The Delhi government has banned the world’s largest brewer, Anheuser-Busch InBev, from selling its products in the capital city for 3 years for allegedly evading local taxes, reported Reuters. AB InBev counts popular beer brands such as Budweiser, Hoegaarden and Stella Artois in its portfolio.
An investigation by the government found that beer maker SABMiller—acquired by AB InBev in 2016 for around $100 billion—used duplicate barcodes on its beer bottles supplied to city retailers, allowing it to pay lower levies.
“The barcodes were being duplicated by ... SABMiller and supplied to the retail outlets to evade payment of excise duty,” said a 19-page order, dated July 16, which detailed the findings.
In another order last week, the government said that AB InBev should be put on a “blacklist” for three years. It also called for the sealing of two of AB InBev’s warehouses in the capital city, an action that a senior Delhi government official told Reuters on Tuesday had already been completed.
“This means the company is debarred from Delhi market for all purposes, unless they appeal against this,” said the official, adding that no fresh stock of AB InBev beer brands can be sold at liquor shops or restaurants.
AB InBev in a statement denied the Delhi government’s allegations and said it would appeal against the order.
“Integrity and ethics are part of our core values ... (We) look forward to presenting our views in full cooperation with the excise appellate process,” a company spokesperson told Reuters.
AB InBev is the second biggest player in India’s $7 billion beer market, accounting for a 17.5 percent market share, according to research firm IWSR Drinks Market Analysis.
