Bundeskartellamt clears merger on the market for Aquavit and Kümmel schnaps in main examination proceedings

After close examination under merger control the Bundeskartellamt has cleared the acquisition of Pernod Richard's aquavit brands Aalborg Jubiläumsaquavit and Malteserkreuz by the Swedish company Ratos AB, owner of the aquavit brand Linie Aquavit. The bitter brand Gammel Dansk is also part of this transaction.

Andreas Mundt, President of the Bundeskartellamt: "Even though the merger means that Germany's best known aquavit brands will be united under one roof, we have established that this will not lead to a dominant position. Perhaps not every customer would agree, but in terms of competition, there is a substitutability between aquavit and various other spirits."

On completion of the merger, Ratos AB will be market leader on the German market for aquavit and kümmel schnapps (a caraway seed schnapps) on account of its brand presence and sales volumes. Nevertheless, the Bundeskartellamt was able to rule out that the merger would create a dominant position on the market. From the perspective of both the consumer and the retail trade, where demand is high, aquavit and kümmel schnapps are regarded as interchangeable. Moreover, other spirits (in particular digestifs and clear spirits) are also in a competitive relationship with aquavit. The Bundeskartellamt has also taken account of new market entries in this segment and the substantial sales volumes of private labels.