A boutique coffee
supplier has accused Australia's largest coffee company of anti-competitive
conduct.
AAP via news.com.au
February 21. 2011
Di Bella Coffee has gone
to the competition watchdog over what it says is an aggressive incentive
campaign by coffee giant Vittoria.
In a complaint to the
Australian Competition and Consumer Commission, Brisbane-based Di Bella says
Vittoria is offering its customers huge incentives, including up to a year of
free coffee, to switch suppliers.
Di Bella argues
customers who accept the incentives may be locked into damaging long-term
contracts.
"We do not believe
Vittoria is properly explaining the conditions and consequences for customers
signing up for long-term supply contracts," the owner and founder of Di
Bella Coffee, Phillip Di Bella, said today.
"We will be
strongly pursuing whatever legal channels necessary to have Vittoria fully
disclose all conditions and consequences of their offers to customers, in
particular whether they have built into their contract pricing recoupment of
the value of the incentives they are offering.
"We believe these
actions are highly unfair and uncompetitive and put a huge Australian industry
at risk."
Mr Di Bella said it was
a "classic example of a hugely resourced company trying to stamp out
competition".
Comment was being sought
from Vittoria.