96/435/EC: Commission Decision of 16 January 1996 relating to a proceeding pursuant to Council Regulation (EEC) No 4064/89 declaring a concentration to be compatible with the common market and the functioning of the EEA Agreement (Case No IV/M.623 Kimberly- Clark/Scott) (Text with EEA relevance) (Only the English text is authentic)

• CELEX: Regulation (EEC) No 4064/89
• Articles: 3

Article 1

Subject to the full compliance with all conditions and obligations contained in Kimberly-Clark's commitments vis-à-vis the Commission as set forth in paragraphs 233 and following above, the concentration notified by Kimberly-Clark on 8 August 1995 relating to the acquisition of Scott Paper Company is declared compatible with the common market and the functioning of the EEA agreement.

Article 2

This Decision is addressed to:

KIMBERLY-CLARK CORPORATION

PO Box 619 100,

Dallas, TX 75261-9100,

USA

Done at Brussels, 16 January 1996.

For the Commission

Karel VAN MIERT

Member of the Commission

(1) OJ No L 395, 30. 12. 1989, p. 1. Corrigendum: OJ No L 257, 21. 9. 1990, p. 13. Merger Regulation.

(2) OJ No C 213, 23. 7. 1996.

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(10) The Great Britain population corresponds to about 97 % of that of the UK. The Commission has been unable to obtain full and consistent data for Great Britain only, although it understands that Nielsen data is prepared on a Great Britain basis. The difference between the position for the island of Britain compared to the full UK figures is not considered significant so that UK and Great Britain data has been used interchangeably in the text to reflect the Great Britain position.

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(15) The 20,5 % imports from Finland which are quoted at paragraph 89 concerned only imports of parent reels.

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(28) In fact, overall, the UK imports about 150 000 tonnes, but it also exports slightly over 50 000 tonnes of which almost half goes to Ireland.

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(39) Opposite the Great Britain position, there appears to be an inconsistency in the manner in which the parties attribute branded sales in Italy. The notifying parties have informed the Commission that Kleenex products [business secret] by an independent third party in Italy, namely Carrara. According to the parties [business secret].

In Italy, therefore, the parties attribute sales to the manufacturer and not the brand owner, whereas in Great Britain for private-label sales, the parties attribute sales to the brand owner, i.e. the retailer and not the manufacturer. This appears inconsistent.

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(56) This is only true for the larger British market as neither Kimberly-Clark nor Scott supply private-label products in Ireland, where Jamont is by far the leading private-label supplier.

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(60) The Commission recognizes that promotional efforts can attract a significant number of users to switch from private-label products to Andrex for the duration of the promotional campaign. However, there remains an underlying and substantial class of regular Andrex purchasers who remain loyal irrespective of the availability or not of special offers. Moreover, the fact that there is a large number switching out of private label to Andrex or Kleenex on a temporary basis, only serves to underscore the reputational characteristics of the brand with non-regular purchasers.

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Schedules & Appendices

ANNEX

Table 1 UK tissue products private label evolution 1990 to 1995

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>REFERENCE TO A GRAPHIC>

Table 2.1 Consumer tissue brands

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Table 2.2 Consumer tissue brands

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Table 2.3 Consumer tissue brands

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Table 2.4 Consumer tissue brands

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Table 3

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Table 4

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Table 5 Advertising expenditure on UK consumer tissue products

Toilet-tissue

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Facial tissues

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Kitchen towels

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Table 6 UK 1994 production and conversion capacity

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Table 7.A 1994 UK tissue products market shares (parties and main competitors)

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Table 7.B 1994 Ireland - tissue products market shares (parties and main competitors)

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Table 7.C 1994 Combined UK and Ireland - tissue products market shares (parties and main competitors)

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Notes UK:

All tables are based on 1994 figures, measured in value, with respect to the total (branded product and private label) market.

Table 1: Private label shares.

Table 2: Branded products shares (here private label sales are attributed to the brand owner).

Table 3: Branded and private label shares (here private label sales are attributed to the manufacturer). Total market estimates are based on Nielsen data adjusted by the parties (letter of 29 August 1995). Percentages of private label were provided by the parties in their letter of 20 September.

Source: Notification and parties' correspondence.

Notes Ireland:

All tables are based on 1994 figures, measured in value, with respect to the total (branded product and private label) Republic of Ireland market.

Table 1: Private label shares.

Table 2: Branded products shares (here private label sales are attributed to the brand owner).

Table 3: Branded and private label shares (here private label sales are attributed to the manufacturer).

Source: Notification and parties' correspondence. (Letters of 8 September, 17, 26 and 29 October).

Table 8

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Table 9 UK brand loyalty across major brands and categories

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Table 10

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Table 11

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Based on 1994 figures, measured in value, with respect to the total (branded products and private label) market.

Source: Notification, parties' correspondence and answers to Commission request for information.