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with, our own. Alongside American whiskey companies, we have called on the UK, US and EU governments for many months now to nd a negotiated solution to the trade disputes that have given rise to these tit-for-tat tariffs, and to ensure that duty-free trade can resume between the UK and the US to the bene t of whisky producers, their employees, the communities we work in, and consumers everywhere. “We now need the UK and Scottish gov- ernments to work together to ensure distillers can weather the storm. We want them to consider a range of support to the industry, including reducing the UK tax burden on Scotch whisky in the Autumn Budget. This will provide an important lifeline while efforts continue to remove the tariffs. “Despite multiple pressures on the UK government, including Brexit, this issue must not fade from the minds of Ministers. Scotch whisky has long been a standout export success. This is now at risk if government strategy does not urgently use all the powers at its disposal to remove these damaging tariffs.” Joint statement by International Beverage Alcohol Associations in response to US Tariffs “We are united in our opposition to the impo- sition of tariffs and clear in our view that there are no winners in a trade war. Our 15 inter- national beverage alcohol associations today sent a letter to the US administration and the EU Commission calling for an immediate end to tariffs on distilled spirits and wines and welcoming their statements of their shared intent to reach negotiated solutions to the disputes. Our industries are collateral damage in trade disputes that have nothing to do with the beverage alcohol sector. This new round of tariffs will further damage a transatlantic industry that has already been negatively impacted by the EU’s retaliatory tariff on American Whiskey. American whiskey exports to the EU have faced a 25% tariff since June 2018 and, beginning today, certain EU spirits and wines
imported into the US now face a 25% tariff. Since the EU’s imposition of tariffs, American whiskey exports to the EU have decreased nearly 21%. These tariffs are greatly harming the industry’s competitiveness, long-stand- ing partnerships, workers and our farm suppliers. The negative impacts will be compounded by these new tariffs on EU products entering the US Tariffs are taxes on US consumers who create demand for these products in the US marketplace. Importantly, the US and EU wines and spirits sectors are interconnected, with companies owning a range of European and American distinctive spirits and wines in their brand portfolios. As a result, these new US tariffs on EU spirits and wines could result in the loss of 8,000 good-paying jobs across the US beverage alcohol sector, from importers, distributors, wholesalers, to the hospitality sector. Prior to these recent trade disputes, US and EU spirits exporters enjoyed more than two decades of tariff-free access to each other’s markets, and US and EU wine exporters have faced very low tariffs. This open access to each other’s markets has signi cantly bene tted EU and US distillers, vintners, farmers, and the hospitality industry on both sides of the Atlantic, resulting in increased jobs, community investment and consumer choice. Additionally, many US wine and spirits exporters may face the increasing likelihood that the EU may respond by imposing more tar- iffs on US wines and other US spirits products. The next quarter is the busiest time of the year for spirits and wine producers on both sides of the Atlantic as consumers gear up for holiday gift-giving and entertaining. In order to protect the jobs and communities we support, we urgently call on the US and the EU to reach an agreement to de-escalate the current trade disputes by immediately and simultaneously removing the EU’s retalia- tory tariff on US whiskey and the US tariffs on EU spirits and wines.” The joint statement was issued by the following beverage alcohol trade associations: • American Beverage Licensees • American Craft Spirits Association
• American Distilled Spirits Association • Bureau National Interprofessionnel du Cognac (BNIC) • Distilled Spirits Council of the United States (DISCUS) • Drinks Ireland|Irish Whiskey • Drinks Ireland|Spirits • Federación Española de Bebidas Espirituosas • Kentucky Distillers’ Association • National Association of Beverage Importers • Scotch Whisky Association • spiritsEUROPE • The Wine and Spirit Trade Association • Wine and Spirits Shippers Association • Wines & Spirits Wholesalers of America AB InBev announces IPO pricing of its Asia Paci c subsidiary AB InBev has announced its decision to proceed with the initial public offering (IPO) of 1.26 billion shares of a minority stake of its Asia Paci c subsidiary, Budweiser Brewing Company APAC (Budweiser APAC), on the Hong Kong Stock Exchange. Shares of the unit will be priced at HKD 27 each and AB InBev expects gross pro- ceeds of the offering to be HKD 39.2 billion (approximately $5 billion). The announcement comes after the company ditched plans to list the Asia Paci c unit in July. That listing attempt sought to price shares at between HKD 40 and HKD 47 each and was cancelled due to “several factors, including the prevailing market con- ditions”, AB InBev said at the time. The company has partially exercised an offer size adjustment option, issuing an additional 189.4 million shares to cover mar- ket demand. Following the listing, AB InBev will control between 87.22% and 88.86% of Budweiser APAC. In July, the company secured a deal to of oad its Carlton & United Breweries subsidi- ary to Asahi Group Holdings for $11.3 billion.
News: brewing
Court bars AB InBev from claiming its products have ‘no corn syrup’ A federal judge in the US has issued a pre- liminary injunction against Anheuser-Busch InBev that prevents the beer giant from claiming its products have “no corn syrup,” delivering a win for rival MillerCoors, CNBC reported in September. The US subsidiary of Molson Coors
Brewing, MillerCoors, sued its St. Louis- based competitor earlier this year for a corn syrup ad campaign that began airing during the Super Bowl for its Bud Light beer. MillerCoors alleged that AB InBev sin- gled out corn syrup for criticism because it would confuse and mislead consumers about its own use of the ingredient, in addition to misusing MillerCoors’ trade- marks in its ads. MillerCoors contends that while the beer brand uses corn syrup in the
brewing process, there is no corn syrup in the actual beers it sells. It also argues that consumers can easily confuse high fructose corn syrup, which has been asso- ciated with the obesity epidemic, with the potentially more benign corn syrup it uses in brewing. According to the ruling in US District Court for the Western District of Wisconsin, a “reasonable jury could nd that the implicit message of the [Bud Light] packaging is that other beers contain corn syrup.”
8 ● BREWER AND DISTILLER INTERNATIONAL I november 2019
i bd.org.uk
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