Controversy
In 2004 the South African Competition Commission began an investigation into anti-competitive behavior by South African Breweries (SAB) after receiving complaints from liquor distributors. It is alleged that SAB colluded with third party distributors to carve up the South African beer market and curb the ability of distributors to stock its rivals products. It is also alleged that SAB gave/gives preferential discounts to preselected distributes and used them to fix prices.
If found guilty SAB could potentially be fined 10% of its annual turnover.
SAB argues that its distribution practices are economically efficient, highly competitive and, therefore, contributes to consumer welfare. As such, so SAB argues, it is entitled to continue delivering and selling its brands in the most profitable way it can. The hearings started on 11 August and are expected to continue until 27 February 2011.
Read more about this topic: South African Breweries
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