guia prático do cade - Conselho Administrativo de Defesa Econômica

One of the major objectives of the ruling was to allow the almost immediateentry of new participants in the market, without incurring all the costs associatedwith the creation of a distribution chain, construction of a manufacturing chainand the establishment of a new brand, as well as providing access for small breweriesin AMBEV’s distribution.Thus, as set out in article 54 of Law Nº 8.884/94, on the grounds of the structuralmeasures imposed by CADE, the efficiencies invoked and since the benefitsalleged fulfill the conditions stipulated in the legislation hereinbefore mentioned,CADE authorized with restrictions the creation of Companhia de Bebidas dasAméricas – AMBEV.Post-DecisionAt the time of publication of this practical guide, the last report delivered byAmbev was still under analysis.The Canadian company Molson Inc. acquired the Bavaria brand. However, thecompany terminated the contract of distribution that had been previously signed,based on the prerogative of item 52, Clause X, of the referred instrument. Shareddistribution chains in relevant geographic markets were used by Dado Bier, thecompany who won the public offer referring to compliance with this clause.Employment details presented by the company in 2004 showed that there wasan increase of about 15% in relation to the year of operation, which means thatafter the adjustments resulting from the creation of AMBEV, the company growthcreated a net gain in employment.Concerning market share, the data presented by the enterprise shows a smalldownward trend in AmBev’s market share in all relevant markets (request for confidentiality).Among AmBev’s brands, Antarctica has shown the largest drop in the volumeof sales in relation to the 2nd semester of 2000. Also, it is noted that the share of theBavaria brand has oscillated with a downward trend in every relevant market. Onthe other hand, Schincariol and other smaller brands have shown growth trends(request for confidentiality).Concerning price increases, the accumulated national Consumer Price Index(CPI) between March 2000 and June 2005 was 58.1%. By comparing the accumulatednational Consumer Price Index (CPI) with the increase in average pricesinformed by AmBev it can be seen that the increase in the price of AmBev’s prod-CADE PRACTICAL GUIDE159