South Africa Takes A Look At AB InBev Sports Deals

Anheuser-Busch InBev (AB InBev) is to be investigated by the Competition Commission of South Africa for allegedly dominating fridge space at events and securing exclusive deals with sports stadiums, which competitor Distell claims is anti-competitive.

Last week, the Competition Tribunal ordered the Commission to investigate Distell’s allegations that AB InBev had failed to adhere to the conditions of its 2016 acquisition of SABMiller that stipulated there would be space for local products in its fridges in retailers for a specific period. 

Distell spokesperson Dennis Matsane said the company welcomed the tribunal’s decision. Distell has been trying for more than three years to get the alleged breaches investigated.The 2016 deal approved by the tribunal said the merged company would not prevent any outlets from offering refrigerator space to third parties (such as Distell) unless it was at an event sponsored by AB InBev. 

“[AB InBev] shall ensure that outlets [that] are solely supplied by it with beverage coolers or refrigerators are free for a period of five years to provide at least 10% capacity of one such beverage cooler or refrigerator in such outlets to South African-owned and -produced cider brands and competing third parties,” reads the competition authority’s approval of the deal.

Full Content: Times Live

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