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TMI Blog2025 (4) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... ke "SNJ 10000" and "British Empire" to name a few which are produced by particular distilleries, which impedes competitiveness of other beer brands in the market and discourages competition in business. 4. The Informant has alleged that TASMAC has formed a nexus with SNJ Breweries and few other breweries to purchase only particular beer brands from these breweries and sell through its 5000+ shops to consumers, while other beer brands are not given the opportunity to sell their products as liquor products are exclusively sold to public consumers through TASMAC. 5. The Informant has attached a white paper titled "TASMAC- Free Tamil Nadu", published by Tamil Nadu BJP president K. Annamalai as evidence to support the allegations. The white paper inter alia states that "SNJ continues to hold sway over the beer that is pushed to the market. Although there are 46 brands of beer in Tamil Nadu, only 4-5 brands are available for consumers - SNJ 10000 and British Empire made by SNJ Breweries are among the few options that consumers can choose from. Despite there being 46 brands of beer available, it is alarming to note that only a limited number, such as SNJ 10000 and British Empire produce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the date of the receipt of the order. 11. Meanwhile, vide email dated 18.11.2024, the Informant inter alia stated that - "As per the Tamil Nadu government owned exclusive liquor selling company - TASMAC, they are not providing the annual brand wise beer sold in the last three years, even when requested through right to information act..TASMAC management directed its district officers to provide the data, but most of the district officers did not provided the asked data, citing various reasons. This data is not available in the TASMAC website or in any public domain." The Informant requested the Commission to take necessary action to get the data to proceed further in the case. However, such data had already been sought by the Commission vide its order dated 12.06.2024. 12. Subsequently, the Commission considered the matter in the ordinary meeting held on 12.12.2024 and noted that no responses/comments have been received from the OP till date. The Commission directed that in the interest of justice, last opportunity may be provided to OP to file responses/comments as sought vide order dated 12.06.2024 within four weeks from the date of the receipt of the order. 13. The Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly places the indent to the manufactures, based on the formula as already explained above. Therefore, TASMAC is impartial in placing indents to the manufacturers." 16. Further, TASMAC vide its response has provided the data sought by the Commission vide order dated 12.06.2024 i.e. the list of manufacturers of beer and their respective brands, along with the quantity of beer procured from them and made available at the TASMAC retail outlets in Tamil Nadu (on a monthly basis), along with volume-wise share (in %) for each brand in the last 3 financial years. 17. It is noted that the Informant is primarily aggrieved by the TASMAC shops in Tamil Nadu who are selling specific brands of beer such as "SNJ10000" and "British Empire" only, over other beer brands available in the market and thus, is in violation of provisions of Section 4 of the Act. 18. The Commission observes that for an assessment of alleged violations by an entity, it has to pass through the touchstone of being an enterprise as defined u/s 2(h) of the Act. Enterprise Section 2(h) of the Act states that ""enterprise" means a person or a department of the Government, including units, divisions, subsidiaries, who o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hedule of the Constitution of India (i.e., the State List). Further, as per Item No. 51 of the State List, duties of excise on liquor is also a State subject. As such, each State/UT in India has its own unique method of regulating the sale of liquor (including beer) within its territory, leading to differences in pricing regulations and approvals, imposition of different taxes, different excise duties and differing terms of licensing, among others. 24. This variance in regulations and models of procurement and distribution of liquor from State to State make each State a possible distinct geographic market for the procurement and distribution of liquor. 25. In view of the relevant product market and the relevant geographic market delineated above, the Commission defines the relevant market as the "procurement, marketing, distribution and sale of beer in the state of Tamil Nadu". 26. The underlying principle in assessing dominant position of any enterprise in the relevant market is whether the enterprise in question can operate independently of the competitive forces prevailing in the relevant market or can it affect its competitors or consumers or relevant market in its favour. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant market of procurement, marketing, distribution and sale of beer in the state of Tamil Nadu. 31. It is noted by the Commission that as per the price list (as on 01.02.2024) available on the official website of TASMAC, out of 38 brands available from 6 suppliers, the only well- known brands that appear on the list are - Tuborg, Carlsberg, Kingfisher and Fosters. The price list does not include other commonly known brands such as Budweiser, Corona, Heineken, Bira, Hoegarden etc. Further, in the said price list, 21 out of 38 brands belong to three manufacturers i.e. United Breweries Ltd. (13 brands), SNJ Breweries Pvt. Ltd. (8 brands) and Kals Breweries Pvt. Ltd. (8 brands). 32. Further, upon perusal of information available in the public domain, some newspaper articles viz. news article published by Times of India on 16.05.2023 titled "There's no beer! TASMAC menu has 46 beer varieties, but only 4-5 at outlets" and an article by Times Now dated 31.10.2023 titled "Bira, Thunderbolt and More: Chennai Outlets to Sell Premium Beer Brands From November" appear to support part of the allegations raised above by indicating that only certain brands of beer are available at TASM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bserved that the combined share of Kals Breweries Pvt. Ltd. and SNJ Breweries Pvt. Ltd. has significantly increased in the last three financial years, from 40.22% in 2021-22, to 58.41% in 2022-23 and 56.76% in 2023-24. 36. It is further observed that among the few well-known brands such as Tuborg, Carlsberg, Kingfisher and Fosters mentioned in TASMAC's price list available on its website, only Kingfisher has a significant share in procurement. Following table depicts the share of the above mentioned brands in the last three years: Sl. No. Name of brand Share in procurement in 2021-22 Share in procurement in 2022-23 Share in procurement in 2023-24 1. Kingfisher 35.39 24.40 32.07 2. Tuborg 5.30 3.39 2.18 3. Carlsberg 1.12 0.34 0.15 4. Fosters 0.00 0.61 8.74 37. Therefore, it appears from the data provided by TASMAC that only a few brands dominate the share of its procurement of beer, and the well-known brands in TASMAC price list command a significantly lower share in procurement. 38. In consideration of the facts and circumstances of the present case, the Commission is of the prima facie view that TASMAC appears to be abusing its dominant position by limi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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