Asia Pacific Breweries ends exclusive beer sales practice in Singapore

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.