EU fines three beer brewers for cauterization

04/18/07 - newratings.com

LONDON, April 18 (newratings.com) – The European Commission Wednesday announced that it was fining three Dutch beer brewers €273.8 million for cartel activities between 1996 and 1999.

The three beer companies are Heineken NV (HNK1), Grolsch NV and Bavaria NV. Heineken was fined the maximum, at €219.3 million, while Grolsch and Bavaria were fined €31.7 million and €22.9 million, respectively. Although Belgian brewer InBev SA was also involved in the cartel, it was not punished since it had informed the authorities. The EU competition commissioner Neelie Kroes said, "It is unacceptable that the major beer suppliers colluded to hike up prices and carve up the market between themselves."