France’s competition authority has fined six fruit purée producers a total of EUR58.3m (US$64.8m) for fixing prices and controlling market share.
The l’Autorité de la Concurrence found the firms were part of a nationwide cartel between October 2010 and January 2014 that controlled 90% of the supermarket private-label segment and 100% of foodservice.
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Charles Faraud was fined EUR16.4m, Andros EUR14.1m, Bel Group’s Materne EUR13.6m, Délis/Lactalis EUR9.5m, Valade EUR2.8m and Conserves France almost EUR2m. A seventh firm, Netherlands-based Coroos, escaped punishment after acting as whistleblower.
Isabelle de Silva, the Authority’s president, said the level of fines was calculated based on turnover “so as not to put their business in difficulty”.
She added: “On the contrary, when it concerns a major group, in this case Lactalis and Andros, the sanction is higher.”
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In 2010, the companies formed a coordinated agreement to increase sale prices and share out volumes and customers, according to the Authority, which added the firms justified their actions due to poor market conditions on the back of a rise in commodities and packaging, along with price pressure from supermarkets.
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By GlobalDataEvidence had been collected from the companies’ premises in September 2015 in France and the Netherlands backing the claims of Coroos.
“After learning about the decision, Materne disagrees with the ruling,” the unit of Bel Group said in a statement. “Accordingly, the company has decided to appeal.”
Charles Faraud, which owns the Charles et Alice brand, said it too will launch an appeal. The company “formally contest(s) their involvement in the practices described”.
In its response, Lactalis said it “regrets the severity of the sanction against Délis (its subsidiary), which is a small- to medium-sized company operating in a sphere of activity which is totally distinct from the core business of the group”.
“The companies in question are carefully examining the decision of the Autorité de la Concurrence and reserve the right to appeal.”
just-food has reached out to the other firms involved for comment.
