Competition Bureau

Beer Bottles

September 14th, 2006

The Competition Bureau initiated an inquiry on October 21, 2003, following a complaint alleging anti-competitive acts through the Standard Mould Bottle Agreement (the “SMBA”). The agreement requires that signatories (brewers) exclusively use the Industry Standard Bottle (ISB) for domestically produced products in non-metal containers under 600 ml. The allegations were that the SMBA was being used to entrench the dominant firms’ market power in the Canadian beer industry contrary to section 79 of the Competition Act. It was argued that having the ability to bottle beer in both ISBs and non-ISBs is a key method of competing in the beer industry. Non-ISBs are of a different colour (e.g. clear, green) or shape (shorter or taller) than the amber long-necked ISB.

In order to pursue an abuse of dominance case, the Bureau must be satisfied that a firm or group of firms that possesses market power is engaging in anti-competitive behaviour that is, or is likely to have, a significant impact on competition.

The Bureau did not find any clear evidence of a substantial lessening or prevention of competition as required under section 79 of the Act. As such, the inquiry was discontinued in August 2006.