Peters Ice Cream cops $12m fine
AUSTRALASIAN Food Group, trading as Peters Ice Cream, has been ordered to pay a $12m penalty for anticompetitive conduct in relation to the distribution of ice creams sold in petrol stations and convenience stores.
The Federal Court on Friday handed the penalty in proceedings brought by the ACCC.
From November 2014 to December 2019, Peters Ice Cream acquired distribution services from PFD Food Services on condition that it would not sell or distribute competitors’ single serve ice cream products in various areas in Australia without its prior written consent, Peters Ice Cream has admitted.
Peters Ice Cream’s restriction on PFD covered Western Australia, Tasmania, South Australia (including Adelaide from August 2015), the ACT, Darwin and regional areas in NSW, Victoria and Queensland.
Peters Ice Cream is the owner of Connoisseur, Drumstick, Maxibon and Frosty Fruits brands and is one of two major manufacturers of single serve ice cream products sold in petrol stations and convenience stores.
PFD is Australia’s largest distributor of single serve ice creams and is able to reach more than 90 per cent of Australian postcodes.
“This is an important competition law case involving products enjoyed by many Australians,” ACCC chair Gina Cass-gottlieb says. “This case is a reminder to all businesses of the serious and costly consequences of engaging in anticompetitive conduct.”
Peters Ice Cream admitted during the case that if PFD had not been restricted from distributing other manufacturers’ ice cream products, competitors may have entered the market.
Potential competitors for single serve ice creams included Bulla and Gelativo.