Decision Nº M/08/009 from Competition and Consumer Protection Commission, 2008-08-28

Decision NumberM/08/009
PartiesKerry,Breeo
StatusProhibited
DETERMINATION IN MERGER NOTIFICATION M/08/009
KERRY/BREEO__________________________________________________
Section 22 of the Competition Act 2002
Proposed acquisition by Kerry Group plc of Breeo Foods Limited and Breeo
Brands Limited
Dated: 28/08/2008______________________________________________
Merger Notification M/08/009 – Kerry/Breeo
i
CONTENTS
SECTION ONE: INTRODUCTION .................................................1
Rationale for the Notified Transaction ......................................................2
Phase 1: Preliminary Investigation ..........................................................3
Phase 2: Full Investigation....................................................................... 7
SECTION TWO: Background.....................................................10
Introduction ........................................................................................... 10
The Level of the Supply Chain at which the Part ies Operate...................10
Production and Supply Facilities of the Parties and the Route to Market11
Branded and Private Label Products of the Parties .................................14
Branded Products, Private Label and Counterv ailing Buyer Power......... 17
Products Not Analysed in Detail in the Authority’s D etermination..........26
Econometric Results................................ ...............................................28
SECTION THREE: BREAKFAST MEATS - SAUSAGES.....................33
Introduction ........................................................................................... 33
Background ............................................................................................ 33
Overlap .................................................................................................. 33
Relevant Product Market ........................................................................33
Relevant Geographic Market .................................................................. 36
Market Structure ....................................................................................38
Competitive Analysis ..............................................................................41
SECTION FOUR: BREAKFAST MEATS - PUDDINGS.......................48
Introduction ........................................................................................... 48
Relevant Market .....................................................................................48
Competitive Analysis ..............................................................................50
Conclusions ............................................................................................ 52
SECTION FIVE: BREAKFAST MEATS - RASHERS..........................54
Introduction ........................................................................................... 54
Relevant Market .....................................................................................54
Market Structure ....................................................................................54
Competitive Analysis ..............................................................................57
Private Label ..........................................................................................65
Conclusions ............................................................................................ 70
SECTION SIX: COOKED MEATS ................................................72
Introduction ........................................................................................... 72
Relevant Product Market ........................................................................72
Relevant Geographic Market .................................................................. 78
Poultry Cooked Meats............................................................................. 78
Conclusion.............................................................................................. 84
Conclusions ............................................................................................ 86
Non-Poultry Cooked Meats .....................................................................86
Private Label ..........................................................................................95
Conclusion on Non-poultry Cooked Meats ............................................ 100
SECTION SEVEN: SPREADS ................................................... 102
Introduction .........................................................................................102
Relevant Product Market ......................................................................102
Relevant Geographic Market ................................................................ 107
Butter................................................................................................... 108
Spreads ................................................................................................ 108
Conclusions .......................................................................................... 117
SECTION EIGHT: CHEESE...................................................... 118
Introduction .........................................................................................118
Relevant Product Market ......................................................................118
Merger Notification M/08/009 – Kerry/Breeo
ii
Relevant Geographic Market ................................................................ 121
Natural Cheese..................................... ................................................122
Conclusions .......................................................................................... 126
Processed Cheese................................................................................. 126
Conclusions .......................................................................................... 135
SECTION NINE: EFFICIENCIES............................................... 137
Introduction .........................................................................................137
Submissions of the Undertakings Involved .......................................... 137
Authority Investigation ........................................................................138
SECTION TEN: DETERMINATION ............................................ 148
Determination ...................................................................................... 148

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