Delhi bans Beer Company For Three Years that makes Budweiser, Hoegaarden beers

4701

Anheuser-Busch InBev is the world’s largest alcohol-making company which is known for its well-known Brand Budweiser Alcohol-Free Variant and is quite common in the beer market of India. Now, the news has divulged that Anheuser-Busch InBev is now banned for selling alcohol in Delhi for 3 years due to avoiding local taxes. Currently, Anheuser-Busch InBev sells three popular brands of beer which are Budweiser, Hoegaarden and Stella Artois.

The Delhi state administration orders from earlier this month complied a 3-year inquiry which affirmed that beer maker SABMiller – taken by AB InBev in 2016 for about $100 billion – applied fake bar codes on the bottles of beer which was further supplied to city retailers that year, enabling it to settle in lower taxes. AB InBev is the second most prominent alcohol supplier in India’s $7 billion beer business, estimating for a 17.5 percent market share. Now AB InBev is declining the Delhi government orders and will appeal for it in the court.

A follow-on inquiry showed that some beer bottles sent to the bar in November had the same bar codes to those found in the inspection in August, the government order said. The Delhi government said it was “fair to believe” that the same bar codes were duplicated multiple times and supplied to various retail vendors in Delhi, adding that this amounted to the crime of selling non-duty cleared alcohol. According to the reports by United Breweries, In the last 5 years, the beer business in India has been rising at 8% per annum. The super premium beer segment is expanding at a healthy 30%.

In a second-order last month, the Delhi city officials stated that AB InBev will be put on a blacklist for up to three years. It also summoned for the sealing the two of the AB InBev’s repositories in Delhi. “This order relates to operations of the legacy company dating back to 2016, before our takeover. After we took control, we have discontinued our relationship with the vendor that managed the relevant Delhi warehouse and are taking steps to enhance our systems,” a company spokesperson said in a statement, while mentioning that the order relates to 12 bottles at one bar.