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Beer company sanctioned for unfair competition

By Vera Abogados - 06/05/2021

The Superintendence of Industry and Commerce (SIC) of Colombia ordered beer company Bavaria & Cia S. to refrain from signing future supply contracts that include exclusivity clauses for the sale of its products in the country.

Bavaria is the biggest brewery of Colombia and the second-largest brewery in South America since 2016, when Anheuser-Busch InBev acquired in Colombia the entire SABMiller company, including its subsidiaries such as Bavaria.

The SIC sanction came after a complaint filed by local rival Central Cervecera de Colombia, which stated that Bavaria has generated exclusivity clauses through its dominant position in the market, specially regarding the sale obstruction of other beer brands through on-premise outlets.

According to Central Cervecera de Colombia, several on-premise outlets have signed supplying contracts that compel them to exclusive advertising and commercialization of Bavaria's brands. This entails the buyer by placing limitations on the rights of the buyer to choose what, who and where they deal, therefore substantially lessening the competition in the beer industry in Colombia.

By Vera Abogados - 06/05/2021
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VERA ABOGADOS ASOCIADOS S.A.-, is a Colombian law firm with specialized lawyers, Founded more than 40 years ago, by Jorge E. Vera Vargas, Doctor in Law and Political Sciences of the La Gran Colombia University in Bogota D.C., Colombia. At present, with principal offices in the city of Bogota D.C., and offices in the cities of Cali, Medellin, Barranquilla, at national level, and at an international level in Ecuador and Panama.

The Firm is today a reference in the Andean Community, and it makes part of important international affiliations such as PRAGMA, EEIG. International Network of Law Firm, The International Trademark Association (INTA), Asociación Interamericana de Propiedad Industrial (ASIPI), Associação Brasileira da Propriedade Intelectual (ABPI), and the Chamber of Industrial Property Agents of the Republic of Argentina(CAPIRA).
VERA ABOGADOS ASOCIADOS S.A. offers professional services to prestigious Colombian and foreign companies in the following juridical areas: Industrial property, Trademarks, Patents, Copyrights, New Technologies, Disloyal Competition, Commercial Practices, Sanitary Rights, Community Right, Administrative law, Tax Law, Corporate Right and Foreign Investment and Business Rights.
The Firm offers of equal way a service of integral consultancy in Foreign Commerce, Business administration, Finance and Accountancy. The team is made up of specialized lawyers in each of the workspaces and expert multilingual professionals (Spanish, English and French) that respond with efficiency and competitiveness to the needs and demands of our customers around the world.