Arla is disappointed at competition case verdict
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- 10 February 2006
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Arla Foods’ Managing Director Peder Tuborgh expressed his disappointment that Arla was today found guilty of contravening competition legislation at the Court in Århus.
The Court fined Arla DKK 5 million. The judge found it proved that two sales representatives from Arla, at a 40 minute meeting with the wholesaler, Metro, made a marketing subsidy of DKK 200,000 conditional upon Metro terminating its partnership with Hirtshals Co-operative Dairy. The prosecution had demanded a fine of at least DKK 30 million.
“The fine is far less than demanded by the prosecution, but I am nevertheless disappointed at the verdict. It can give Danish consumers the impression that Arla generally employs unlawful business methods, although the verdict clearly shows that this is not the case.”
“That said, I’m pleased that the judge confirms that no member of Arla’s management took the decision to edge out one of its small competitors from the dairy cabinets. I also note that the judge in no way implied that Arla employees had arrived at the meeting intending to make a marketing subsidy conditional upon Hirtshals being pushed out,” said Arla’s Managing Director.
Arla has two weeks to appeal against the judgment.
Arla Foods is an international dairy company owned by 9,700 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands. Arla Foods is one of the leading players in the international dairy arena with well-known brands like Arla®, Lurpak®, Puck® and Castello®. Arla Foods is focused on providing good dairy nourishment from sustainable farming and operations and is also the world's largest manufacturer of organic dairy products.