Main points
- “Karpatska Dzherelna” changed its label after being fined 9.4 million hryvnias by the Antimonopoly Committee for false information about the origin of the water.
- The updated label now does not contain mountain outlines and the inscription “Carpathians” to avoid misleading buyers.
“Karpatska Dzherelna” changed its label due to a fine / Photo from open sources
The water manufacturer “Karpatska Dzherelna” had to change its label. Bottles with the updated design have already appeared on sale, but the familiar elements have disappeared.
Why did the manufacturer change the water label?
The company produced new labels for “Karpatska Dzherelna” after receiving a fine of 9.4 million hryvnias from the Antimonopoly Committee.
Earlier, in March, the AMCU punished LLC “Carpathian Mineral Waters” for violating the legislation on protection against unfair competition.
The regulator then concluded that the company had been spreading false information about the origin of its water.
The thing is that the old label of the popular water depicted mountains, fir trees, and a map with the word “Carpathians” on it. The name “Carpathian” was also there.
After studying how consumers perceive the label, the committee decided that its design and name could be misleading. Buyers could indeed think that the water originated in the Carpathians. When in fact it is produced in the Zolochiv district of Lviv region, which is not a mountain region.
Considering the above, LLC “Carpathian Mineral Waters” may obtain unfair competitive advantages over producers and/or sellers of natural mineral table waters,
– the Antimonopoly Committee noted.
Therefore, the committee imposed a fine on the company and ordered it to eliminate the violations.
How has the label of “Karpatska Dzherelna” changed?
Back during the consideration of the case in March, the manufacturer informed the AMCU that it planned to change the design of the water label to eliminate the violations.
LLC “Karpatskie Mineralni Vody” explained that the name “Karpatska Dzherelna” was registered exclusively as a trademark, and it does not indicate the region of origin of the product.
The first batches of water with the updated label have already arrived in stores for sale. In the new design, you can see that the mountain outlines have disappeared, and the familiar inscription “Carpathians” has also been removed.
Photo: Updated mineral water label / Liga.net
What is known about water production?
“Carpathian Mineral Waters” was founded by the Cypriot company “Dynalum Finance Ltd”, but the beneficiary is a businessman from Ukraine, Serhiy Ustenko, writes Zaxid.net.
The water, which is produced under the brand name “Karpatska Dzherelna”, is extracted from two artesian wells. They come from a natural spring, and the extraction is carried out at a depth of 90 meters.
Mineral water “Karpatska Dzherelna” is produced at a plant in the village of Strutyn in the Lviv region. The wells are located nearby.
They started producing products back in 1996. But initially there was a shop for making soft drinks at a state-owned distillery. It was converted into mineral water only in 2002.
In addition to mineral water, the plant also produces sweet waters, baby water, and energy drinks.
Interesting! In addition, the company has launched the construction of another plant for the production of mineral water in the Lviv region.
What other companies has the Antimonopoly Committee fined?
Last year, the Antimonopoly Committee of Ukraine (AMCU) decided to impose fines on a number of companies for violating legislation on the protection of economic competition. This includes, in particular, distortion of bidding results, for which businesses must pay a total of over 29 million hryvnias.
Ten companies were sanctioned, which, according to the AMCU's conclusions, committed anti-competitive concerted actions during their participation in tenders. Among them are “Business Technologies” LLC and “Kyiv Asphalt Concrete Plant No. 8” LLC, “BMP Kramatorsk” LLC and “Budartel SX 65” LLC, as well as “Dyer” LLC together with “Gas Equipment of Ukraine” LLC.
In addition, Zaporizhia Engineering Group LLC and MK Profistroy LLC, Prodmet LLC and Steels Ukraine LLC, as well as Promkhimiya Trading House LLC and Kamyansky Foundry and Mechanical Plant LLC, received fines.
Separately, the committee fined TB Fruit Capital LLC 39 million hryvnias. The company was found guilty of violating competition law by acquiring 100% of shares in the authorized capitals of four companies without the necessary permission.