RUSSIA: Carlsberg warns of tough beer market
Carlsberg has warned that its third quarter beer volumes are likely to be down in Russia, reflecting a market slowdown in 2008.
Poor weather, rising prices and economic problems were to blame for the expected "slight" decline in the third quarter, Carlsberg said in an unshceduled trading update today (3 October).
Russia's whole beer market, excluding premium, has suffered this year, said the group, which now fully owns the country's leading brewer, Baltika, following its part in the takeover of Scottish & Newcastle this year.
"For 2008 as a whole, we now expect the Russian beer market growth to be 1-2%," said the Danish brewer, adding that conditions had become worse in the last six weeks.
Carlsberg said it expected double-digit net revenue growth, in local currencies, and operating margin growth for the quarter, however. It attributed this to continued growth in the premium beer segment.
The brewer will report its third quarter results on 5 November, but released today's statement "as a result of the extraordinary level of investor uncertainty, intense market speculation around the Russian environment and comments from other consumer companies operating in the region".
It added: "Key fundamentals for growth in Russia remain unchanged and support a medium term growth rate of 3-5% per year with existing premiumisation trends continuing."
Both Heineken and Carlsberg this week said that they would focus on cost savings in 2009, as international beer markets struggle in the face the economic downturn. Michelle Russell looks at how both b...
Belgium-based beer giant Anheuser-Busch InBev saw its fourth-quarter profit plummet 95% yesterday (5 March), hurt by restructuring charges and poor beer sales. Michelle Russell looks at the reaction t...
Carlsberg has confirmed another brewery closure, this time in Finland....
Finnish drinks firm Hartwall and parent company Heineken are to expand Finland's native Lapin Kulta beer across Scandinavia....
Danish brewer Carlsberg's board of directors has appointed its next deputy chairman....
European brewing association The Brewers of Europe said today (13 March) that it welcomes the EU's Alcohol and Health Forum set up to fight alcohol misuse....
Sun InBev, the Russian subsidiary of Anheuser-Busch InBev, has opened a new EUR150m (US$192m) brewery in the country....
Two UK drinks containing vodka are being forced to re-brand following a complaint under the Portman Group's code of practice....
- Focus - Diageo's FY Performance by Region
- It's not all bad for Diageo - Analysis
- Diageo " knew United Spirits would be complicated”
- Focus - Diageo's FY Performance by Brand
- Diageo upbeat on Scotch prospects
- Challenges remain as Diageo posts flat FY sales
- Edrington appoints new board director
- Bacardi creates Bacardi rum marketing role
- Britvic appoints SABMiller's Dunn as CFO
- Q2 drags on half-year for Anheuser-Busch InBev
- Global gin insights - market data, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global liqueurs insights - market forecasts, product innovation and consumer trends research