Delhi government bans maker of Budweiser, Hoegaarden beers from market for three years: Reuters
A government investigation found that SABMiller, which AB InBev purchased in 2016, used duplicate bar codes, enabling the firm to evade taxes.
The Delhi government has banned Anheuser-Busch InBev, the world’s largest brewer, from the market for three years for allegedly evading taxes, Reuters reported on Wednesday. A government investigation found that SABMiller, which Anheuser-Busch InBev purchased in 2016, used duplicate bar codes on its beer bottles supplied to city retailers that year, allowing the company to pay lower taxes.
The government order will hit the sales of Budweiser, Stella Artois and Hoegaarden beers in Delhi. “The barcodes were being duplicated by SABMiller and supplied to the retail outlets to evade payment of excise duty,” the order dated July 16 said. Last week, the Aam Aadmi Party government issued a second order, which said that AB InBev should be put on a blacklist for three years.
A senior Delhi government official told Reuters that the company’s two warehouses in New Delhi were already sealed. “This means the company is debarred from Delhi market for all purposes, unless they appeal against this,” he said. The official added that no fresh stock of AB InBev beer brands can be sold at liquor shops or restaurants.
AB InBev told Reuters that the government’s allegations were related to operations of SABMiller prior to its takeover. “Integrity and ethics are part of our core values,” a company spokesperson said. “[We] look forward to presenting our views in full cooperation with the excise appellate process.”
“New Delhi remains an extremely critical market for any beer company,” a former senior company official said. “This is the country’s social capital, apart from Mumbai. It’s a showcase market for the premium beer portfolio.”