The European Commission has imposed a penalty of 20 million euros on Conserve Italia and its subsidiary Conserves France SA for the price cartel on canned vegetables, carried out for 13 years together with Bonduelle. An agreement detrimental to consumers and contrary to European competition rules.
The French canned vegetable giant, which itself has been grinding out profits from the illicit deal, did not pay the price for merely disclosing it. Instead, Conserve Italia announces an appeal, invoking its cooperative nature. A reflection on this issue is proposed again.
Conserves Italy – Conserves France – Bonduelle. A price cartel that lasted 13 years
The Commission found the existence of a price cartel that lasted more than 13 years, from 2000 to 2013. Conserve Italia, its subsidiary Conserves France, and Bonduelle have pursued agreements to divide the market and fix prices for green beans, peas, pea and carrot mix, and canned mixed vegetables. (1)
The three companies complicit in the cartel settled, in 2019. And Bonduelle got the large penalty (€ 250 million) waived for disclosing the wrongdoing. (2)
Bonduelle by the way had already been fined 30 million euros in 2014 for another price cartel. The case involved canned mushrooms and was reported by the Dutch accomplice Lutèce, therefore pardoned with a zero fine. (3)
Conserve Italia rejects the verdict
Conserve Italia announces appeal against European Commission decision. In her own statement, she states that she cooperated with the investigation in 2013 and rejected a plea deal in 2019 for the same reasons that convince her to oppose it today.
In announcing the appeal, the giant expresses ‘strong disagreement with the analysis of the regulatory peculiarity of a second-tier Italian agricultural consortium, such as Conserve Italia‘.
Conserve Italy, balance sheet in the red
Conserve Italia società cooperativa agricola is an Italian consortium of cooperatives based in San Lazzaro di Savena (BO). Its best-known brands are Valfrutta, Yoga, Derby, Jolly Colombani, Cirio, and Mon Jardin. The latest balance sheet, closed as of 6/30/20, records:
– a loss for the year, amounting to €14.3 mln (was -3.9 mln as of 6/30/19), despite ‘generous’ inventory estimates (€150.6 mln),
– total payables € 525.3 m, of which € 151.7 m owed to suppliers of goods and services and € 41.4 m owed to shareholders.
The cooperative shield
Conserve Italia’s defense argument in the face of the price cartel allegation is based on the cooperative nature of the group. A status that the European Commission allegedly ignored in assessing the case and setting the penalty.
However, the idea that cooperatives are exempt from compliance with the rules protecting competition and weaker contractors (in this case, consumers) deserves reflection. Isn’t the law the same for everyone?
Unfair trade practices, the dual track
The UTPs – Unfair Commercial Practicesdirective, dir. EU 2019/633 – aspires to protect weak contractors, i.e., suppliers of agricultural and food commodities, against unfair commercial practices put in place by their customers in industry and large-scale retail trade (GDO).
The draft legislative decree for its implementation in Italy, moreover, as has already been denounced, aspires to exclude from its scope sales by farmers to cooperatives and producers’ organizations (POs) of which they are members. (4)
Cui prodest?
Marta Strinati and Dario Dongo
Notes
(1) European Commission. Antitrust: Commission imposes €20 million fine on Conserve Italia for participation in vegetable canning cartel. 19.11.21 https://ec.europa.eu/commission/presscorner/detail/it/ip_21 _6164
(2) European Commission. Antitrust: Commission fines Coroos and Groupe CECAB €31.6 million for participating in canned vegetables cartel. Release of 9/27/19 https://ec.europa.eu/commission/presscorner/detail/it/ip_19_5911
(3) European Commission. Antitrust: Commission fines three canned mushroom producers € 32 million for cartel agreement. Communiqué dated 6/25/2014 https://ec.europa.eu/commission/presscorner/detail/en/ip_14_727
(4) Dario Dongo. Unfair trade practices, new decree outline. GIFT(Great Italian Food Trade), 7.11.21 https://www.greatitalianfoodtrade.it/mercati/pratiche-commerciali-sleali-nuovo-schema-di-decreto
Professional journalist since January 1995, he has worked for newspapers (Il Messaggero, Paese Sera, La Stampa) and periodicals (NumeroUno, Il Salvagente). She is the author of journalistic surveys on food, she has published the book "Reading labels to know what we eat".
Dario Dongo, lawyer and journalist, PhD in international food law, founder of WIISE (FARE - GIFT - Food Times) and Égalité.
