Advertise with fastmoving.co.za
 
 

EABL raises concern over Senator Keg levy
EABL raises concern over Senator Keg levy

EABL raises concern over Senator Keg levy

MARKETING NEWS

The-Star.co.ke - Feb 24th 2014, 11:45

There are concerns of job losses in the beer industry following shut down of distributorship and outlets dealing in East African Breweries low-end beer Senator.
 

An estimated 7,500 distributors out of the original 12,000 that previously supplied Senator have closed business as the effects of a tax that was imposed on Senator keg beer begins to bite.

The tax led to a 25 per cent price increase and this has in turn locked out the majority of low-end beer consumers previously targeted by the manufacturer.

“We can only estimate the ripple effect of 7,500 outlets and the livelihoods they support in terms of employees and families could run close to 100,000,” EABL said in a statement.

Earlier this month the company said that slowdown in keg sales would see hundreds of jobs cuts. It estimated that revenues from the low cost drink had fallen by as much as 85 per cent.

The Treasury plans to raise Sh6.2 billion annually from the 50 per cent excise tax remission, but industry projections following the drop in sales of Senator shows tax collections could hover around Sh800 million.

Before Treasury’s ambitious plan, Senator keg was tax-exempted.

Senator was launched in 2004 as an innovative product of government and private sector collaboration to intervene and mitigate against the hazardous effect of illicit alcohol that had peaked in 2000.

But the high taxes has made it expensive and some experts are warning that this will make people troop back to illicit drinks.

From The-Star.co.ke 

Related News

Coca-Cola introduces sustainable packaging solution for multipacks
26/11/2019 - 10:40
Coca-Cola is rolling a new paperboard solution for multipacks of cans as part of its drive to eliminate plastic and use more sustainable packaging in its supply chain.

SAB rolls out SA's first environmentally friendly labels on beer products
25/11/2019 - 10:28
SAB is one of the only businesses in the world, and the first in South Africa, to introduce environmentally friendly Core Linerless Solutions® labels for its product packaging.

Woolworths boosts Earth Friendly range and launches plastic alternative products
12/11/2019 - 14:01
More than ten years ago, Woolworths pioneered its own label of eco-friendly products in South Africa with the launch of its Earth Friendly range of household cleaning products.

Sustainable packaging set to become battleground for premium alcohol producers
23/10/2019 - 11:10
As ethical credentials become increasingly prominent markers of quality, sustainable packaging is likely to become a battleground for premium alcohol beverage brands, according to analytics company GlobalData.

Unilever to halve use of new plastic as uproar over waste grows
10/10/2019 - 10:28
Unilever pledged to halve its use of newly made plastic by 2025 as the consumer-goods industry wrestles with growing criticism of the environmental impact of throwaway packaging.