Nestle's refusal to supply coffee to Aldi anti-competitive, says ACCC

The Australian Competition and Consumer Commission (ACCC) has issued a notice revoking a notification lodged by Nestlé Australia Ltd on 2 December 2005.

According to ACCC Chairman Graeme Samuel, the notification concerns a refusal by Nestlé Australia to supply Nestlé branded products, including Nescafé Blend 43 instant coffee and Milo, and private label products to Aldi Stores unless Aldi complied with Nestlé Australia's conditions on the presentation and advertising of the imported products.

"Aldi had not agreed to display the imported Nescafé coffee in the way that Nestlé Australia required," Mr Samuel said.

Adequate steps were taken by Aldi, Nestle's actions found anti-competitive

Mr Samuel said the ACCC believed Aldi was already taking adequate steps to differentiate the imported Nescafé instant coffee from Nescafé Blend 43.

"The ACCC has decided that the notified conduct has an anti-competitive purpose," Mr Samuel said. "The ACCC also considers that the conduct has the effect or is likely to have the effect of substantially lessening competition, and does not result in a net public benefit. In these circumstances, the ACCC is required to issue a notice to revoke."

10 August, 2006

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