SABMiller Why don’t we chat about this over a beer?
Notorious teetotalers the Competition Commission have set their sights on a local brewer SABMiller for anticompetitive distribution behaviour back in 2004, when, it is alleged, a bunch of independent distributors, either wholesalers or franchisees, had no independence to set their own prices or select their own customers, and perhaps still don’t, thus
dramatically reducing competition in the marketplace. These distributors, huffs the Commission, are not allowed to operate beyond their allocated territories. This reduces competition between brands in the downstream market, which is exacerbated by SAB’s ownership of 89% of the SA market in the first place. If found guilty, the large one could be facing a fine of up to R400 million.
Comment: Which in industry circles is what is known as a “whack”.