Cade condemns flexible packaging cartel

At the July 4 trial session, CADE’s Tribunal convicted eight packaging manufacturers, eight individuals and two trade associations for the involvement in the cartel known as the flexible packaging cartel (Administrative Proceeding No. 08012.004674/2006-50). The fines totaled over 305 million Reais, with the larger ones to Inapel Embalagens Flexíveis (57 million Reais), Embalagens Flexíveis Diadema (58 million Reais) and Converplast Embalagens (65 million Reais). The Tribunal, in turn, unanimously closed the probe in favor of the companies Itap Bemis, Bafema Indústria e Comércio, Shellmar Embalagem Moderna, Tecnoval Laminados Plásticos Ltda., Zaraplast and eight related individuals, since there was no evidence of their participation.

The conduct took place from 2001 to 2006 and aimed at setting minimum prices and dividing the market. During this period, the associations Associação Brasileira de Embalagens Flexíveis – ABIEF and Associação Brasileira dos Fabricantes de Embalagens Laminadas – ABRAFLEX coordinated the sector. Their intention was to integrally pass the increases on the raw materials cost to the end-consumers: large companies in the food, pharmaceutical and hygiene sectors, such as Warner-Lambert, Danone, Unilever, Kraft-Suchard, Preservativos Ola and Sanofi.