The European Commission has opened an investigation into allegations Red Bull suppressed sales of its “closest competitor” in a Europe-wide strategy.
The probe will seek to discern whether Red Bull tried to influence shops to “delist or disadvantage” energy drinks sold in formats larger than its own distinctive 250ml can.
Red Bull allegedly “targeted in particular the energy drinks sold by its closest competitor”, the EC said, adding it was concerned the energy drinks giant had implemented such a strategy “at least in the Netherlands”.
While the EC did not name the competitor, Red Bull faces stiff competition in Europe from Monster Energy, which sells drinks in 500ml cans.
The EC said it suspected Red Bull had granted “monetary and non-monetary” incentives to push shopkeepers to delist or put competitors’ drinks in less visible places, and had misused its position as category manager for certain stores to push out 250ml-plus competitors.
“Today we are opening an investigation into Red Bull’s alleged plan to protect its well-known energy drink from rival products, in breach of competition rules,” said Teresa Ribera, the EC’s executive vice president for clean, just and competitive transition.
“We want to see if these practices may be keeping prices high and limiting choice of energy drinks for consumers,” she added. “This investigation is part of the Commission’s continued efforts to enforce competition rules in the food supply chain to the benefit of European consumers.”
The probe is the EC’s first formal investigation into potential abuse of a category manager position by a supplier, and follows surprise inspections by the EC at Red Bull offices in 2023.
If it is found to have broken European competition rules, Red Bull could be fined up to 10% of its turnover.
Red Bull declined to comment, adding it was a matter of policy not to talk about pending proceedings.
No comments yet