High Court dismisses Accra Brewery motion against Guinness

Accra (Greater Accra) 29 May '99

An Accra High Court on Friday ruled that Guinness Ghana Limited (GGL) can continue to enter into agreement with retail outlets in the sale of its alcoholic and non-alcoholic beverages.

This is because the execution of the 'Guinness means profit' agreement initiated by GGL to promote sales and marketing of its products is "Legal in a free market environment which must be respected by the court".

The court, presided over by Mr Justice A.A. Benin, a Court of Appeal judge, gave the ruling when he dismissed a motion for interim injunction filed by Accra Brewery Limited (ABL) against GGL over the agreement.

ABL filed the motion in March, this year, asking the court to restrain GGL from entering into such or any further agreements with retail outlets until the determination of a writ it filed against GGL over the same issue.

Giving reasons for the ruling, Mr Justice Benin said ABL did not raise any serious issues to show that GGL's agreement amounted to restraint of trade or trade monopoly.

The judge said ABL did not disclose how much it was earning before the agreement was made; neither did it say how much it is earning now for it to seek an injunction and damages against GGL.

The court said GGL's agreement is lawful in a free market and consequently dismissed the motion.

It did not award any costs and adjourned the hearing of the substantive case 'sine die'.

On May 14, this year, Mr William Fugar, counsel for ABL, argued that the agreement is an unfair business advantage over GGL's competitors and as such contrary to public policy.

Mr Sam Okudzeto, attorney for GGL, in reply, said there is no law in Ghana that prevents his client from having an exclusive distribution agreement with some retail outlets with incentive bonuses.

GRi../