The Australian Competition and Consumer Commission (ACCC) has called for comment on Heinz’s proposed acquisition of Rafferty’s Garden.
Heinz dominates the Australian bably food sector, currently accounting for around 39 per cent volume of the market. It is the only manufacturer of canned wet infant food in Australia and the nation's leading manufacturer of glass jar-packaged infant food.
Rafferty's Garden holds around 16 per cent of the sector and supplies dry infant food, which includes fruit bars and rice cakes, as well as wet food; however, none of its products are packaged in cans or glass jars.
“The ACCC’s preliminary view is that the proposed acquisition would result in the combination of the two largest suppliers of wet and dry infant food in Australia and would remove Rafferty’s Garden as one of Heinz’s closest and most vigorous and effective competitors in the wet and dry infant food markets,” ACCC chairman Rod Sims said.
“The ACCC is therefore investigating whether the removal of Rafferty’s Garden as a competitor would be likely to substantially lessen competition, paying particular attention to the height of barriers to entry or expansion and the degree of supermarket countervailing power.”
The ACCC invites further submissions from the market in response to the Statement of Issues by 28 February 2013. Consequently, the ACCC’s final decision will be deferred until 21 March 2013.
