Canda: Labatt pleads guilty, fined $250K for 'influencing' beer prices in Quebec

Labatt Brewing pleaded guilty on November 23 in court to a charge of illegally influencing discount beer prices in Quebec and will pay a fine of $250,000, Candaian Press said on the same date.

Labatt Brewing released later a statement saying it regretted actions which were cited in the case. The ruling by the Court of Quebec follows an inquiry launched in October 2004 by the Competition Bureau into the Quebec beer industry.

The court found that between March 2004 and April 2005, Labatt, "through some of its sales representatives, attempted either by agreement, threat, promise or similar means, to influence upward, or discourage the reduction" of prices at which nine independent grocery retailers sold discount beer from Labatt and other breweries, the Competition Bureau said in a release. Such behaviour is prohibited under the Competition Act.

"Labatt respects and abides by the provisions of the Competition Act and will comply fully with the Quebec Court order to inform our independent retailers in Quebec, in writing, of the provisions," Labatt stated.

"The court acknowledged that the actions which led to the charge did not reflect Labatt corporate policy and that Labatt have never previously been found guilty of any creeiminal offence."

Labatt has a team of more than 800 sales representatives across Quebec, dealing with more than 20,000 retailers.

In conformity with the to the Canadian Brewers Association, Labatt, part of Belgian-based giant Interbrew, and its historic rival Molson Coors (TSX:TAP.NV) each have roughly 41 per cent of the Canadian beer market.