Russian Federation: Latest beverage news & analysis
That, in just the space of two days, Carlsberg has announced both a pay freeze and the closure of two Russian breweries, speaks volumes about the seriousness of the situation in its Eastern European stronghold.
It was more of the same for Carlsberg in its YTD results release yesterday as weakness in Eastern Europe continued to damage the bottom line.
Carlsberg's CEO has said that Russia may reverse some of the regulations that has seen the country's beer market shrink and brewers close production sites.
Five years ago, Heineken announced it was cutting 140 jobs in Russia, with the suspension of brewing at one of its sites. The news came just weeks after the Dutch firm had revealed plans for another closure in the country.
Yesterday's headlines around Carlsberg were dominated by the group's half-year performance in Eastern Europe. And rightly so. The Danish brewer relies on the region for around 36% of its group profits.
Carlsberg is to close two of its ten Russian breweries with the loss of up to 600 jobs.
Carlsberg has confirmed it has introduced a freeze on salaries and hiring new staff in light of its on-going struggles in Russia.
Carlsberg says it has not ruled out closing some of its breweries in Russia after an analyst predicted two will shut down as the country's economic crisis deepens.
Finland's Altia Corp is to launch its Koskenkorva vodka brand in Russia ahead of the holiday season.
Carlsberg has welcomed the on-going passage of a bill to freeze beer duty in Russia, branding it a “positive development”.
Anheuser-Busch InBev has announced it is shutting down another of its Russian breweries – its fourth closure in the country in the last two years.
Carlsberg has suspended production at one of its Baltika Breweries' facilities in Russia.
Russia's food safety watchdog has announced an import ban on a number of beers and spirits produced in Ukraine, according to reports.
The Coca-Cola Co has said proposed legislation from Russia's Communist Party to tax sugary beverages would only harm Russia's economy.
US distiller Sazerac Co has said it has not heard from Russian authorities, despite reports that the company is facing a ban of its Kentucky Gentleman Bourbon brand in the country.
The Coca-Cola Co has had its fair share of critics this year, from health campaigners to investor David Winters, who this week called for CEO Muhtar Kent to be replaced.
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