VALBY, Denmark, March 1, 2002 (PRIMEZONE) -- Carlsberg A/S has today received a Statement of Objections from the EU Commission. The Commission is of the initial opinion that Carlsberg and Heineken during the period 1993-1996 had an agreement to limit competition in their respective home markets. Carlsberg does not concur with the opinion of the Commission. The Commission's statement will now be studied in detail and Carlsberg will then reply to the statement.
In its announcement to the Copenhagen Stock Exchange of May 4, 2000, Carlsberg A/S stated that the EU Commission had initiated a dawn raid investigation at Carlsberg. Today, Carlsberg has received a Statement of Objections from the EU Commission, from which it appears that the Commission has now concluded its investigations and so far finds that during the period 1993-1996 an agreement/concerted practice existed between Carlsberg and Heineken to limit competition in their respective home markets. The Commission bases the case on a few contacts between Carlsberg's and Heineken's former chief executive officers in connection with which internal memos were prepared. In Carlsberg's opinion such contacts were courtesy relations and ordinary business discussions. The Commission interprets the internal memos as though an understanding that only limited activities should take place in the other party's home market existed between Carlsberg and Heineken during the mid-90s.
Carlsberg's own Investigations
Carlsberg's Board of Directors, which was not aware of the contacts between Heineken and Carlsberg, has since May 4, 2000, launched internal investigations in order to determine whether such agreement/concerted practice existed. The investigations - which have been complicated by the fact that the case relates to a period prior to the appointment of the present Executive Board - has included thorough examinations of all archives and minutes of board meetings as well as interviews with the board members, executives and managers at the time in question. External lawyers and economists have also assessed the material. Thereafter, a report has been prepared and sent to the EU Commission in September 2001. Based on the results of these investigations, Carlsberg does not concur with the opinion of the Commission.
It is correct that a few business related talks did take place between Carlsberg's and Heineken's former chief executive officers, from which internal memos exist. However, in Carlsberg's opinion the significance attached to these talks by the Commission is incorrect just as the Commission's understanding of significant issues appears to be unfounded.
The Commission's statement will now be studied in detail and Carlsberg will then reply to the statement.
Carlsberg in Holland since 1966
Carlsberg beer has been sold on the Dutch market since 1966 and Tuborg beer since 1982. Sales of the company's beer in Holland have since then gradually increased. During the period 1992-95 the growth was significant. The present Carlsberg distributor was appointed in 1995 when Carlsberg decided to step up activities in the Dutch market further. Nevertheless, Carlsberg's market share in Holland has been and remains low and corresponds to the market shares in e.g. France and Austria.
The Dutch market was and is controlled by four breweries - Heineken, by far the leading player, Grolsch, Bavaria and Interbrew - which together account for more than 90% of total beer sales. Since the mid-90s, the market shares of the four breweries have hardly changed, partly because the breweries control the outlets and partly because Dutch consumers are loyal to the local brands. Despite active sales efforts, Holland has proven to be a very difficult and "closed" market to expand in. Not even Carlsberg's sponsorship and substantial investments in connection with Euro 2000 - the European Football Championships in Holland and Belgium - resulted in more than a marginal increase in sales of Carlsberg beer in Holland. In other countries the sponsorship influenced sales substantially.
The contacts in which the Commission has taken an interest have in no way influenced Carlsberg's activities on the Dutch market. These activities have exclusively been governed by Carlsberg's own commercial considerations.
Press Conference
A press conference will be held today, March 1, 2002, at 14.30. The conference will take place at the Carlsberg Museum, Valby Langgade 1, Valby.