WRITTEN QUESTION No. 3916/98 by Viviane REDING Vertical barriers to trade in the beer sector
Date: 1999-01-04
Institutions: European Parliament, REDING
Subjects: European Commission, Luxembourg, beer, beverage industry, cessation of trading, competition law, domestic market, market-sharing agreement, proposal (EU), small and medium-sized enterprises

21.12.1999

EN

Official Journal of the European Communities

C 370/11

(1999/C 370/014)

WRITTEN QUESTION E-3802/98

by Sérgio Ribeiro (GUE/NGL) to the Commission

(22 December 1998)

Subject: Closure of the Nestlé factory in Matosinhos (Portugal)

According to Nestle’s Director of Public Relations, the company’s Longa Vida factory in Matosinhos
(Portugal) is to be closed and production is to be transferred to either France or Spain.

This decision will put over 100 workers out of a job and it follows on from other decisions taken by
Nestlé, which has already closed its Rajá and Findus factories and has already made approximately
70 workers redundant at its Longa Vida factory.

The decision is all the more significant in view of the fact that Longa Vida is a modern industrial plant
which has received financial support from the Portuguese Government and the European Union in order
to enable investment to be made which, over the last five years, has totalled over 3000 million escudos.

the
Since this is yet another case of relocation (in this particular instance within the territory of
Community) and since substantial amounts of Community support are apparently involved, would the
Commission say whether or not it is aware of the situation, whether there are any framework contracts to
which it is party or of which it is aware, and whether the Nestlé company has received any further
financial support in connection with its relocation?

Supplementary answer
given by Mrs Wulf-Mathies on behalf of the Commission

(3 May 1999)

Within the framework of the industry programme known as PEDIP I inside the first Community support
framework for Portugal during the 1989-1993 period, a project promoted by the firm Nestlé in
Matosinhos, Portugal, was approved by the Portuguese authorities.

Incentives of 380,000 euro were approved for the investment of which 240,000 euro were paid out and
140,000 euro decommitted. The amounts were co-financed by the European regional development fund at
a rate of 70 %. The period of validity of the contract signed by the Portuguese state and the promoter has
expired.

If the factory were to be closed there would be no contractual basis on which the Portuguese state could
seek any refund of the incentives.

According to information provided by the Portuguese authorities it has no official knowledge of any
transfer of the firm to a site outside Portugal.

(1999/C 370/015)

WRITTEN QUESTION E-3916/98

by Viviane Reding (PPE) to the Commission

(4 January 1999)

Subject: Vertical barriers to trade in the beer sector

As part of the planned reform of the application of the rules on competition laid down in the Treaty, it is
reported that the Commission is about to propose an overall reduction in the number of vertical barriers
to trade.

Does the Commission realise that the proposed threshold of 40 % of market share might result in the
closure of all the breweries in Luxembourg? Individual breweries there do have more than 40 per cent of
market share, so they will no longer be able to conclude exclusive contracts. However, competing
undertakings from the surrounding regions, which have less than a 40 % share of their domestic market
but whose production is far greater than the entire production of Luxembourg, will be able to conclude
such contracts. The small Luxembourg breweries will surely go under in the competition and survival war
fought by the ‘big names’ which have extensive resources. That cannot be the objective of the new rules,
and the Commission should realise this.