Recent tax moves in Denmark have boosted beer and soft drink sales in the country

Recent tax moves in Denmark have boosted beer and soft drink sales in the country

The Danish government's decision to reduce beer excise duty two years ago, coupled with the halving and subsequent repealing last year a special tax on soft drinks, has boosted local sales in the sectors.

In the summer of 2013, excise duty on beer in Denmark was cut by 15%. Then, in January last year, Denmark's authorities eliminated a soft drinks tax, which had been introduced in the 1930s and stood at DKK1.64 (EUR0.22) a litre.

Figures given to just-drinks by the Danish Brewers Association last week show domestic beer sales in 2014 rose by 2% year-on-year. Domestic soft drinks sales rose in the same period by 10%.

"The sales development shows that even a small tax change has an effect on consumer behaviour," said DBA spokesperson Per Sten Nielsen. “It has brought a new dynamism to the market. Prices fell even more than the tax cut and sales grew simultaneously."

A report from Denmark's tax ministry projects personal soft drinks imports from neighbouring Germany will fall this year by 30%, following a similar fall in 2014.

The ministry and association could not confirm Danish media reports that cross-border imports of beer from Germany had also dropped, by 10% in 2013.