Blog: Sympathy for the Multi-National
Olly Wehring | 9 September 2010
The temptation to side with big business has always been one that I've found pretty easy to resist. Stick it to the man, has been my mantra since student days – albeit more quietly these days (right, corporate subscribers?).
But, it's hard not to sympathise – if that's the word – with the multinationals of this world, when I read of India's decision to slap Vodafone with a US$2.6bn charge. The mobile 'phone giant was told by the High Court in Mumbai this week that it is liable for the charge after it acquired local operator Hutchison Essar three years ago.
Vodafone's defence has been that the transaction is not subject to the country's tax rules, because it took place in the Cayman Islands via a string of holding companies. This defence has cut no cloth with the High Court, though.
The aftershocks of the ruling pricked memories of the rumblings last summer, when Diageo had to tread very gingerly in Scotland, for fear of provoking the ire of politicians in the country.
Last year, the challenge laid at Scotland's door was that it was not a friend of big business. “What incentive is there to operate in a country that reacts like that?” was a question I was asked (rhetorically, thankfully) a year ago.
So, India, could you provide me with an answer, please?
What incentive is there to operate in a country that reacts like that?
Whisk(e)y companies spend a lot of money and effort ageing their products for that premium taste....
PepsiCo created a stir last week with the news it is testing a product called Caleb's Kola, with some in the media claiming it was the beginning of a new “craft soda” category....
SABMiller's bid to widen the appeal of beer is very much in evidence at its latest 'House of Peroni' - with beer cocktails and a bigger bottle for the Italian lager brand on offer. ...
Here's a round-up of the big stories on just-drinks last week, featuring PepsiCo, SABMiller, the Scotch whisky category and the US wine market....
- Diageo's future brighter than present suggests
- Diageo's Q1 Results by Region
- Analysis - Remy's Cognac "dead-cat bounce"
- Focus - Remy Cointreau's H1 Performance by Brand
- Three Questions for the Drinks Industry
- Moët Hennessy unveils first Travel Retail outlet
- Diageo puts Beckham centre stage in Haig Club ad
- United Spirits sees Q1 net loss
- Diageo Q1 sales dip "in line with expectations"
- TWE unveils Penfolds range after CEO's "bold move"