Skip to content 
Search

Latest Stories

India probe finds AB InBev, Carlsberg, United Breweries colluded on prices: Sources

THE investigations unit of India's Competition Commission has concluded that Anheuser-Busch InBev, Carlsberg and United Breweries colluded to fix beer prices, two people with direct knowledge told.

The Competition Commission of India (CCI) launched the investigation after AB InBev told the watchdog it had detected an industry cartel, leading in 2018 to dawn raids at the three brewers' offices to collect evidence.


The investigation has found that 15-20 executives from the three brewers were involved in discussions of beer prices before they were submitted to Indian state regulators, thereby violating antitrust laws, said the two sources, who declined to be named as the report is not public.

"The evidence seized by the CCI during searches last year was enough to nail the culprits," said one of the sources.

AB InBev, the world's largest brewer, whose Indian offerings include Budweiser and Corona, told it would not be appropriate to comment at this time, but said it takes antitrust compliance "very seriously".

Carlsberg, which sells beer under its own-name brand and also owns Tuborg, declined to comment on Friday (25), but has previously said it is "committed to complying" with all relevant laws.

United Breweries, which is part-owned by Heineken and known for its Kingfisher brand, said it is "given to understand" the investigation report has been submitted to the CCI, and will present its case during the commission's hearing.

The company added that it had made complete disclosures to CCI's investigation unit that it will use to "counter any legal presumptions and material impact against" it.

The chairman of the CCI, Ashok Kumar Gupta, and other members of the commission are expected to decide on a penalty over the next few months, or dispute the investigation findings which were submitted in August, the two sources said.

The report will not be made public and its findings have not previously been reported.

The three brewers, who according to IWSR Drinks Market Analysis account for about 85 per cent of beer consumption in the $7 billion India market, together face a potential fine of around $280 million, sources told last year.

Any company executives found to have fixed prices could also be fined, though AB InBev could escape its share of the fines as it first reported the issue.

In cases such as this the next step would typically be for the companies to argue over penalties, with the CCI deciding on the extent of the leniency to be shown, said Gautam Shahi, a New Delhi-based antitrust lawyer who is not involved in the case.

After an internal investigation in 2017, AB InBev reported its detection of industry collusion under the CCI's so-called "leniency programme" that provides a whistleblower-type protection for cartel members.

The disclosures came after it discovered the Indian operations - which it acquired through its purchase of SABMiller Plc - had for years fixed beer prices with Carlsberg and United Breweries.

Carlsberg and United Breweries have also filed leniency applications in the case, though it is not clear how the CCI treated those submissions.

Separately, AB InBev is battling a city-wide ban in New Delhi for alleged evasion of state taxes, which the company denies.

(Reuters)

More For You

Tata-Steel

he Port Talbot EAF will produce up to 3 million tonnes of steel per year using UK-sourced scrap.

getty images

Tata Group begins construction of new Electric Arc Furnace in Port Talbot

TATA STEEL UK has started construction of a new Electric Arc Furnace (EAF) at its Port Talbot site in South Wales. Tata Group chairman Natarajan Chandrasekaran marked the groundbreaking ceremony on July 14, joined by Tata Steel CEO and managing director TV Narendran and Tata Steel UK CEO Rajesh Nair.

The EAF project is part of Tata Steel UK’s £1.25 billion plan to transition to low-carbon steelmaking, backed by £500 million from the UK government. The furnace is expected to be commissioned by the end of 2027 and aims to reduce carbon emissions at Port Talbot by about 90 per cent, or 5 million tonnes of CO₂ annually. The project is expected to support 5,000 jobs.

Keep ReadingShow less
Labour’s non-dom tax changes may cost £4bn, experts warn

Starmer and Reeves during a visit to Horiba Mira in Nuneaton in Nuneaton. (Photo: Getty Images)

Labour’s non-dom tax changes may cost £4bn, experts warn

PLANS by Labour to overhaul the tax rules for non-domiciled residents in the UK could cost the public purse up to £4 billion and result in the loss of thousands of private sector jobs, according to a new analysis.

A report by the Centre for Economics and Business Research (CEBR), shared with The Times, suggested that scrapping the current non-dom regime could lead to a sharp drop in tax revenues if even a fraction of those affected decide to leave the country.

Keep ReadingShow less
Tesla set to open first showroom in India

Elon Musk and Narendra Modi (right)

Tesla set to open first showroom in India

US CARMAKER Tesla is finally making its official debut in India with the opening of its first showroom in Mumbai.

The firm, led by Elon Musk, will unveil the new “Tesla Experience Centre” on Tuesday (15) at Maker Maxity Mall in the Bandra Kurla Complex, one of the city's top commercial hubs.

Keep ReadingShow less
Asian firm acquires Kings Court Hotel for £2.75m

UK-based Nanak Hotels acquired the 60-room Kings Court Hotel in Warwickshire for £2.75 million. (Photo: Colliers International UK)

Asian firm acquires Kings Court Hotel for £2.75m

UK-BASED Nanak Hotels recently acquired the 60-room Kings Court Hotel, a 17th-century property in Warwickshire, England, for £2.75 million. This is the first regional acquisition by the privately held firm led by British Indians Harpreet Singh Saluja and Karamvir Singh.

Nanak Hotels, which operates a UK property portfolio, plans to invest in the property's refurbishment and repositioning, according to a statement from Colliers International UK, which brokered the transaction.

Keep ReadingShow less
Priya Nair becomes first woman CEO in Hindustan Unilever's history

Priya Nair (Photo: Unilever)

Priya Nair becomes first woman CEO in Hindustan Unilever's history

PRIYA NAIR has been appointed as the CEO and managing director of Hindustan Unilever Ltd (HUL), effective from August 1. She will be the first woman to lead the company in its history.

The announcement was made by HUL on Thursday (10). Nair, who currently serves as president, Beauty & Wellbeing at Unilever, will take over the role from Rohit Jawa, who will step down on July 31 to pursue other interests.

Keep ReadingShow less