Publicans rise against brewers

The news that the Royal Dutch Hotel & Restaurants Association (KHN) has sued Heineken, Grolsch, Bavaria and AB-InBev for compensation after the four formed a trust between 1996 and 1999, has made headlines in various Dutch and Belgian newspapers.

In early June 2012, KHN pressed charges, trying to enable individual bar owners to file a claim, Belgian newspaper De Tijd noted. KHN's Lodewijk van der Grinten was quoted as saying: "Competition in the Dutch beer market is not sound, bar owners are held 'captive' by the breweries which also is bad news for consumers, as they are forced to pay more for a glass of beer."

Before legal proceedings start, the brewers are allowed to come up with their own initiatives to change the situation, De Tijd notes, mentioning a deadline of April 2013.

In 2007 the European Commission fined the Dutch brewers Heineken, Grolsch and Bavaria a total of EUR 273 million (USD 340 million) for operating a beer cartel in the Netherlands. AB-InBev received no fines as they provided decisive information about the cartel under the Commission’s leniency programme. The brewers appealed the Commission's decision and their fines were subsequently reduced.

The hospitality industry association now wants a Dutch court to decide whether the cartel ruling by the European Commission in 2007 also applies under Dutch law. Bar owners who want to file damage claims have to go to Brussels, the newspaper explains. However, if the European ruling is confirmed by the Dutch court, they can also file their claims in the Netherlands, thus lowering obstacles for such claims. The timing of KHN’s action is not a coincidence as claims have to be filed within five years after the ruling.

The legal action was also spurred by the brewers’ rejection to do anything about the tight contracts they have with bar owners, Dutch media said on 4 June 2012.

The Dutch newspaper De Volkskrant on 5 June 2012 quoted Mr van der Grinten as saying: "Talks between the breweries and the industry association have not solved the problems following the initial ruling. The breweries refrain from acting and we are fed up with that. Through a ruling by the Dutch court, bar owners can file a claim." The newspaper notes that Heineken declines to comment whereas a spokesman for Grolsch is surprised: "Talks with KHN were ongoing, we did not expect the summons."