Carlsberg has warned it will be forced to cut costs if the duty hike goes through

Carlsberg has warned it will be forced to cut costs if the duty hike goes through

Carlsberg has claimed that it will be forced to close one of its Ukrainian breweries if a three-fold duty hike on beer goes through, according to reports. 

A draft bill in Ukraine's Parliament is proposing a three-fold tax rise on beer to UAH2.5 (US$0.31) per litre. Carlsberg, which has three breweries in the country, forecasts the market will shrink approximately 15% this year, if the bill is adopted, the Ukranain News Agency reported today (11 June). 

"In this situation we will be compelled to close down one of the company's three breweries, we are already discussing this issue now," Carlsberg's Ukraine director-general Petro Chernyshov was quoted as saying. 

He also warned the company will have to axe 15% of its Ukraine workforce, the news agency reported. 

The government has said 65% of the funds raised from the excise increase would go towards building hospitals, it was reported. 

First-quarter net sales in Carlsberg Eastern Europe region, which is mainly Russia and Ukraine, were flat, the brewer reported last month. 

Expert analysis

The Packaging of Retail Alcoholic Drinks in Ukraine, 2007 to 2017

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