Ukraine anti-trust watchdog opens case against Roshen

The Anti-Monopoly Committee of Ukraine (AMCU) has opened a case against the Roshen group of companies (Roshen Confectionery Corporation) on the grounds of abuse of monopoly position on the syrup market.

Roshen is Ukraine's largest producer of corn syrup in Ukraine. In 2018-2019, the group of companies had signs of a monopoly position on the market, the AMCU press service said on its website on August 21.

"According to the information available to the AMCU, in its business activities, the Roshen group of companies set different prices in 2018, as well as different conditions for the purchase of syrup for a certain group of consumers, namely confectioneries," the report said.

Essence of claim

In 2019, Roshen strengthened its market power due to the ban on imports of syrups from Russia, while increasing prices of syrups of its own production for all buyers.

"At the same time, during the probe that preceded the initiation of the case, the AMCU established no objective grounds for price hikes," the press service said.

Read alsoUkrainian media outlet names most expensive national brandsSuch actions by Roshen with regard to counterparts on the confectionery market could lead to the prevention, elimination or restriction of competition, the statement notes.

What is Roshen

Roshen Corporation is one of the largest Ukrainian confectionery manufacturers, producing 450,000 tonnes of confectionery annually. It was founded by ex-President of Ukraine Petro Poroshenko.

Roshen has a factory in Kyiv, two production sites in Vinnytsa, a factory in Kremenchuk (Ukraine), two production sites at Lipetsk confectionery factory (Russia), Klaipeda confectionery factory (Lithuania), Bonbonetti Choco Kft (Budapest, Hungary), as well as Bershadmoloko butter and milk factory, which supplies raw milk to the corporation's factories.

Litigation

On May 25, 2020, it was reported that Roshen was suing a Russian company over the Romashka (Chamomile) candy label.

On January 29, 2020, it became known that Roshen was in litigation with an ice cream maker over the Kyiv Cake brand.

In September 2019, Roshen sued for the exclusive right to use red ribbon in cake packaging.