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Agent sues Heineken Ethiopia

Agent sues Heineken Ethiopia

Heineken Share Company of Ethiopia is being sued, accused of abruptly ending a contract worth more than 2.7 million birr by one of its former agents and distributors.

Solomon Gizaw, the plaintiff, has taken his complaints to the Lideta Federal High Court’s Civil Bench with a slew of allegations, according to the charges.

The Switzerland citizen and an Ethiopian Diaspora, Solomon claims that he has long association with the company as its exclusive agent, importer and distributer in Ethiopia since 2005.

Heineken decided to enter the Ethiopian market in the midst of the privatization foray of the local beer industry by international players. It initially had an early interest in the acquisition of Meta Abo Brewery but has lost out to Diageo and decided to construct its own state-of-the-art brewery. It instead launched its signature made-in-Ethiopia Heineken products in addition to refurbishing local brands such as Bedele, Harar and starting its popular Walia brand.

Solomon alleges that the contract he had with Heineken was voided abruptly and has been losing upwards of 10,500 Birr of income daily and about 315,000 birr per month, that he alleges, otherwise is entitled to have.

Furthermore, he alleges that, a cheque he had presented to Heineken worth 372,500 birr as collateral for company products he had in his possession, the company without warning to him, presented it to the bank attempting to cash it and have it bounce; as a concentrated effort to discredit and harm him and his reputation, indicating it has caused him undue distress and damage.

He is asking to be compensated 2, 747, 300 Birr. Both parties are to appear at the Lideta court on May 10th and Heineken is to respond to the complaints by May 29th.