Hot Pursuit     27-Sep-21
United Breweries tumbles after CCI imposes penalty
United Breweries fell 3.84% to Rs 1544.85 after the Competition Commission of India (CCI) fined the company about Rs 750 crore for indulging in cartelisation in the sale and supply of beer.
CCI on Friday (24 September) imposed penalties on three beer makers as well as their trade association All India Brewers' Association (AIBA) for cartelisation.

CCI passed a final order against UBL, SABMiller India (now known as Anheuser Busch InBev India) and Carlsberg India for indulging in cartelisation in the sale and supply of beer in various States and Union Territories in India.

As AIBA was found to be actively involved in facilitating such cartelisation, CCI also held AIBA to be in contravention of the provisions of Competition Act, 2002 (the 'Act').

The period of cartel was held to be from 2009 to at least 10 October 2018, with Carlsberg India joining in from 2012. AIBA served as a platform for facilitating such cartelisation since 2013.

"Giving benefit of reduction in penalty under the provisions of Section 46 of the Act of 100% to AB InBev and its individuals, 40% to UBL and its individuals and 20% to Carlsberg India and its individuals," the release said.

The CCI directed UBL and Carlsberg India to pay penalties of approximately Rs 750 crore and Rs 120 crore respectively, besides passing a cease-and-desist order.

Based on evidences, CCI found that the three companies engaged in price co-ordination in Andhra Pradesh, Karnataka, Maharashtra, Odisha, Rajasthan, West Bengal, National Capital Territory of Delhi and the Union Territory of Puducherry.

The firms were collectively restricting beer supply in Maharashtra, Odisha and West Bengal. The companies were sharing market in Maharashtra and co-ordinating beer supply to premium institutions in Bengaluru.

Further, the fair trade regulator also found co-ordination among UBL and AB InBev for purchase of second-hand bottles.

"We are reviewing the order in consultation with our Legal Advisors, and will evaluate further legal options, as may be available under applicable law," United Breweries said in a clarification on Friday (24 September).

On a consolidated basis, United Breweries reported a net profit of Rs 30.89 crore in Q1 FY22 as against a net loss of Rs 114.40 crore in Q1 FY21. Net revenue from operations rose 120.6% to Rs 1,119.47 crore in the first quarter as compared with the same period las year.

United Breweries is primarily engaged in the manufacture, purchase and sale of beer and non-alcoholic beverages.

Previous News
  United Breweries consolidated net profit declines 15.97% in the June 2023 quarter
 ( Results - Announcements 29-Jul-23   07:38 )
  United Breweries launches London Pilsner Strong Beer in Karnataka
 ( Corporate News - 29-Feb-24   16:16 )
  United Breweries Ltd slips for fifth straight session
 ( Hot Pursuit - 08-May-23   13:35 )
  United Breweries Ltd spurts 1.13%, gains for five straight sessions
 ( Hot Pursuit - 06-Jun-24   13:00 )
  United Breweries launches Heineken® Silver and Heineken® Original in Karnataka
 ( Corporate News - 20-Aug-24   18:56 )
  United Breweries to announce Quarterly Result
 ( Corporate News - 24-Jan-24   15:41 )
  United Breweries Q2 PAT slides 20% YoY to Rs 107 cr
 ( Hot Pursuit - 20-Oct-23   12:06 )
  United Breweries to conduct board meeting
 ( Corporate News - 18-Jan-21   19:32 )
  United Breweries Ltd up for fifth session
 ( Hot Pursuit - 17-Jul-23   13:00 )
  United Breweries Ltd down for fifth straight session
 ( Hot Pursuit - 19-Apr-22   13:36 )
  Board of United Breweries appoints MD and CEO
 ( Corporate News - 07-Sep-23   13:03 )
Other Stories
  D B Corp Ltd leads gainers in 'B' group
  07-Oct-24   12:15
  eClerx Services Ltd leads gainers in 'A' group
  07-Oct-24   12:00
  Bank of India records 12% YoY growth in domestic deposits in Q2
  07-Oct-24   11:26
  Metropolis’ revenue climbs 13% YoY in Q2
  07-Oct-24   11:12
  NSE SME HVAX Technologies makes a decent debut
  07-Oct-24   11:01
  Titan revenue rises 25% YoY in Q2 FY25
  07-Oct-24   10:57
  NSE SME Saj Hotels makes a poor start
  07-Oct-24   10:53
  IndusInd Bank’s net advances climb 13% YoY in Q2 FY25
  07-Oct-24   10:30
  Info Edge billings climb 14% YoY in Q2 FY25
  07-Oct-24   10:19
  CARE Ratings reaffirms 'A-' rating of RACL Geartech with 'stable' outlook
  07-Oct-24   10:16
Back Top