Asia Pacific Breweries Singapore ends exclusive business practices after investigation
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Asia Pacific Breweries Singapore (APBS) has been found to have prevented retail outlets from selling draught beers from competing suppliers and restricted the choices of these beers available to retailers and consumers, the Competition Commission Singapore (CCS) said in a press statement.
According to CCS, a dominant firm is prohibited from preventing or impeding its competitors from competing effectively through exclusive business practices.
APBS has since provided CCS with with a voluntary commitment to cease its outlet-exclusivity practice.
The change in APBS’s business practices will be applicable to all draught beer contracts entered into with retailers on and after Dec 28, including new and renewal contracts.
APBS will also be required to provide CCS with documents to show that these changes have taken effect.
CCS said that it will continue to monitor market practices and reserves the right to investigate any breach of the commitment or any other anti-competitive practices by APBS.
Mr Toh Han Li, Chief Executive of CCS, said: “The removal of these exclusive business practices will allow beer suppliers to compete on merit in offering their draught beers to retail outlets.
“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.”
APBS responded in a statement today, saying that it notes the CCS announcement on the closure of its investigation, with no finding of liability.
It added that there is a a wide range of over 300 beer brands available in various forms in Singapore.
“Draught exclusivity arrangements are not uncommon in the beer industry and competition among suppliers is intense. Retailers always have and continue to have a choice of beer supplier in Singapore,” said Mitchell Leow, head of corporate relations for APBS.
Questions & Answers
Q.What specific business practices did Asia Pacific Breweries Singapore engage in that led to the investigation?
What specific business practices did Asia Pacific Breweries Singapore engage in that led to the investigation?
APBS was found to have prevented retail outlets from selling draught beers from competing suppliers. They also restricted the choices of these beers available to retailers and consumers through exclusive practices.
Q.When will the changes to APBS's draught beer contracts take effect?
When will the changes to APBS's draught beer contracts take effect?
The changes in APBS’s business practices will apply to all draught beer contracts entered into with retailers on and after December 28. This includes both new agreements and renewal contracts.
Q.What is the Competition Commission Singapore's view on the impact of these changes on the market?
What is the Competition Commission Singapore's view on the impact of these changes on the market?
The CCS believes the changes will allow beer suppliers to compete on merit, leading to retailers stocking more variety. This should create a more vibrant market with more consumer choices.
Q.How did APBS respond to the Competition Commission Singapore's announcement regarding the investigation?
How did APBS respond to the Competition Commission Singapore's announcement regarding the investigation?
APBS noted the closure of the investigation, highlighting that there was no finding of liability. They also stated that draught exclusivity arrangements are common and competition among suppliers is intense.
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