Beer Crime: AB InBev Banned For Three Years In Delhi Over Tax Evasion

Anheuser-Busch InBev, has been banned from selling its products in the city for three years over local tax evasion issues.

Here’s what we know…

Delhi, India’s capital city, has imposed a three year ban on the world’s largest brewer, after authorities found that SABMiller, which AB InBev acquired in 2016, had committed tax evasion.

In its findings, Delhi authorities allege that SABMiller “used duplicate barcodes on its beer bottles supplied to city retailers that year, allowing it to pay lower levies, according to Reuters who had been briefed by a city official earlier this week.

On July 16, city officials filed a 19-page document which stated that: “The barcodes were being duplicated by … SABMiller and supplied to the retail outlets to evade payment of excise duty.”

In a later filing, Delhi officials “blacklisted” AB InBev for three years and that two of the company’s warehouses in Delhi had already been sealed.

And the official told Reuters that no new AB InBev stock could be sold at shops and restaurants in Delhi while the company is “debarred.”

As the publication noted this ruling is a huge hit for the global brewer “which counts popular beer brands such as Budweiser, Hoegaarden and Stella Artois in its portfolio.” According to IWSR Drinks Market Analysis.

AB InBev is the second biggest player in India’s $7 billion beer market, behind United Breweries, home to Kingfisher and other regional brands.

Heineken now owns more than 45% of United Breweries which in turn controls half of India’s beer market with flagship brands like Kingfisher, Kalyani Black Label, and Sandpiper.

In a statement AB InBev denied the city’s allegations and added that it would be appealing the decision…

“We deny the allegations set out in this order and look forward to presenting our views in full cooperation with the excise appellate process. We look forward to receiving a fair hearing on this matter.”