Santé sells Tuborg Christmas beer for 20% less

Icelandic alcohol retailer Santé has begun selling Tuborg Julebryg, brewed in Denmark and imported directly, for 20% less than the price at state alcohol retailer ÁTVR, mbl.is reports.

A 330-millilitre can costs 359 krónur at Santé, compared with 449 krónur at ÁTVR. Customers must buy a case of 12 cans from Santé.

Santé owner Arnar Sigurðsson said the company had spent about three years trying to buy the Danish beer in container loads through intermediaries distributing products in Europe. Two deals were agreed, he said, but both fell through on Tuborg’s instructions, citing a “local licensing agreement.”

Sigurðsson said pallets of the Danish beer were waiting in Santé’s warehouse. He argued that preventing the sale could breach competition rules, saying that while a producer may appoint an agent for a specific territory, it cannot prohibit a distributor from fulfilling an order from a buyer in another country. He said such a restriction is considered a serious breach under EU rules on vertical agreements, which also apply in Iceland as part of the European Economic Area.

Sigurðsson said ÁTVR accepts products at the price charged by the wholesaler and then adds its own markup. Santé may bring in more products, he added.