COCA-COLA has been banned from selling Schweppes tonic in Spain.

THE Commercial Court Number 8 of Barcelona has prevented the Red Parallel company from importing Schweppes tonic from the UK and distributing it in Spain.
The ban followed the judge’s ruling that Japanese firm Suntory was the only company with the right to sell Schweppes brand tonics in the country.
Barcelona-based Red Parallel had profited hugely from importing the tonic from the UK, and selling it in Spain at a lower price.
This lucrative business model saw the company shift 17.3m bottles, netting €5.9m in the process between 2009 and 2014.
A Red Parallel spokesperson said: “The only thing we did was buy English Schweppes tonic from English wholesalers. Therefore, merchandise was already in free circulation in the European Economic Area,” said the company following the ruling
This sentence has also obligated Red Parallel to pay compensation to Suntory for damages amounting to €293,480.
The tonic Schweppes was born in 1783 but was a late arrival to Spain, only entering the Iberian market in 1957.
The brand quickly became a market leader, with a 54.8% share, and experienced a strong increase in sales as the popularity of gin and tonic soared.
Suntory’s legal director María Rodríguez said: “The rights of the Schweppes brand in Spain are not exhausted.
“The only Schweppes tonic that can be marketed in Spain is that manufactured by Schweppes Suntory Spain or another company of our same group.”
The legal dispute, which began in 2014, looks set to continue with an appeal expected to be launched with Spain’s Supreme Court.

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Posted by on Sep 13 2019. Filed under Local News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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