Who is to blame for high beer prices in some European countries?

Belgium | Some pundits were quick to interpret AB-InBev’s EUR 200 million fine by the European Commission as a shot against manufacturers, who use their strong market positions to unfairly command higher prices in some EU countries as opposed to others.

However, the Commission’s fine had been issued against AB-InBev for implementing anti-competitive practices only. Margrethe Vestager, the EU’s Commissioner for Competition, had said that AB-InBev had abused its dominant position in the Belgian market to restrict bulk imports of its Jupiler brand from the Netherlands, where the lager costs less.

This did not stop the website Politico from claiming that consumers in Belgium are frequently exasperated by the high prices on their shelves, when compared to cheaper neighbours, such as Germany and the Netherlands, where there is more competition.

While it is true that manufacturers can command higher prices for their wares if they have little or no competition, this does not always hold true for brewers. One of the reasons beer prices are comparatively high in some European countries is that the local tax men are greedy too, and want their share.

Excise tax rates vary widely across the European Union and often serve political, as well as financial ends. What is more, some countries impose further taxes at differing levels, as seen in Value Added Tax (VAT). These taxes alone lead to differing retail prices of beer across European supermarkets.