The de Neuville chocolatier has been fined more than 4 million euros by the Competition Authority.
The competition authority has fined French chocolatier de Neuville – and its parent company, Sevensia – 4.07 million euros for restricting the commercial freedom of its franchisees, it said on Thursday (15 February).
Following an inquiry report sent by the Directorate General for Competition, Consumer Affairs and Fraud Control (DGCCRF), “The Competition Authority allows the de Neuville company to apply practices aimed at restricting, on the one hand, the online sale of de Neuville brand chocolates by its franchisees and, on the other hand, the sale of the latter to professional customers »A press release suggests the competition watchdog.
Between 2006 and 2014, the Authority notes that franchise agreements entered into by De Neuville expressly prohibited franchisees. “Mail Order or Internet Sales”. This clause subsequently appeared in annexes to franchise contracts until 2019.
The franchisee’s commercial freedom, particularly regarding operations to canvass new professional clients, was very strictly controlled by de Neuville between 2006 and 2022. “Franchisees first had to approach professional customers located in their own catchment area”The authority notes, adding: “They can prospect other regional areas only when the catchment area allotted as per the agreement is fully prospected. »
“Considering duration of practice” – Thirteen years for restrictions on online sales and sixteen years for limitation of franchisee’s commercial freedom – “And the membership of the de Neuville company in the group, the authority approves the de Neuville company jointly with its parent company, Sevensia, with a fine of 4.068 million euros”Independent Institute Conclusion.
A major player in chocolate distribution in France
With 154 points of sale listed by the competition watchdog in February 2022, 90% operated by franchisees, De Neuville is the third exclusive chocolate distribution network in France and the first French franchise chocolate network.
Although significant, the fine imposed on de Neuville and Cevencia on Thursday is significantly less than the fine imposed on luxury watchmaker Rolex in December (91.6 million euros), also accused of banning online sales of its products for more than ten years.
However, the competition authority announced a similar penalty in December regarding the Marries Freres group, one of the main producers and sellers of high-end tea in France, imposing a financial penalty of 4 million euros for a practice agreement in the luxury tea sector. She felt the group had “For almost fifteen years, by restricting the commercial freedom of its distributors, on the one hand, from selling its brand of products online and, on the other hand, from reselling its products to other resellers” .
Cevensia is an international, family-owned food group, which owns cheese brands in 120 countries such as Caprice des Dikes, Saint-Albre or Saint-Moret in France, Garamont or Milkana in Germany, Rogue Creamery in the United States or Polengi in Brazil, owner of the Valhona chocolate factory. But, which employs more than 25,000 people and has an annual turnover of 7.2 billion euros, its website clarifies.
