Two companies owned by 2 multinational corporations investing in Ethiopia, Heineken Brewers SC and Meta Abo SC, have gone to litigation. Such was following the suit instigated by Meta Abo against Heineken.

The suit was filled to the tribunal of the Ethiopian Trade Practices and Consumer Protection Authority about a month ago. The statement of claim, according to The Reporter, stipulates Heineken intentionally hoarded Meta’s bottles and crates in order to sabotage Meta’s competitiveness. To prove this allegations, Meta has annexed the name of 20 witnesses.

Meta has claimed the alleged matter took place at such lucrative markets as Addis Ababa and the Southern Nations Nationalities and Peoples’ State. The company has also pleaded that Heineken has been engaged in the act starting from October 2016 to April 2017. In addition to this, Meta has requested for the tribunal to look into an earlier ruling in the Southern Nations, Nationalities and Peoples State whereby Heineken was found guilty of unfair trade practices.

As a consequence to this act, Meta claims to have suffered 9 million Birr loss and lost its competitiveness in the affected areas.

However, Heineken has failed to appear before the tribunal for its hearing. Following this the tribunal has ordered for the pleading be delivered to Heineken.

It was following privatization of government owned companies that the 2 global giants joined the Ethiopian market. Heineken bought Bedele and Harar breweries for 163.4 million USD while Diageo bought Meta Abo for 225 million USD.

Currently Ethiopia is home for 7 breweries with an annual production capacity of 12 million hectoliters.

Source: The Reporter