Anti-cartel bloodhounds are after Gaffel Brewery’s co-owner

The Federation of Rhine-Westphalian Breweries is facing antitrust proceedings by the German authorities. According to Cologne newspapers of 30 April 2013, several of the Federation’s top officials have been involved in illegal price fixing.

The Bonn-based antitrust authorities have now opened formal proceedings against Heinrich Becker, co-owner of the Gaffel Brewery in Cologne and President of the Federation as well as against his deputy Michael Hollmann, owner of the Bolten Brewery.

Mr Becker chaired at least two of the Federation’s meetings in 2006 and 2007 when "anti-competitive price agreements" were taken which have led to "spiralling prices for draught and bottled beer", newspapers say.

At the meetings Mr Hollmann, according to witness statements, instructed the Federation’s Secretary to delete controversial paragraphs from the protocol, saying that these "are not for the eyes of the competition watchdogs". Both Mr Becker and Mr Hollmann sit on the board of the German Brewers’ Association.

In March this year, it was revealed that the competition watchdog is investigating more than a dozen German brewing companies with a combined market share of 50 percent over illegal practices. A spokesperson for the antitrust body confirmed investigations into 14 national brewing companies plus one industry federation but would not disclose further details.

The recent investigation seems to have caused some unrest among members of the Federation of Rhine-Westphalian Breweries. The bitter legal disputes between the Becker brothers who own the Gaffel Brewery (BRAUWELT International reported) have already made several members of the Federation voice their displeasure with Heinrich Becker, their Federation’s President. Mr Hollmann was expected to take over from Mr Becker as President at the Federation’s Annual Meeting at the end of May 2013.