Johannesburg — THE wholesome image of rooibos tea was stirred yesterday when Rooibos Ltd - the company that controls more than 90% of the South African market for the healthful drink - agreed to a settlement with the Competition Commission not to engage in murky practices with customers.

The agreement, under which Rooibos Ltd escapes any admission of wrongdoing and fine, is due to be confirmed by the Competition Tribunal tomorrow.

It brings to an end a complaint that the commission referred to the Tribunal in December 2008, alleging that the Clanwilliam-based company forced customers to buy all their bulk tea from it, and gave discounts that hampered rivals' ability to compete.

Under the settlement, Rooibos Ltd will not be able to require two large customers, AVI unit National Brands and Unilever SA - also named in the commission's complaint - to purchase exclusively from the company.

Rooibos Ltd also undertook not to offer discounts or rebates selectively to different customers. The allegations of anticompetitive behaviour over the herbal tea derived from the Aspalathus linearis plant, contrast with the unsullied beauty of the Cedarberg where the plant grows naturally.

Neither Rooibos Ltd MD Martin Bergh nor marketing director Arend Redelinghuys responded to requests for comment yesterday.

National Brands' Freshpak label is the biggest brand in SA's 4000-ton market, with a 41% market share last year.

"Rooibos's method of operation is long established," AVI CEO Simon Crutchley said yesterday. "We are simply one of their customers. The opportunity to procure efficiently across our business is something we continue to look at."

Unilever SA, which has a 10% market share through its Glen Rooibos and Lipton Rooibos brands, said it did not have any exclusive supply agreements with Rooibos Ltd. "Unilever believes in vigorous yet fair competition and supports the development of appropriate competition laws," a spokeswoman said.