A Competition Council reports reveals that French dairy giant Lactalis will have to sell LaDorna butter brand to a third-party for nine years, economica.net informs
The obligation comes as a result of the takeover of Covalact, which improperly consolidates its position on the butter market.
After taking over, Lactalis / Covalact holds in its portfolio more than half of the producers’ brands, namely 6 brands under which they sell butter, out of the 11 available at this time, without the distributor brands (which are sold only in specific stores).
On the request of Romania’s anti-trust body, BSA International SA, the owner of the French group Lactalis company, has undertaken to grant the exclusive license for LaDorna butter to a third party for five years.
Moreover, the third party must start the rebranding for LaDorna butter product with its own brand after a period of 30 months from the start of the license period so as to be able to transfer the LaDorna clients to its own brand until the expiration of the license period. The license period will be followed by a 4-year period during which the Lactalis group will not be entitled to use this mark for the butter product.