Join our daily newsletter At The Bell to receive exclusive market insights
- Beloved Australian brand, Peters Ice Cream, has been ordered to pay $12 million after using a distributor to stop competitors’ products being sold in convenience stores and petrol stations
- Peters purchased PFD Foods, Australia’s largest distributor of ice-cream, on condition that PFD would not sell or distribute competitors’ ice-cream products around Australia
- Peters owns a number of popular lines such as Connoisseur, Drumstick, Maxibon and Frosty Fruits
- PFD was approached by other ice-cream manufacturers to distribute new products, however, PFD said it couldn’t due to exclusive arrangements with Peters
Australasian Food Group, trading as Peters Ice Cream, has been ordered to pay a $12 million penalty by the Federal Court, after using a distributor to stop competitors being sold in convenience stores and petrol stations.
Peters has admitted that for five years it purchased distribution services from PFD Food Services on condition that PFD would not sell or distribute competitors’ single serve ice-cream products around Australia without getting written permission.
As a result, competition was substantially lessened for manufacturers of single serve ice-cream and frozen confectionery.
Peters owns a number of favourite ice-cream brands such as Connoisseur, Drumstick, Maxibon and Frosty Fruits. It is one of two major manufacturers of single serve ice-cream products sold in Australian petrol stations and convenience stores.
PFD is Australia’s largest distributor of ice-creams and can reach 90 per cent of Australian postcodes.
“We took this action because we were concerned that Peters Ice Cream’s conduct could reduce competition in this market and impact on the choice of single serve ice-creams available to consumers,” ACCC Chair Gina Cass-Gottlieb said.
“Peters Ice Cream admitted that, if PFD had not been restricted from distributing other manufacturers’ ice-cream products, it was likely that one or more potential competitors would have entered or expanded in this market.”
Competitors of the company include Bulla, Gelativo and Pure Pops. PFD was approached by other ice-cream manufacturers to distribute new single serve ice-cream products, however, PFD said it couldn’t due to the exclusive arrangement with Peters.
“This case is a reminder to all businesses of the serious and costly consequences of engaging in anti-competitive conduct,” Ms Cass-Gottlieb said.
“The ACCC is targeting exclusive arrangements by firms with market power that impact competition as one of our compliance and enforcement priorities for 2022-23.”
