Brussels, 29/02/2000 (Agence Europe) - The European Commission has cleared the creation of a joint processing company for nut snacks between Granaria (Netherlands), Ültje (Germany) and Felix Snack (Germany). The parties will sell most of their products (peanuts, pistachio, nuts, etc) under distributor brand names and only make 20% of their turnover with sales under their own label.
European competition services felt that the joint venture's ability to impose price increases will be curtailed by: i) the purchasing practices of the big retailers, which include multiple sourcing and Europe-wide invitations to tender; ii) potential competition from new entrants, in particular third countries which supply nuts as ingredients to the food industry. The operation may therefore be approved without the risk that competition will be reduced.