PLANS by major drinks company Lanitis Bros Ltd. to move into the milk industry have sent shockwaves across the so-far regulated market.
Lanitis says it will be launching a new milk brand, sold in see-through recyclable bottles, in October. Established dairy products companies Christis and Charalambides, which have dominated the market, reacted strongly after Lanitis obtained a licence back in May to bottle and distribute milk.
The two companies argue that due to the nature of the industry – where supply of milk is regulated by the semi-government Milk Marketing Board (MMB) – price controls and supply quotas need to be maintained.
But Lanitis’ bold entry into the market, with its state-of-the-art, fully computerised premises, has caused the Commerce Ministry to consider liberalising the market.
After months of wrangling between the dairy producers, Lanitis were initially set to begin operations on September 1, but reduced milk production during the summer months meant the MMB gave priority to supplying cheese producers with outstanding orders.
For their part, Lanitis claim the “last-minute” change adversely affected their operations and income and upset their schedules. Despite receiving assurances they would be allowed “adequate” quantities starting from October, the company has warned it may resort to legal means if the board fails to deliver.
But as the crunch time nears, the matter could end up in court in any case, as Christis Managing Director Panikos Hadjicostas told the Cyprus Mail. “We are seeking legal counsel and are considering the court option if all else fails.”
He said the matter was now in the hands of the Commerce Ministry, to which Christis had submitted a proposal on Thursday, but he did not elaborate on this.
“Clearly, the Milk Marketing Board did not follow proper procedure. This is a question of ensuring fair competition. Newcomers to the market are welcome, but the manner in which this was done left much to be desired,” Hadjicostas said.
Christis currently has 40 per cent of the market, with the other 60 per cent going to Charalambides, and these figures are used to argue that Lanitis’ entry into the market would upset the balances.
Lanitis Managing Director Michalis Spanos yesterday denied allegations that the company had “slipped in through the back door,” adding that “we have never cared for backstage manoeuvrings”.
Spanos told a news conference that the company had followed all appropriate procedures and that Lanitis’ entry would help revive “a market with untapped potential”. He said Lanitis would have around 1,000 points-of-sale in distributing its new brand of milk.
The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.
