Branding News South Africa

Concern over illegal beer

A Mozambican subsidiary of SABMiller has expressed concern about an increase in the number of illegally imported beers making their way into that country from Europe and South Africa.

"What we have observed in the recent past is an increase in foreign product being sold in informal markets at retail prices. That would indicate that the product is entering the country without import duty and consumption tax being paid," said managing director of Cervejas de Moçambique SARL Roger Smith in an e-mail.

He said most of the illegally imported beer came from South Africa. Some European brands were selling on local informal markets.

Clear beer, other than that produced by CDM, accounted for approximately 4% of the total market in Mozambique.

The company had recently discussed the matter with Mozambican customs authorities.

"[O]ur view [was] that the product was entering the country without the correct taxes being paid".

"We were given assurance that they would make every effort to tighten up the road borders in particular and take action where necessary".

"A substantial quantity of illegally imported beer has already been confiscated," said Smith.

Source: Sapa

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