Peters Ice Cream has been accused of stopping other distributors from selling single-wrapped ice creams at petrol stations and convenience stores.
Australasian Food Group, trading as Peters Ice Cream, has been accused of stopping other distributors from selling single-wrapped ice creams at petrol stations and convenience stores.
The Australian Competition and Consumer Commission alleged Peters had engaged in “exclusive dealing” for about five years by way of an agreement with distributor PFD Food Services, whose customers include cafes, hotels, and convenience and fast food outlets.
The agreement included a condition that PFD could not distribute competitors’ products in certain locations around Australia.
Repeat requests from PFD to distribute other ice cream products were rejected by Peters.
The ACCC alleged that, for new entrants, PFD was the only merchant capable of distributing single-wrapped ice cream products to national petrol and convenience retailers in a commercially viable way since other potential distributors did not have a national frozen food route to those retailers.
It was also not commercially viable for new entrants to incur the cost of establishing their own distribution network, the ACCC argued.
ACCC chair Rod Sims said the agreement between Peters and PFD raised barriers of entry.
“We also allege that a substantial purpose of Peters engaging in the conduct was to protect its market position from competitors, as one of only two major suppliers of single-wrapped ice creams, who together held a combined market share of over 95 per cent during the relevant time,” Mr Sims said.
“We allege that this conduct reduced competition, and may have deprived ice cream lovers of a variety of choice or the benefit of lower prices when purchasing an ice cream at one of these stores.”
Peters has since entered into a new agreement that does not include a term restricting PFD from distributing competing ice cream products.
The ACCC says it is seeking declarations, pecuniary penalties, a compliance program order and costs.
Peters, founded in 1907 in NSW, is owned by French company R&R, which acquired the business from Sydney-based Pacific Equity Partners in 2014 for a reported sum of $400-450 million.
Peters' brands include Drumstick, P Maxibon, Connoisseur, Frosty Fruits and BillaBong – most of which were distributed under the agreement with PFD.
