Tuesday, 14 January 2014
German Brewers Not So Pure?
The German brewers’ union may be trying to get the Reinheinsgebot recognised as an UNESCO world treasure, but it seems that some of their members’ business ethics are less than pure. Germany’s federal cartel office has fined four of the country’s largest brewers €106.5M for price fixing. The fines relate to the period 2006-2008 when managers of Bitburger, Krombacher, Veltins, Warstenier & AB InBev conspired to rig the price of their products. It’s said that this price-fixing resulted in a country-wide rise of €5-€7 per hundred litres for barrelled beer and €1 per crate of bottled beer.
Of course there is growing innovation, like elsewhere, in smaller German breweries and the fines were welcomed by the Union for Private Breweries which represents their interests. Its director, Roland Demleitner, said that large brewery conglomerates were increasingly aggressive in their attempts to push smaller producers out of the shrinking market. He welcomed the fine as “an important consequence” and urged beer drinkers and bar owners to choose local beer over one from the largest producers.