160

News

Carlsberg in hot water over price fixing in India

Luke Roberts
December 11th, 2020


This article is more than 4 years old.

Competition authorities close in on three breweries in relation to the case

Carlsberg earned almost two billion kroner in Russia last year (photo: Pixabay)

Beer in India is no laughing matter, with sales in the country totalling over 40 billion kroner.

Of this, 88 percent of the market is accounted for by just three breweries: SABMiller, United Breweries, and Carlsberg.

Now, a report from the Indian competition authorities claims that, for eleven years, the three brewers implemented price agreements in full awareness of their illegality.

READ ALSO: Denmark’s organic exports set new record

Behind closed doors 
According to the report, the breweries used the All India Brewers Association (AIBA) as a platform to negotiate prices, as well as using e-mails and the WhatsApp messaging services to make agreements.

There were at least three cases uncovered where management noted that their plans must remain a secret.

“We must avoid being discovered,” the director of AIBA informed brewery managers in one email from 2016.

Best made plans … 
SABMiller was bought by AB Inbev in 2016 with the new owners discovering the price agreements in 2018. Upon the discovery, AB Inbev reported the case to the authorities.

AB Inbev and United Breweries told Reuters that they “take competition law very seriously” and therefore will “cooperate with the authorities”. Carlsberg refused to comment, citing the ongoing investigation.

It has not yet been decided whether the breweries will be fined in the case, but TV2 reports that anonymous sources estimate that the breweries could end up with fines of 1.5 billion kroner if found guilty.


Share

Most popular

Subscribe to our newsletter

Sign up to receive The Daily Post

















Latest Podcast

A survey carried out by Megafon for TV2 has found that 71 percent of parents have handed over children to daycare in spite of them being sick.

Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

Pill pushers
At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”