Cervejas de Moçambique to launch new beer

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Cervejas de Moçambique to launch new beer

7:03 CAT | 18 Jul 2017

The brewing company Cervejas de Mocambique (CDM – Beers of Mozambique) has announced that it is to launch a new beer made from locally grown maize.

According to Monday’s issue of the newspaper “O Pais”, production should commence soon, after the issue of the rate of consumption tax has been addressed by the authorities.

Goods that can endanger human health, or which are considered superfluous or luxury products are subject to a “Specific Consumption Tax” (ICE). This tax is imposed at various rates on tobacco products, alcoholic drinks, vehicles, perfumes and other cosmetics, certain sports equipment, jewellery and works of art.

CDM proposes that beer based on maize be charged at an ICE rate of 5 per cent due to the positive effect it will have on local producers. Indeed, when CDM launched a cassava based beer in 2011 a levy of just ten per cent was imposed compared with a rate of 40 per cent for beer made from malt. It argues that if the government pursues a more robust tax regime the beer not will be profitable.

The company expects that launching the new beer will create 3,500 jobs and generate 340 million meticais (about 5.6 million US dollars, at current exchange rates) in income for farmers.

About 70,000 tonnes of maize is currently available for CDM to purchase, mainly in the centre and north of the country. However, the sale of this maize is awaiting the government’s decision.

The company has stated that in 2017 it expects to purchase 509,000 tonnes of maize, which represents over a sixth of the maize surplus. Thus, it argues that the new beer will support the commercialisation of agriculture.

Also Read: Zambezia to provide maize for brewing

Indeed, on 10 July the Zambezia provincial director for industry and trade, Momad Juizo, stated that the opening of the new beer production line based on maize offered good prospects for this section of commercial agriculture, with Zambezia alone expected to produce 650,000 tonnes of maize per year for the beer.

In addition, CDM argues that the new beer will increase total tax revenue because it will compete with products that are not taxed. It is estimated that over 60 per cent of drinks are not taxed as they are either homemade or smuggled into the country.

CDM is the largest brewer in Mozambique, with factories in Maputo, Beira, and Nampula. It produces the country’s best-known beers – Laurentina and 2M, along with a cassava-based beer called Impala.

CDM is the local subsidiary of the huge multinational brewing company Anheuser-Busch InBev, which has its global headquarters in Leuven in Belgium.

Source: AIM