Heineken Fined for US Trade Practice Violations
Alcohol watchdog of USA, the Alcohol and Tobacco Tax and Trade Bureau (TTB) fined Heineken for $2.5 million for violation of trade practices.
Heineken was charged with giving their BrewLock platform free of charge to bars and reimbursing others through credit card swipes. BrewLock is Heineken’s draught beer system. The TTB alleged the BrewLock draught system “both obligated and induced” the bars to buy beer from Heineken.
Heineken is known for unethical trade practices including tax evasion and bribing and unethical marketing through cultural appropriation and targeting children. In the African region, there is evidence for Heineken exploiting women and abusing human rights.
Heineken while denying the charges, paid the fine in a compromise deal with the authority. The industry trade publication BrewBound reports this is the largest compromise taken by the TTB. The investigation into Heineken started in Florida and expanded to Washington state and New York City.
TTB further alleged Heineken USA used third parties such as business entities and payment services to provide “money or things of value” to retailers for beer placement. The alleged violations took place after August 2015.
Heineken is denying all allegations.