Brazil OKs Company Collaboration To Ease COVID-19 Fallout

CADE recently decided to authorize the collaboration among a group of competing companies as a measure to minimize the effects of the crisis due to the new coronavirus. Ambev, BRF, Coca-Cola, Mondelez, Nestlé, and Pepsico are going to undertake the “Movimento Nós,” a project to recover the activity of small retailers in the sector.

The companies alleged to CADE that, with the pandemic outbreak, many establishments, particularly those related to the commerce and services sector, temporarily suspended their activities as a measure to prevent contamination. 

The measures would have severe economic impacts for small and medium-sized retailers – which in Brazil comprise a significant portion of the distribution channels for consumer goods, such as beverages, food, personal and domestic care products, among others – thus, jeopardizing the survival of many of these companies.

In this context, in the face of the protracted crisis, isolated actions would not have the capacity to produce effective results and on the scale necessary to assist commercial establishments to resume their activities. Therefore, the companies decided to collaborate with each other to promote the necessary support through the Movimento Nós.

Full Content: CADE

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