APB ends exclusive beer supply practice after competition watchdog probe

SINGAPORE — Asia Pacific Breweries (APB) Singapore will end its practice of supplying draught beer to retail outlets solely on an exclusive basis, after an an investigation by the Competition Commission of Singapore (CCS).

CCS had launched the probe following complaints. In a press release issued today (Oct 28), CCS said that this change in APB’s “business practice” will come into effect from Dec 28. This applies to all draught beer contracts, including new and renewal contracts, entered into retailers. APB will be required to provide CCS with documents to show that these changes have taken effect.

APB’s portfolio of beers include Tiger Beer, ABC Stout, Guinness and Heineken.

Mr Toh Han Li, chief executive of CCS said: “The removal of these exclusive business practices will allow beer suppliers to compete on merit in offering their draught beers to retail outlets. This will allow retailers to stock a greater variety of draught beers, leading to a more vibrant market with more choices for consumers,as well as opportunities for existing suppliers and new entrants including microbreweries and craft beer suppliers.”

The competition watchdog said it will stop its investigations as APB’s voluntary commitment to end the exclusive business practice “adequately addresses CCS’s concerns”.

CCS said it will continue to monitor the beer market to ensure that there are no impediments to competition, and market participants are encouraged to report any potentially anti-competitive business practices.

In a statement, APB said draught exclusivity arrangements are “not uncommon” in the beer industry and competition among suppliers is intense. Retailers and consumers have a wide ranging selection, with over 300 beer brands available in Singapore in various forms, APB added, saying retailers will always have a choice of beer supplier in Singapore. CHANNEL NEWSASIA