Brewing giant Heineken has found itself in legal trouble, this time from supposedly abusing its power in the face of stiff competition.
Macedonian Thrace Brewery, an operation based in Greece, is suing Heineken and its Greek subsidiary for more than $100 million for allegedly pressuring stores and bars into stocking Heineken products. According to the lawsuit, Heineken is engaging in unfair trade practices in an effort to get its beer into retail markets, thereby forcing competitors out.
It’s no secret that Heineken dominates the beer market in Greece. According to official statistics from industry analysts, Heineken has enjoyed significant beer market share in Greece. That share has reached as high as 70 percent over the past fifteen or so years. Heineken is feeling increased competitive pressure and has ramped up unfair competitive practices, at least according to the lawsuit.
Heineken and another brewing operation, Athenian Brewery, have been investigated for unfair practices in the recent past, so this is nothing new. The Hellenic Competition Commission completed a recent 12 year investigation and concluded that Athenian Brewery abused its business power in violation of the law. The result was a $33.3 million fine levied on Heineken and Athenian Brewery plus additional fines of $10,500 each day until the anti- competitive practices came to a halt. Both breweries plan to appeal these decisions.
Macedonian Thrace Brewery says these unethical practices have been going on for years and need to come to an end immediately. Thrace founder and CEO Demetri Politopoulos applauds the commission investigation and hopes these legal actions will bring about the desired results.
“For decades, Heineken has been acting like a giant bully who will stop at nothing to get its way”, Politopoulos said. “It has been illegally distorting the Greek beer market while protecting the supremacy it wields, by coercing and intimidating distributors, retailers, and wholesalers, and ultimately ripping off consumers”, Politopoulos added.
Greek beer drinkers shouldn’t expect an immediate decision on this matter. It will take time to sift through the evidence and jump through the legal loopholes. But Macedonian Thrace and other small breweries are hopeful that these alleged abuses of power will come to a close very soon, for the benefit of both business and consumers.
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