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Coffee capsule supplier Caffeluxe admits to price fixing

It has emerged that Caffeluxe threatened not to supply Global Coffee after a discount it made to Checkers Stores in 2014 if Global Coffee did not increase its price to the agreed shelf price.

Caffeluxe coffee. Picture: www.caffeluxe.com.au

JOHANNESBURG - The Competition Tribunal says Secret River Trading (trading as Caffeluxe) has admitted to fixing the prices of coffee capsules to retail customers.

The Competition Commission says it has emerged that Caffeluxe threatened not to supply Global Coffee after a discount it made to Checkers Stores in 2014 if Global Coffee did not increase its price to the agreed shelf price.

The commission initiated a complaint on 29 July 2015.

The commission said: “In terms of an agreement in effect between 2013 and May 2014, Global Coffee was precluded from undercutting Caffeluxe when selling coffee capsules to grocery retail outlets.”

Caffeluxe has admitted to the contravention and will pay an administrative penalty of R750 000, payable in tranches.

The Commission says it is not seeking any relief against Global Coffee Export.