Carlsberg Hit by Russian Beer Sales

Thu, 05 Nov 2009

Carlsberg has reduced its sales forecast for the full financial year after disappointing beer sales in the Russian market. The Danish brewer has revealed a 10 per cent drop in the sales of its beers during the first nine months of 2009, and expects the decline to continue for the remainder of the year. Carlsberg chief executive Jorgen Buhl Rasmussen revealed the brewer was readying itself for ‘an equally challenging 2010’.

Carlsberg’s plight could be exacerbated if the Russian government decides in favour of tripling excise duties on beer when it makes its decision later this year. Carlsberg have hit out at the proposals, saying it would impact negatively on the alcohol and beer market. The decision will have massive implications for Carlsberg, which is Russia’s biggest brewer with nearly 40 per cent of the market. Indeed, almost half of Carlsberg’s profits are generated in Russia.

The brewer remains confident its annual profit will not suffer after good results elsewhere. Net income rose by 22 per cent in the third quarter to 1.49 billion Danish kroner, while the integration of Scottish and Newcastle saved 725 million Danish kroner as its assets were split between Carlsberg and Heineken .
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