Are drinks producers in Denmark losing trade to Germany?

Are drinks producers in Denmark losing trade to Germany?

The introduction of a tax on a raft of drinks categories in Denmark has seen a rise in cross-border trade with neighbouring Germany, according to a recent survey.

At the beginning of 2012, the Danish authorities raised taxes on items including beer, wine and soft drinks. The move was introduced to improve public health and to balance the country's budget.

Subsequently, around 60% of households in Denmark have bought beer or soft drinks in Germany in the last 12 months, according to a survey by the Danish Grocers’ Trade Organisation (DSK). This compares to 60% of households having never made cross-border purchases four years ago.

Speaking to EurActiv, Claus Bøgelund Nielsen, VP at DSK, said: “This [the rise in the border trade] is due to the tax increases on specific consumer goods which where introduced by the Danish government at the start of the year. This is what we see the effects of now.”

On average, Danish families bought 420 units of beer or soda in Germany last year.