Frito-Lay has received a hefty fine for acting to ensure Turkish retailers only stocked its salty snack brands and not rival products.
The Turkish Competition Authority has issued Frito-Lay with a fine totaling 17.9m Turkish Liras ($8.6m) following a 15 month investigation into the snack major’s activity with Turkish retailers.
Speaking to BakeryandSnacks.com, a representative from the country’s competition authority said that Frito-Lay was engaging in practices in order to be sold as a single salty snack brand in retail shops, a move that violated competition laws.
"It was trying to convince the retailers not to sell rival brands," he said.
The initial decision and fine have been issued to Frito-Lay, but a more detailed ‘reasoned decision’ will be sent to the company once compiled by the authority. This will include all the reasoning behind the authority’s decision to fine the snack giant.
Frito-Lay has one month to pay up once it has received the document.
Frito-Lay move to defend?
Frito-Lay spokesperson Jeff Dahncke told this site that the company is awaiting the documents from Turkey’s competition board.
He defended the company’s business stance when it comes to regulations. “PepsiCo has strong policies in place to achieve compliance with the laws and regulations everywhere we do business.”
The case has been opened to judicial review and Frito-Lay has the right to appeal against the decision.