Bundeskartellamt imposes multi-million fines against manufacturers of instant cappuccino
18.10.2011
Today the Bundeskartellamt imposed fines totalling approx. nine million euros on two manufacturers of instant cappuccino and two senior employees involved for having agreed on price increases for 'Family Cappuccino' in late 2007 / early 2008. The two companies are Kraft Foods Deutschland GmbH, Bremen, and Krüger GmbH & Co. Kommanditgesellschaft, Bergisch-Gladbach.
The proceedings were initiated on the basis of a leniency application filed by Melitta Kaffee GmbH, Bremen; consequently, this company was not fined. Kraft Foods was granted a reduction of its fine as the company had cooperated in clarifying the accusations.
Instant cappuccino is sold in various product lines by the manufacturers to food retailers in bags or tins containing 350 - 500 grams.
The price increase agreed applied to the selling price ex-factory as well as to the non-binding price recommendation issued by the manufacturers to the food retailers.
The President of the Bundeskartellamt, Andreas Mundt, stated: "Senior staff members of the companies discussed the level and time frame for the intended price increase in telephone conversations. These conversations concerned detailed price increases of between 20 and 40 cents per bag on the selling price ex-factory and the recommended shelf prices and special offer prices for the various products. Such agreements cause great harm to the economy as a whole, and consumers are likely to have paid too much for instant cappuccino."
As a result of a settlement agreed with Kraft Foods, the fine imposed against this company has already become final. The fine against Krüger is not yet final; the order imposing the fine can be appealed against to the Düsseldorf Higher Regional Court.
With the conclusion of its two earlier proceedings against coffee roasters in the food retail and out-of-house sectors, the Bundeskartellamt has now concluded all proceedings on account of horizontal price agreements in the roasted coffee and cappuccino sector. 