliers. CCS also commissioned a market survey to gather information on market practices.

CCS has ceased its investigation but will continue to monitor market practices.

Questions & Answers

Q.

What prompted the Competition Commission of Singapore to investigate Asia Pacific Breweries (Singapore)?

A.

The investigation was initiated after the Competition Commission of Singapore received complaints regarding APBS's practice of supplying draught beer to retail outlets exclusively. This practice was seen as potentially restricting competition.

Q.

When will the changes to APBS’s draught beer supply contracts come into effect for retailers?

A.

The new business practices will apply to all draught beer contracts entered into with retailers on or after December 28. This includes both brand-new agreements and the renewal of existing contracts.

Q.

What impact does the Competition Commission of Singapore expect these changes to have on the market?

A.

CCS anticipates a more vibrant market with increased choice for consumers and retailers. It expects greater competition among suppliers, allowing more opportunities for microbreweries and craft beer suppliers to enter the market.

Reader pulse

What will be the primary impact on retailers?

19,426 votes so far

Weekly Briefing

Asia's retail intelligence, in your inbox

Tuesday, Thursday and a Saturday Weekly Wrap: the retail stories, numbers and moves that mattered across Asia. Nothing else, and you can unsubscribe in one click.

  • Top industry moves and market shifts
  • Weekly data-driven analysis from across Asia
  • Tuesday, Thursday and the Saturday Weekly Wrap

Read by retail operators, investors and brand teams across Asia.

Protected by a quick human check. No spam, ever. Unsubscribe in one click.

SecureGDPR ready