Sugar companies fined 33m over cartel

14 October 1998

Sugar companies fined £33m over cartel

By FWi staff


BRITAINS two biggest sugar companies were fined a total of £33 million today after being found guilty of conspiring to inflate sugar prices artificially and fix production levels.

Officials at the European Competition Commission said British Sugar had instigated a cartel agreement with Tate & Lyle to ensure that British consumers paid more for sugar.

British Sugar was fined £28.2m. Its main competitor, Tate & Lyle, was fined £4m.

European officials said the two companies, which control 90% of the sugar market in Britain, had held numerous meetings in an effort to fix prices and rig the market.

Two British sugar distributors, Napier Brown and James Budgett, were fined £3 million each for their part in keeping prices high.

A British Sugar spokesman said there would be no effect on the price paid to farmers for sugar beet.