The Commerce Commission has cleared Frucor Beverages Limited (Frucor) to acquire Simply Squeezed Holdings Ltd and/or Brownlie Brothers Ltd (Simply Squeezed).

Commerce Commission Chair Dr Mark Berry said that the Commission was satisfied that the proposed acquisition will not have, or would not be likely to have, the effect of substantially lessening competition in the national market for the manufacture/import and supply of fruit beverages.

The Commission considers that it is unlikely that the combined entity would have the ability to exercise market power because of:

 § the number of participants in the market;

 § evidence of recent entry and expansion (for both manufacture and import); and

 § the presence of supermarkets which have demonstrated they are willing to foster entry or expansion.

Public versions of the written reasons for the decision will be available as soon as practicable on the Commission's website www.comcom.govt.nz under the Clearances Register.

Background

Fruit beverages include fresh, chilled and ambient juices (packaged juice that can be stored at room temperature), nectars and fruit drinks.

Frucor is a subsidiary of Suntory Holdings Ltd and is the second largest supplier of non-alcoholic beverages in New Zealand behind Coca-Cola Amatil (NZ) Ltd. Frucor owns and manufactures the Just Juice, Fresh Up, Arano, Joo-C, Citrus Tree, McCoy and Twist fruit beverage brands.

Simply Squeezed is a Hawkes Bay based manufacturer of fruit beverages. Simply Squeezed owns or manufactures the Simply Squeezed, Allganics, Supreme Country Style and Bay Harvest brands.