Small breweries are suffering due to the beer price war between Ringnes and Hansa Borg Bryggerier breweries. Two of Norway's smaller brewers have announced today that their market share has dropped.

Ringnes and Hansa Borg started the price war in the autumn of this year, with the introduction of their low-cost beers Tuborg and Borg. Both are sold at less than 10 kroner (US$1.50) per 0.33 litre bottle.

Grans Bryggeri, a small local brewery in southern Norway, has seen sales drop in October by 20% year-on-year. It has also had to reduce the price of its cheapest beer brand to 9.0 kroner.

Aass Bryggeri, also in southern Norway, has had its market share cut from 6.7% in September to 6.3% in October.

Hansa Borg and Ringnes have acquired 20% of the market share in October this year.

Beer consumption in Norway is also falling. Total beer sales decreased by 11% year-on-year in October. In the first ten months of 2003 sales fell by 5%.