Butter for the army with impurities: The AMCU fines food suppliers for the Armed Forces for almost UAH 20 million
30 December 18:33
The Antimonopoly Committee of Ukraine has fined a producer and supplier of butter for the Armed Forces of Ukraine UAH 19.84 million, "Komersant Ukrainian" reports.
The reason is that the product supplied for the army’s needs contained non-dairy fats and did not meet the requirements of state standards, despite being labeled as “sweet cream butter.”
What is the violation?
According to the AMCU, on December 26, the Committee recognized the following actions as a violation of the legislation on protection against unfair competition:
- the manufacturer – Iva-Art LLC;
- the supplier – Asix Group LLC.
The companies disseminated false information about the name, composition and consumer properties of the products, as well as their compliance with the DSTU. In particular, the butter was labeled as butter with a fat content of 72.5% and 73.5%, although the actual composition did not meet these characteristics.
How the problem was discovered
The case was opened at the request of the State Enterprise State Logistics Operator, which purchased butter from Asix Group under a state contract to supply the Armed Forces of Ukraine.
The Mykolaiv Regional Laboratory of the State Service of Ukraine for Food Safety and Consumer Protection tested product samples taken directly from military units. The tests showed the presence of non-dairy fats, which, according to the AMCU, makes it impossible to classify this product as butter.
In addition, the Committee found that the packaging unreasonably stated compliance with DSTU 4399:2005.
Unknown manufacturer and risk to the market
Part of the butter with a fat content of 72.5% was produced by Iva-Art LLC. At the same time, the other part of the product, labeled as butter with a fat content of 73.5%, was produced by an unknown manufacturer, which was separately recorded by the Committee.
The AMCU noted that given the competitive nature of the butter market in Ukraine, misleading consumers could provide companies with undue advantages over other market participants.
The fine and previous violations
Based on the aggregate of violations, Iva-Art and Asix Group were fined a total of UAH 19.84 million.
This is not the first conflict between Iva-Art LLC and the Antimonopoly Committee. Back in 2020, the AMCU found similar violations regarding the false labeling of butter. The company was then fined UAH 2.8 million. The case went to the Supreme Court, which in July 2023 finally confirmed the legitimacy of the Committee’s decision.
