The Hungarian government
is cracking down on the commercial use of Nazi or communist symbols such as swastikas,
hammer and sickles, or a red stars. The reason given is respect for the victims
of the Holocaust and communism. Heineken’s red start has therefore seen as “an
obvious political meaning”. Under the “Lex Heineken”, the Dutch brewery is looking
at a fine of 6 million euro.
As with most laws and regulations, it has an interesting back
story. For starters, Hungarian
restaurants like to promote local wines and beers. The consumption of beer is
around 80 liter per person. The most consumed beers are from SAB
Miller and Heineken.
The ban could be a clever attempt to block foreign competition (which is not
allowed under EU law).
Furthermore, Heineken won an infringement court case against
a Hungarian-owned small brewery in Romania. Heineken sells a Csiki Premium
beer, while the Rumanian brewery produces Csiki
Sör (Csiki Beer). The court
ruled in favor of Heineken, and the name Csiki Sör cannot be used anymore. The
nationalistic Hungarian government likes to stick up for its minorities across
its borders. The ban could be seen as a revenge act.
Last but not least, the government of Viktor Orbán is
against the presence of international companies in Hungary. The central and
local authorities believe that those internationals sell inferior quality of EU
products in Eastern Europe, while Western Europe enjoys top quality.
The “Lex
Heineken” is currently being discussed in parliament. Even if it passes, it
is unlikely that it will stand up. Chasing strategic partner and tax payer
Heineken out of Hungary is not a smart move.
