Wholesaler accuses Ölgerðin of pushing Red Bull out

Steindal managing director Friðjón Hólbertsson says Icelandic drinks company Ölgerðin used restrictive agreements and other tactics to hinder sales of Red Bull, according to mbl.is, which reported on a segment aired by RÚV’s Kveik programme.

Hólbertsson said Ölgerðin had subjected his wholesale company to “mild bullying” after Steindal took over the Icelandic distribution rights for Red Bull in 2024. He said Ölgerðin employees initially removed Steindal’s Red Bull advertisements from grocery stores and moved the drink to the back of shops.

He also alleged that Ölgerðin had recently focused on placing its own energy drink, Eilíf Orka, in bars and nightlife venues instead of Red Bull, using exclusive agreements. Two of Iceland’s largest nightlife venues had told him that Ölgerðin paid them one million Icelandic krónur not to sell Red Bull, he said. About half of the bars had stopped doing business with Steindal in recent months, according to Hólbertsson.

He said the agreements extended beyond bars. A deal between Ölgerðin and the Icelandic Football Association prevented Steindal from advertising Red Bull at football matches in Laugardalshöll, he said. He had also heard of similar arrangements with outdoor festivals and student associations. Kveik showed an agreement in which a university student association committed not to do business with other drinks suppliers. The agreements covered alcoholic and carbonated drinks as well as energy drinks.

Hólbertsson’s allegations come as the Competition Authority investigates possible market manipulation by Ölgerðin. The authority searched the company’s headquarters shortly before the programme aired, after competitors raised concerns about its business practices.

Misuse of a dominant market position is prohibited under Icelandic competition law, but Ölgerðin has not formally been designated as dominant in the drinks market. The Competition Authority has said the company has a high share of both alcoholic and non-alcoholic drinks, noting that a share above 50% creates a legal presumption of dominance and that Ölgerðin’s share reaches as much as 80% in some parts of the market.