French authorities conducted raids last week of at least two glass packaging companies as part of an investigation into possible anticompetitive practices.
Orora Limited issued a news release today detailing unannounced visits by France’s Autorité de la concurrence, or Competition Authority, on Thursday and Friday at its Saverglass business’s headquarters in northern France. Similarly, Verallia issued a news release Friday confirming the regulator “carried out visits and seizures” on March 27 at its company headquarters in a Paris suburb.
Beverage industry participants in France initiated a complaint over price increases that prompted the agency’s probe of the glass packaging industry, according to Orora’s release. It says only a small number of complainants are Saverglass customers.
The Competition Authority confirmed in its release on Friday that it carried out unannounced inspections “at the premises of companies suspected of having implemented anticompetitive practices in the sector for the manufacture and marketing of glass packaging.” It does not disclose the names of companies under investigation and noted that such inspections do not imply guilt, as guilt “can only be established following an investigation on the merits.”
Verallia said it is cooperating with the authority’s investigation and that it “wishes to remind that compliance with regulations and business ethics are at the core of Verallia's values.” It also echoed the agency’s statement about not assuming guilt, saying that “such an inspection does not imply that Verallia is involved in any anti-competitive behavior.”
Orora also confirmed that its leadership cooperated with the inspectors and provided the requested data and other information. The company will continue to cooperate with the investigation, according to the news release.
Orora said that the investigation relates to a period of time prior to its ownership of Saverglass; Orora completed that acquisition in December 2023. The period in question “was marked by major events including the Covid pandemic and the start of the war in Ukraine in February 2022, which led to input costs for glass container production including energy, key raw materials and gas increasing significantly, as well as increased freight costs in an environment of very high inflation across Europe,” it said.
“The Saverglass leadership team is confident appropriate business practices have been followed, operating independently from other glass packaging manufacturers. Orora, and Saverglass, uphold strong standards of integrity at all times, with integrity being one of the company’s core values as well as having a strong commitment to competition law compliance,” according to Orora’s statement.
These types of investigations “typically require years to progress,” said Orora’s statement.
Glass packaging markets tend to be regional. Industry participants and associations have long touted the recyclability of glass and that recovered glass is rarely exported or imported. As such, it remains to be seen whether impacts from the investigation in France will remain isolated or stretch into the United States.
