Asia Pacific Breweries Singapore ends exclusive business practices after investigation

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.