Decision Nº M/04/039 from Competition and Consumer Protection Commission, 2004-07-27

• Jurisdiction: Ireland
• Decision Date: 27 July 2004
• Decision Number: M/04/039
• Submitted Date: 08 July 2004
• Date: 27 July 2004
• Parties: DCC,Bottle Green
• Court: Competition and Consumer Protection Commission

1

Determination No. M/04/039 of the Competition Authority, dated

27 July 2004, under Section 21 of the Competition Act, 2002

Notification No. M/04/039 - Proposed acquisition by DCC plc of

Bottle Green Limited

Introduction

1. On 8 July 2004 the Competition Authority, in accordance with Section

18(1) of the Competition Act, 2002 was notified, on a mandatory

basis, of a proposal whereby DCC plc. (“DCC”), through its wholly

owned subsidiary, DCC Food & Beverage UK Limited, would acquire

the entire issued share capital of Bottle Green Limited (“Bottle Green”)

(“the proposed acquisition).

The Parties

2. DCC is a publicly listed company, headquartered in the State, which

has divisions focused on the energy, IT, healthcare, and food and

beverage industries. DCC mainly operates in the State and the UK.

DCC Food & Beverage UK Limited markets and supplies own and third

party branded food and beverage products, particularly snack and

health foods, and ground coffee, soft drinks and wine.

3. Bottle Green is a private company. Its main activity is the importation

of wine into the UK, and the wholesale supply of wine to UK

supermarkets and other retailers.

Analysis

4. Bottle Green’s wine importation and distribution business would, post-

acquisition, form part of DCC’s food and beverage division. DCC holds

an estimated [0-10]% of the wine wholesale industry in the island of

Ireland. Bottle Green is not involved in the wholesale supply of wine in

the State. Bottle Green’s worldwide sales for the financial year ended

31 August 2003 totalled approximately €51.31m: in that same period

it sold approximately €[] worth of wine in the State, all to one

customer.

5. Therefore, although the proposed acquisition does involve a horizontal

product overlap in the Irish sector for the supply of wholesale wine,

the overlap is so minimal that it will not result in a significant increase

in concentration in any market as may be defined in the State.

6. Although DCC’s increased wine product portfolio may allow it to

increase its share of the Irish wine wholesale industry, post-

acquisition, there is nothing to indicate that this would result in a