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By: Trademagazin editor Date: 2023. 04. 26. 10:16

An amendment to Act 164 of 2005, the Trade Act, stipulates that bars and restaurants selling alcoholic drinks must stock the products of minimum two manufacturers in each category.

Back in the day the Guild of Hungarian Restaurateurs (MVI) was lobbying for repealing the amendment. Recently the Hungarian Competition Authority (GVH) has audited the sector and prepared a draft report. MVI claims that several GVH findings justify the guild’s standpoint.

The amendment to the Trade Act triggered the most significant changes in the contractual practices of distributors being present on the bear market

GVH came to the conclusion that the modification of the Trade Act generated the biggest changes in the contracts signed with the big brewing companies. They now want only a 75-80% share from beer turnover, granting a bigger share for craft beer sales in HoReCa units. Equipment, various accessories and direct financial support provided by the major drink companies mean great help for Hungarian bars. These usually manifest already in the phase of opening the place. What they want in return is usually marketing activities and the buying of a certain quantity of products specified in advance.

HoReCa units react to the actual consumer needs, thus it wouldn’t be rationalistic behaviour on their side to establish new business relations in every drink category, as it could lead to increased operating costs for them. //

This article is available for reading in Trade magazin 2023/4.