Belgium: InBev declines comment on whether CEO present at Dutch beer cartel meetings

Brewer InBev SA declined to comment on whether the chief executive of the group during the years 1996-1999 was present at secret meetings with rival companies in the sector to operate an illegal cartel in the Dutch beer market, AFX News Limited reported April 18.

A spokeswoman for InBev said: "I am not going to be able to answer that question."

The spokeswoman also declined to comment on whether the company had taken disciplinary action against its management or staff over the cartel behaviour.

The European Commission, earlier, said it has evidence that "high-ranking management" of InBev, Heineken NV, Royal Grolsch NV and Bavaria NV, including board members, the managing director and national sales managers, participated in cartel meetings and discussions to co-ordinate beer prices and price increases in hotels, restaurants, cafes and supermarkets.

It added it also has evidence that the companies were aware that their behaviour was illegal and took measures to avoid detection, such as using a "panoply of code names and abbreviations" to refer to their unofficial meetings and holding these meetings in hotels and restaurants.

EU competition commissioner Neelie Kroes said: "The highest management of these companies knew very well that their behaviour was illegal, but they went ahead anyway and tried to cover their tracks."

The InBev spokeswoman highlighted that the case is at "least eight years old" and that the company has "taken all the necessary measures" to ensure its practices comply with EU law.

Earlier, the EU executive fined Dutch brewers Heineken, Grolsch and Bavaria a total of 273.8 mil euros over the cartel activities.

Heineken was fined 219.3 mil euros, Grolsch was fined 31.7 mln and Bavaria was sanctioned 22.9 mil euros.

Belgium's InBev, though implicated in the cartel, received full immunity from fines by acting as the whistleblower.

E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .