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Fabricas Nacionales de Cerveza fined for the third time for exclusivity contracts

Fabricas Nacionales de Cerveza fined for the third time for exclusivity contracts

The fine applied to FNC by CPDC amounts to 36 million indexed units (equivalent to approximately 200 million pesos, or four million dollars), in addition to ordering the immediate cessation of these “illegal” maneuvers.

The company, which has been active in Uruguay for 15 decades, “declared” a similar number of agreements, but setting other plausible criteria, the maneuvers could represent around 74% of total income, doubling the figure of the participating businesses.

Based on information provided by the companies Milotur SA, the Center for Retail Grocers, Baristas, Self-Servicists and Related of Uruguay, Pontyn, the Association of Craft Microbreweries of Uruguay, the Chamber of Craft Breweries of Uruguay, Bizarra, Leopoldo Gross and Lisley, It was clarified that the agreements used to be verbal and that the appropriation of the profit margin was for both producers and merchants, which was transferred to the sale price.

The investigation determined that the maneuvers that threaten the free competition They not only harm small producers, but also consumers, who through actions such as changes in the order of display on shelves or unclear prices end up accessing only beers from the multinational oligopolistic group.

The great concern of the minority producer sector (SMEs and craft brewers) lies in the recurrence of FNC, despite economic sanctions. It is not the first time that this has happened, it already happened in 2013 and 2017, and the strategy of the government agency was to increase the amount of the penalty.

Craft producers denounced that, given that Fábricas Nacionales de Cerveza is constituted as a multinational (pepsico holdings) local production is not a priority for the company and that recently branded beers have been imported Pilsen Y Northern since Argentina.

Source: Ambito

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