27 September, 2006

Mexico: An anti-trust resolution issued against Femsa. In August, the watchdog warned rival brewer Modelo

In coming days Mexico will issue a resolution against Femsa, likely ordering the bottler and brewer to stop monopolistic sales practices, the head of the anti-trust watchdog said on September 25, according to Reuters.

Eduardo Perez Motta told Reuters in an interview the decision on Femsa, which produces Sol and Tecate beer and Coke products, will be posted in the next two or three weeks and was unlikely to include a fine.

In August, the watchdog warned rival brewer Modelo, maker of Corona beer, for monopolistic sales practices. Modelo was not fined but was ordered to end exclusivity contracts with stores, in which the brewer usually asks store owners not to sell rival brands.

"It is very probable that it will be very similar to the resolution for Modelo," Perez Motta said of the upcoming decision on Femsa.

Femsa, was not immediately available for comment.

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