Rooi­bos Ltd taken to book on dom­i­nance

The Star Early Edition - - BUSINESS REPORT -

ROOI­BOS has been re­ferred to the Com­pe­ti­tion Tri­bunal for pros­e­cu­tion on charges re­lat­ing to abuse of dom­i­nance by in­duc­ing rooi­bos tea farm­ers not to deal with rooi­bos tea pro­ces­sors it com­petes with. The Com­pe­ti­tion Com­mis­sion said this fol­lowed an in­ves­ti­ga­tion against Rooi­bos Lim­ited, the largest pro­ces­sor of rooi­bos tea in South Africa, af­ter re­ceiv­ing a com­plaint from a pro­ces­sor of rooi­bos tea in 2015. The com­mis­sion’s in­ves­ti­ga­tion fo­cused on Rooi­bos Lim­ited’s mo­nop­o­li­sa­tion of rooi­bos tea sup­ply from rooi­bos tea com­mer­cial farm­ers, in or­der to fore­close its com­peti­tors in the pro­cess­ing level of the value chain or pre­vent the ex­pan­sion of its ri­vals in the mar­ket. The fact that rooi­bos tea is only grown in a small geo­graphic re­gion, its source of sup­ply is lim­ited and ac­cess to it by rooi­bos tea pro­ces­sors is crit­i­cal for them to re­main com­pet­i­tive in the mar­ket. Al­though there are about 220 rooi­bos tea com­mer­cial farm­ers all based in the rooi­bos pro­duc­ing ar­eas in the Western and North­ern Cape, only a lim­ited num­ber of rooi­bos tea com­mer­cial farm­ers con­trib­ute the bulk of the to­tal pro­duc­tion of rooi­bos tea which is supplied to rooi­bos tea pro­ces­sors. – ANA

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