Carlsberg shuts 2 Russian breweries as sales slump

GMT 13:12 2015 Thursday ,29 January

Arab Today, arab today Carlsberg shuts 2 Russian breweries as sales slump

Copenhagen - AFP

Danish brewer Carlsberg said Thursday it was closing two out of its 10 breweries in Russia, where sales have been hit by economic sanctions and policies to curb alcohol consumption.
"The closures will reduce the Russian capacity by approximately 15 percent and will impact 500 to 600 employees," the company said in a statement.
Shutting the two plants in Chelyabinsk and Krasnoyarsk, where production had been suspended since September, would lead to a writedown of 700 million kroner (94 million euros, $106 million), it said.
"Sales in Russia will undoubtably come under massive pressure in 2015," Sydbank analyst Morten Imsgard wrote in a note to investors.
Carlsberg, which is Russia's leading brewer with a 39 percent market share, said on Wednesday that a hiring and salary freeze had been put into place at the beginning of the year due to tough conditions in the Russian market.
Western sanctions over Russia's actions in Ukraine and a coinciding slide in the price of oil have sent the ruble tumbling and the country's economy into recession.
Brewers have also been hit by Russian measures to tackle alcoholism, which have included a crackdown on marketing and banning the sale of beer in kiosks and late at night.

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