Cartel Office decides: Discounters are allowed to take over suppliers

Status: 01.12.2022 1:57 p.m

Altmühltaler Mineralbrunnen and Erfurter Pasta are among the major manufacturers of private labels in Germany. Nevertheless, the cartel office does not see competition as being endangered by the takeovers of Aldi and Lidl.

The Bundeskartellamt has given the discounter Aldi and the Schwarz Group, which includes Lidl and Kaufland, the green light to take over food companies. Aldi Nord may, among other things, take over Altmühltaler Mineralbrunnen GmbH and Vitaqua GmbH, and the Schwarz Group may buy pasta manufacturer Erfurter Teigwaren GmbH, according to the antitrust authorities. The companies are important private label manufacturers in their regions for the German market.

Sufficient alternatives in the market

“When large retail chains take over food manufacturers, the question always arises from a competitive perspective as to whether there is a threat of foreclosure of the markets to the detriment of other producers or other retailers,” said the President of the Bundeskartellamt, Andreas Mundt. The cartel authority’s investigations had shown that there would still be enough alternatives on the market for dealers and manufacturers after the takeover.

Altmühltaler and Vitaqua produce and sell mineral water and non-alcoholic beverages as well as packaging material at the Treuchtlingen and Breuna locations. You are one of the largest manufacturers of private label mineral water drinks in Germany. However, Aldi has not yet been active in the production of mineral water beverages, so the takeover will not result in any addition of market shares in this market.

Entry into the pasta business

With a turnover of around 70 million euros, Erfurter Teigwaren GmbH is the largest manufacturer of private label pasta in Germany. So far, pasta production has also been new territory for the Schwarz Group.

According to the trade journal “Lebensmittel Zeitung”, the discounter Lidl, which belongs to the Schwarz Group, already produces chocolate, baked goods, drinks, ice cream, pasta and coffee for its own brands. Aldi already operates coffee roasters. The Bundeskartellamt announced that it would continue to monitor the competitive effects of so-called vertical integration, i.e. the concentration of manufacturers in the food retail sector.

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