We tell you why the SIC did not endorse the alliance between Bavaria and Coca Cola – Companies – Economy


The strategic and commercial alliance that was raised between Bavaria, Coca Cola and several affiliate companies of these two beverages giants in the country will not be able to be carried out, since the Superintendency of Industry and Commerce, through Resolution 23,569, decided to say no to that initiative due to the implications that it would bring in market competition, given the size of both companies.

(Read also: ‘Congress and Government can reach the best solution’: Iván Duque)

“Even though this Superintendence recognizes that the projected alliance between the Participants can generate efficiencies derived from cost savings, finds that the benefits that would be obtained may not offset the possible restrictive effects on competition that would occur in the affected markets, “says the aforementioned resolution.

(You may also be interested in: The reform improves equity and ensures recovery: IMF)

And he adds that currently certain beverage markets have high entry and expansion barriers for current and potential competitors, mainly with regard to production, distribution and marketing.

Therefore, the SIC It indicates that if such an alliance between these companies were to be presented, these barriers to entry and expansion in the markets for alcoholic and non-alcoholic beverages in Colombia would increase, among other reasons.

The control entity warns in the aforementioned resolution that the significant participation and power of Bavaria in the beer market and the significant participation of Coca Cola in non-alcoholic beverages, the combination of the product portfolio of these companies, the recognition of their brands, the investment capacity, the union of the distribution and marketing networks, and the sales conditions of the two companies will lead to the integrated entity having strong bargaining power, which would allow it to exclude the competition from the different sales channels, since it would be safe from any competitive pressure beyond of which I could present Postobón.

See also  'Employees will improve by a few tens in 2021' | NOW

ECONOMY AND BUSINESS

.

Leave a Comment