Spendrups Bryggeri may have to close one of its breweries as Sweden's brewery sector continues to suffer. The Swedish brewer said last week that it plans to cut around 70 jobs at its factories in Varby, eastern Sweden, and Grangesberg central Sweden.

One of the two plants may have to close, according to the company's CEO Jens Spendrup, as sales fell considerably in the first two months of this year.

The high beer and alcohol taxes in Sweden have hit the industry hard, as cross-border alcohol trade resulted in every third strong beer in the country having been illegally imported.

Spendrups is not the only brewer looking to shed jobs, however. Carlsberg announced late last year that it plans to close its Stockholm plant by October this year. Local Abro Bryggeri has also had to reduce its workforce to 250 from 400 since 1995.

Last month, Spendrups announced that it is to form a strategic alliance with Denmark's Bryggerigruppen and Norway's Hansa Borg to challenge Carlsberg's leading position in the Scandinavian markets.