Anti-corruption

Policy

Royal Unibrew works against all forms of corruption, including extortion and bribery. Our activities must always be in compliance with existing anti-corruption legislation, irrespective of geographical area.

According to Royal Unibrew’s Code of Ethics, our employees are not allowed to offer or accept bribes or any improper payments for personal or corporate gain. Disciplinary actions will be taken if an employee is involved in bribery.

Royal Unibrew’s business relations with key suppliers and partners are subject to requirements for compliance with anti-corruption legislation.

Activities

All new employees receive Royal Unibrew’s Code of Ethics in connection with their introduction programme. In 2017, all employees with responsibility for sales in areas outside the EU were individually trained in Royal Unibrew’s Code of Ethics when joining the Company, which will be followed up by annual training of all these employees.

Requirements for compliance with anti-corruption rules corresponding to Royal Unibrew’s Code of Ethics have been incorporated into all new agreements with distributors and key suppliers in 2017. Follow-up on the compliance with the anti-corruption rules was performed at status meetings with existing distributors and key suppliers.

Risk

Royal Unibrew is exposed to non-compliance with anti-corruption legislation through employees’, suppliers’ and partners’ violations, and is also exposed to potential legal and financial implications of such non-compliance.

Kpi

It is Royal Unibrew’s objective to avoid any violation of the anti-corruption rules internally as well as with its external partners.

Performance

Royal Unibrew did not note any violations of Royal Unibrew’s anti-corruption rules in 2017.

 

Competition

Policy

Royal Unibrew’s business must always be conducted in full compliance with existing local and international competition law; irrespective of the place of operation.

Royal Unibrew has a competition law compliance programme comprising a manual and guidelines. The programme includes regular training and follow-up towards relevant employees, eg through regular internal controls.

Activities

As part of Royal Unibrew’s competition law compliance programme, we continued monitoring developments in competition law and updated our compliance programme in 2017. Moreover, in 2017 we carried on our continuous training of executives and sales and purchasing staff in applicable rules, performed regular, internal controls and ensured compliance with the competition rules in connection with negotiating and entering into contracts.

Risk

Royal Unibrew is exposed to non-compliance with competition law through employees’ violations of the competition rules in the countries in which Royal Unibrew sells and distributes its products.

Kpi

It is Royal Unibrew’s objective to avoid any violation of the competition rules.

Performance

Royal Unibrew did not note any violations of competition law in 2017.

Tax policy and tax payment

Policy

Royal Unibrew operates in a number of countries and is therefore subject to both national and international tax rules. At the same time, the nature of Royal Unibrew’s business implies that both direct and excise duties are paid in the individual markets. Through its tax payments, Royal Unibrew contributes positively to society in the respective countries – as it does by creating jobs and using sub-suppliers.

The following general principles apply to Royal Unibrew’s management of tax issues:

  • Royal Unibrew pays taxes on its activities in the countries in which the activities are carried out, and no special tax structures for the purpose of tax optimisation are applied.
  • Royal Unibrew endeavours to live up to national and international tax legislation at all times and sets out to enter into an open and constructive dialogue with the tax authorities.
  • Royal Unibrew has developed an internal organisation and has laid down well-defined control procedures designed to ensure compliance with tax legislation.
  • Royal Unibrew wants to communicate openly and fairly about its tax policy and tax payments.

Risk

Mismanagement of tax issues may lead to a negative image with investors and business partners in general, and may lead to higher tax costs.

Activities

In 2017, Royal Unibrew updated its processes and documentation of tax legislation compliance in all the countries in which the Company operates.

Performance

Royal Unibrew was not involved in any cases of non-compliance with tax legislation in 2017.

In 2017, the effective tax rate was 21% of profit for the year (2016: 21%). Royal Unibrew paid corporation tax of DKK 246 million on its operating activities (2016: DKK 211 million). In addition to that, Royal Unibrew’s activities generate other considerable tax payments, including excise duties on beer, mineral water and other items, VAT, personal taxes and social security contributions. The total contribution through taxes in 2017 amounted to DKK 4.7 billion (2016: 5.0 billion). Primarily, the decrease in tax contribution relates to changes in excise duties and VAT. Moreover, tax contributions from the Group’s suppliers and customers are indirectly generated.