Homebrew supplier in trouble with ACCC over resale prices
There are big legal risks for any food supplier who serves to maintain retail prices by arrangements with retailers. This has been highlighted by a new legal action against a supplier this week.
Australian manufacturer and wholesaler of essences for alcoholic products to homebrew shops nationwide, Edwards Essences Pty Ltd, has acknowledged that it engaged in resale price maintenance in undertakings that is has now provided to the Australian Competition and Consumer Commission (ACCC).
Resale price maintenance is where a supplier requires a business customer to not sell goods below a minimum price specified by the supplier. This limits the ability of the retailer to advertise discounts for the products, which is essential for retailers who wish to engage in price competition.
“Businesses must be free to sell their products at prices below suppliers’ recommended retail prices if they wish,” ACCC Chairman Rod Sims said.
“Consumers like to shop around in order to get the best deal. This encourages businesses to compete on price and enables consumers to buy at lower prices. The ACCC takes seriously any attempts by suppliers to prevent discounting of their products, which affects the fundamental right of traders to compete for business”.
In response to an ACCC investigation, Edwards Essences acknowledged that it had made known to a distributor on two separate occasions that it should not sell goods supplied to it by Edwards Essences at a price less than the recommended retail price specified.
The ACCC has accepted court-enforceable undertakings. Edwards Essences has undertaken that:
- it will not engage in resale price maintenance;
- it will write to all Edwards Essences distributors to advise them:
- of their freedom to set their own prices for Edwards products, and
- that they should not place pressure on other distributors who offer discounted prices on Edwards products, and should not seek to induce Edwards to take action against dealers who offer discounted prices.
- its Director will attend trade practices compliance training.
With Australians spending more time at home, many households are looking at growing their own fresh...
Coffee chain Jamaica Blue has launched a limited edition coffee blend, Costa Rica Single Origin.
Tammy Hembrow launches The Smoothie Bar on her hugely successful exercise app, Tammy Fit, toda...
The Heineken Company is acquiring cider brand Strongbow from Asahi Group Holdings Limited (Asahi) i...
The largest commercial kitchen in the southern hemisphere has opened at Melbourne Airport.
The death of a woman who died climbing Mount Everest over the weekend is being connected to her vega...
The Fair Work Ombudsman has said the Baiada Group, Australia’s second largest poultry processor, has...
Costco Australia has plans to start delivering to businesses in the Melbourne metropolitan area.