NBL to render management assistance to Tanzanian distributor

06 Aug 2013 03:10
By Pearl Coetzee
WINDHOEK, 06 AUG (NAMPA) – Namibia Breweries Limited (NBL) is rendering management assistance to its distributor in Tanzania - Mabibo Beer, Wine and Spirits Limited - in a fight to curb the smuggling of its Windhoek Lager beer into that country.
NBL’s Managing Director Wessie van der Westhuizen told Nampa on Tuesday that although parallel trading or illegal stock occurs from time to time in the company’s export markets, the NBL is taking a bold stand to render management assistance to its distributor in that country.
“We have this bold stand in order to implement and execute the success model we have in Namibia in an attempt to build equity around our Windhoek Lager brand, and gain the necessary consumer insights and market knowledge in Tanzania.
If successful and volumes grow to a feasible and sustainable level over the years to come, we may be in a position to invest further in Tanzania,” he noted.
The Tanzania Daily News reported in July this year that Mabibo Beer, Wine and Spirit Limited has failed to meet the target of paying approximately Tanzanian Shilling 7 billion in taxes (N.dollars 42 million) to the Tanzania Revenue Authority (TRA) in a three-year period because of theft of their legitimate Windhoek Premium Beer market-share.
The company has also asked the Commissioner-General of the Tanzania Revenue Authority (TRA) to take legal action against Land Mark Hotel for allegedly evading over Tanzanian Shillings 2 billion (about N.dollars 12 million) in tax, following claims of the smuggling of Windhoek Premium Lager Beer in Tanzania.
Only Windhoek Lager with a code number MB66 was the legitimate beer imported into Tanzania. Currently, there is a shortage of this quality beer brand in that market.
The Kinondoni District Court in 2010 declared that nobody was allowed to sell Windhoek beer in the Tanzanian market which does not bear code number MB66, except where specific written consent from Mabibo had been sought and obtained.
Windhoek Lager is a beer with its own individual character and style, and is brewed according to the German Reinheitsgebot (Purity Law) decreed by Duke Wilhelm IV of Bavaria in 1516.
This means that the beer may only be brewed using malted barley, hops and water, and may not contain any preservatives, additives, chemicals or colourants.