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Beerworkers Archive


Post date: 07/07/2011 - 14:56

Carlsberg Could have too many Eggs in One Basket

Carlsberg A/S, the world’s fourth- biggest brewer, slid in Copenhagen trading after a Russian newspaper said that country’s government may ban sales of drinks containing more than 0.5 percent alcohol at night and in kiosks.

Carlsberg, the owner of Russia’s biggest brewer, fell as much as 24 kroner, or 4.2 percent, to 546 kroner, marking its lowest intraday price since March 17. The shares were down 2.8 percent to 554 kroner as of 2 p.m. local time

Carlsberg A/S, the world’s fourth- biggest brewer, slid in Copenhagen trading after a Russian newspaper said that country’s government may ban sales of drinks containing more than 0.5 percent alcohol at night and in kiosks.

Carlsberg, the owner of Russia’s biggest brewer, fell as much as 24 kroner, or 4.2 percent, to 546 kroner, marking its lowest intraday price since March 17. The shares were down 2.8 percent to 554 kroner as of 2 p.m. local time

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Russia’s lower house of parliament, the State Duma, has had the first reading of a proposal to regulate the sale of alcohol and has conditionally approved the bill, Vedomosti reported today. The proposal is subject to two reviews this week, according to the newspaper.

The bill proposes that the sale of beverages stronger than 0.5 percent alcohol be banned from 11 p.m. to 8 a.m., and that vendors at stalls and kiosks be prohibited from selling alcoholic drinks at any time, Vedomosti reported.

“The proposed tightening of the legislation will present a challenge to the breweries,” Jens H. Thomsen, an analyst at Silkeborg, Denmark-based Jyske Bank A/S, wrote today. “However, these are challenges that can be solved.”

Carlsberg, which sells brands including Tuborg and Kronenbourg, got about 45 percent of its profit from eastern Europe last year and is the owner of Baltika, Russia’s biggest brewer.

Russia is clamping down on alcohol sales in order to address burgeoning consumption. The government raised beer taxes 200 percent in January 2010, leading to a slump in sales. Carlsberg’s volume in Russia rose 28 percent in the first quarter of this year as it rebounded from the effect of the tax increase and the company said in February that it expected the Russian beer market to expand 2 percent to 4 percent.