Abstract
The probability that the Commission or national authorities intervene in a merger in the agro-food and branded consumer goods sector is much higher than in the other sectors of the economy. The Orange Report explains why, by reviewing the decisions adopted by the Commission in the sector.
Part of the issue is related to the Commission's assessment of the relations between manufacturers and large retail distribution chains. The Commission tends to consider that large retail chains do not have a sufficient bargaining power to offset dominance of national markets by manufacturers. However, the Commission does consider the existence of purchasing power by large retailers when assessing mergers between retailers.
The Commission tends to include private label in the relevant product market, but nevertheless tends to discount its capacity to compete with leading brands, depending on a number of factors such as their rate of penetration and relative prices.
The Commission considers that brand portfolios and category management do provide manufacturers with a sufficient degree of market power. This however changes from market to market.
The Orange Report provides a review of all relevant markets in the sector and allows identifying the more important decisions in each of the beer market, chocolates, pasta, frozen foodstuffs, meat products, seed oils, alcoholic and non alcoholic beverages, detergents, shampoos, tooth brushes and tooth pasta, electrical appliances, etc…
It also analyzes how companies such as Procter & Gamble, Coca-Cola, Unilever, Nestlé, Guiness, Kimberley Clark, Barilla, Masterfoods, Grand Metropolitan, Pernod Ricard, Moulinex, and others obtained clearance by offering the right remedies and divestitures.