Breaking News on Beverage Technology & Markets

EXCLUSIVE INTERVIEW: SIMON SPILLANE, BREWERS OF EUROPE (BRUSSELS PRESS CLUB)

‘Stop US tax discrimination against small EU brewers!’: Brewers of Europe

Post a comment

By Ben Bouckley+

30-Jun-2014
Last updated the 30-Jun-2014 at 15:01 GMT

Adam Barhan/Flickr
Adam Barhan/Flickr
Loading...

Brewers of Europe insists that ending 'discriminatory' tax breaks on small EU brewers exporting to the US remain a vital issue in ongoing talks around the Transatlantic Trade & Investment Partnership (TTIP).

Small US brewers exporting to the EU are eligible for reduced tax rates in both territories but EU exporters to the US get no such support, a discrepancy the EU wants to remove, as Simon Spillane from Brewers of Europe tells us in this podcast recorded in Brussels late last week.

Ahead of the fifth round of talks between the EU and US in Arlington, Virginia this May, trade confederation Brewers of Europe (membership of which comprises 29 national associations) welcomed support for the measure from German chancellor Angela Merkel.

After meeting President Obama on May 2, Merkel defended TTIP from sceptics at a press conference and said such free trade deals bring lower prices and a greater variety of products – German brewers have problems exporting to the US because of burdensome regulations, for instance, she said.

‘Ensuring a level playing field’

“The sixth round of talks is coming up in July, and the issue that we as Brewers of Europe have is to ensure a level playing field for small brewers exporting to the US, where currently the US small brewers benefit from a reduced rate, but the EU brewers don’t,” Spillane told BeverageDaily.com.

Spillane said that in the US a brewer typically pays $18/US barrel but smaller brewers pay a reduced rate of $7/US barrel.

“However, the European brewers aren’t able to benefit from that – it only applies to domestic producers and that’s something we wish to see levelled out,” Spillane said; Brewers of Europe insists any short-term US tax losses would be more than offset by increased EU beer imports.

“Especially as in the EU we have a directive on reduced rates, whereby member states can apply a reduced rate for smaller brewers. 21 European countries do that, both for American brewers importing into the EU but also for domestic producers here,” he added.

Spillane said there didn’t seem to be opposition to the tax-lowering proposal, explaining that TTIP discussions seem to be revolving around how to apply the ruling technically – to help brewers producing up to 2m US barrels a year. “The US wishes to ensure that the right brewers benefit from the rate,” he said.

‘Fascinating divergence in EU beer styles’

Brewers Europe says 250 brewers from 26 out of 28 EU countries already export to the US, and the majority of Europe’s 5,000 breweries meet the US small brewer definition, with annual production up to 2m US barrels.

“Currently, eight million hectoliters of beer per year is exported to the US by small European brewers – at the moment there’s around 390m hectolitres of beer produced in the EU each year,” Spillane said.

Turning to the growth of small breweries in the EU, Spillane said the bloc’s overall beer production had fallen circa. 8% since 2008 – despite significant growth in the five preceding years.

“But over the past 10 years there’s been a significant growth in the number of breweries in the EU. Where we used to talk about 3,000-3,500 breweries and now we’re looking at 4,500-5,000 breweries,” he said.

“For us this reflects a growing interest in beer among consumers. And also there’s a fascinating divergence in terms of the beer on offer to consumers these days,” Spillane added.

Post a comment

Comment title *
Your comment *
Your name *
Your email *

We will not publish your email on the site

I agree to Terms and Conditions

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Caffeine in small doses and during training may boost performance

Caffeine taken during training and even in small doses may boost sports performance: Researcher

Sophie Killer

Doctoral researcher in exercise metabolism and performance nutrition

'People don't break windows': Second Glass boss on US Wine Riots

'People don't throw chairs and break windows': Second Glass boss on starting US Wine Riots

Dubbed the 'Prince of Boston's Wine Revolution' by Stuff magazine, Second Glass founder Tyler...

Sainsbury's listings at 19, sports drinks at 24: Overly comes of age

Sainsbury's listings at 19, a sports drink launch at 24: Overly entrepreneur on guessing Justin King's email and casting off wide-eyed innocence

Young entrepreneur Chris Hannaway and childhood friend Will Hammersley launched frozen yogurt brand Arctic...

Stop US tax discrimination against small EU brewers: Brewers of Europe

‘Stop US tax discrimination against small EU brewers!’: Brewers of Europe

Brewers of Europe insists that ending 'discriminatory' tax breaks on small EU brewers exporting...

Mooted novel food changes will open exotic fruit doors in EU

Mooted novel food changes will open exotic fruit doors in EU

Dr John Wilkinson

Consultant and EU Novel Foods expert

DrinkPreneur Live 2014: OOb takes Tesco prize in final shootout

DrinkPreneur Live 2014: OOb takes Tesco prize in final shootout

Green-tea based drinks brand OOb took first prize at the inaugural DrinkPreneur event in...

GEA Procomac trials breakthrough White & Safe milk bottle in Italy

GEA Procomac trials breakthrough White & Safe milk bottle in Italy

Paolo Ventrelli from GEA Procomac tells us that the firm’s White & Safe bottle...

Coca-Cola launch will fire US shrink sleeve growth: CCL Label

Coca-Cola launch will fire US shrink sleeve growth: CCL Label

CCL Label tells BeverageDaily.com that Coke’s successful Christmas holiday promotion using its sustainable TD...

‘If kids don’t like it, you won't get far’: Daioni boss on healthy dairy drink success

‘If kids don’t like it, you won't get far’: Daioni boss on healthy dairy drink success

Welsh farmer turned entrepreneur Laurence Harris tells BeverageDaily.com about his nationwide distribution ambition for...

Squash to smoothie enhancers: DreamPak scans horizon in $400m market

Squash to smoothie enhancers: DreamPak scans horizon in $400m market

DreamPak’s international sales director tells Ben Bouckley that brands must differentiate to grow in...

Tesco soft drinks buyer warns brands PowerPoint can be painful

'PowerPoint can be painful!’ Tesco soft drinks buyer warns entrepreneurs

The head of Tesco’s soft drinks buying team David Beardmore has urged aspiring brands...

Hood: Sky’s the limit with aseptic beverage packaging

Pete Spanedda

Vice president of dales, HP Hood

 Digital direct printing: Krones sees a bright beverage future

‘Digital direct printing has a bright beverage future, when ink prices fall’: Krones

Krones explains that digital direct printing removes the need for labels and unlocks limitless...

Seven-year gap between old age and HEALTHY old age

Old age and HEALTHY old age, there’s a difference industry should address: Euromonitor

Diana Cowland

Health and wellness analyst, Euromonitor International

Nutrition Capital Network takes venture to Vitafoods Geneva

Nutrition Capital Network takes venture to Vitafoods Geneva

Grant Ferrier

Principal, Nutrition Capital Network (NCN)

Innovation success recipe: Respect consumers and draw inspiration from the unknown

Innovation success recipe: Respect consumers and draw inspiration from the unknown

Understanding consumer expectations and respecting these, combined with a boldness to draw inspiration from...

Food Vision 2014: Bridge knowledge gaps, overcome change and work sustainably

Food Vision 2014: Bridge knowledge gaps, overcome change and work sustainably

What is the future of food? Simple communication of complex advances will be crucial,...

Talking Rain CEO: Pepsi and Coke weren’t even looking at sparkling waters

Talking Rain CEO: Pepsi and Coke weren’t even looking at sparkling waters

Talking Rain’s Sparkling Ice brand plugs a market gap that Pepsi and Coca-Cola missed,...

Innovation for today: Digital tech empowers industry to innovate

Innovation for today: Digital tech empowers industry to innovate

Chris Cornyn

founder & president, DINE Marketing

Key Industry Events

 

Access all events listing

Our events, Events from partners...