Belgium: InBev slammed over late payment

InBev, the brewer of beers including Stella Artois and Beck's, has been "named and shamed" for extending the time it takes to pay suppliers, Business Zone reported June 6.

The Forum of Private Business (FPB), which has been campaigning against such tactics by large companies for several years, said InBev is the latest company to join its "Hall of Shame".

According to an FPB member, the Bedfordshire-based brewer switched its payment terms from 30 days from the end of the month of an invoice to 60 days at short notice.

In a letter sent to suppliers, InBev wrote: "We rely on strong working relationships with our suppliers...and...we thank you for your efforts so far in helping us towards this vision."

But FPB executive chairman Len Collinson said he doubted that suppliers will have similar sentiments towards the company.

"Not only was this decision taken without the consent of InBev's suppliers but also they were given less than a month's notice of the change," he claimed. "Many suppliers of the firm will find it difficult to adapt and will have problems with their cash flow.

"This is an abuse of buying power. Suppliers are unlikely to stand up against such unilateral action on payment terms for fear of losing InBev's custom completely. They will have no choice but to accept these changes and the consequences for their firms."
According to the FPB, InBev has claimed that its action is part of a "harmonisation of payment terms across Europe" which will allow it to "place maximum efforts in connecting and investing in our consumers and therefore develop further our ability to offer the potential of long-term sustainable business growth with our suppliers".

However, Collinson added: "This is nothing short of making suppliers pay for savings at InBev. To try and pass it off as in the best interest of suppliers in the long term is particularly galling."

Some 22 large companies are currently listed on the FPB's "Hall of Shame". As well as InBev, it features Woolworths, Tesco, B&Q and Robert Dyas.

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