98/602/EC: Commission Decision of 15 October 1997 declaring a concentration to be compatible with the common market and the functioning of the EEA Agreement (Case No IV/M.938 - Guinness/Grand Metropolitan) (notified under document number C(1997) 3169) (Only the English text is authentic) (Text with EEA relevance)

• Articles: 2

Article 1

The concentration notified by Guinness plc and Grand Metropolitan plc, relating to the merger of all their business activities, is declared compatible with the common market and with the functioning of the EEA Agreement, subject to the condition of full compliance with the commitments made by the parties in their undertaking to the Commission as set out in section VI of this Decision.

Article 2

This Decision is addressed to:

Guinness plc

39 Portman Square

London W1H 0EE

United Kingdom

and

Grand Metropolitan plc

8 Henrietta Place

London W1M 9AG

United Kingdom.

Done at Brussels, 15 October 1997.

For the Commission

Karel VAN MIERT

Member of the Commission

(1) OJ L 395, 30. 12. 1989, p. 1; corrected version OJ L 257, 21. 9. 1990, p. 13.

(2) OJ C 329, 27. 10. 1998.

(3) The term 'whiskey` is used throughout to describe all whiskey types (Scotch, Irish, American, Spanish) both collectively and, except for Scotch, individually. For Scotch, the traditional spelling - without an 'e` is used.

(4) The terms 'on-trade` and 'off-trade` are commonly employed in the industry to distinguish the two retail channels: 'on-trade` that is, consumption on the premises where the product is purchased, comprises supplies to and from bars, restaurants, cafés and hotels (sometimes referred to as the 'horeca` (hotel/restaurant/café) sector); 'off-trade`, that is consumption away from the place of purchase: covers sales through general and specialised shops, supermarkets, retail grocers, and so forth.

(5) This version of the Decision has been edited to ensure that confidential information is not disclosed.

(6) Commission Decision 97/540/EC, Case No IV/M.794 - Coca-Cola Enterprises/Amalgamated Beverages GB (OJ L 218, 9. 8. 1997, p. 15), Case No IV/M.833 - Coca-Cola Company/Carlsberg AS.

(7) Parties' response to the 'Statement of objections`, p. 24.

(8) In 1995, Scotch whisky accounted for 95 % of an all-whiskey market, that is 2 541 thousand cases of a total of 2 654 thousand cases (Source IWSR 1995).

(9) The parties' estimates point to a figure of some [5-15 %] of their total sales between 1995 and 1997 (see 'Response to the statement of objections`).

(10) Commission Decision 85/562/EEC, Case No IV/30.570 - The Distillers Company, (OJ L 369, 31. 12. 1985, p. 19).

(11) OJ L 256, 7. 9. 1987, p. 1.