Blog: Expect more beer duty deals in Africa
Chris Mercer | 2 November 2011
SABMiller's cut-price duty deal to produce its new Impala beer brand from cassava in Mozambique could be a sign of things to come in Africa.
To be proper about it, SABMiller is not the first to reach such a deal with authorities. For several years, Diageo has sold Senator Keg at reduced duty in Kenya, on the proviso that the beer helps to lift more Africans out of illegal alcohol consumption.
Bootleg liquor is potentially dangerous, of course, but it also deprives the authorities of tax revenue (and companies of sales).
I would not be surprised at all to see more duty tax deals along the Senator Keg and Impala lines across Africa, particularly involving the use of local raw materials.
Governments want revenue and brewers want to make beer more affordable to lure more consumers. At the same time, using local raw materials lowers production costs and brewers can argue that the policy has the potential to generate more wealth within a given country.
Spotted in Havana this week – a healthy stock of Pernod Ricard's Havanista rum. ...
Alcohol always has a big presence at the Oscars, albeit mostly in a supporting role....
Business is booming at copper pot still makers Chalvignac - you can tell from the loud noise coming from its factory floor in the French town of Jarnac-Champagne. ...
Heineken is betting big on the long-term opportunity around soccer in the US. ...
- Interview - Beam Suntory's EMEA president
- Beckham, Diageo and the Allure of the VIP Pop-Up
- Interview - William Grant & Sons
- What do A-B InBev results mean for SABMiller deal?
- Interview - Beam Suntory's EMEA head - part II
- Diageo, Beckham launch VIP pop-up for Haig Club
- Diageo reveals US$400m Tequila investment
- Pinnacle Vodka, Skinnygirl roll out on ice
- Diageo completes Don Julio, Bushmills swap deal
- Beam Suntory strikes new Baltics tie-up
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- Wine, 2014 and the future
- Beam Suntory Inc. - Strategy and SWOT Report
- Global RTD/RTS insights - market forecasts, product innovation and consumer trends research
- Spirits and RTDs, 2014 and the future