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Brewer Says Tax Hikes In Russia Affected Revenues

Then-President Dmitry Medvedev (left) and then-Prime Minister and President-elect Vladimir Putin toast with beers at a casual lunch meeting on May 1.
Danish brewer Carlsberg has reported a first-quarter net loss of 76 million kroner ($13.3 million) in part because of higher beer taxes in Russia.

The loss contrasts with a 173 million-kroner profit in the same period last year.

The company said its sales of beer were solid in western Europe and strong in Asia, while they fell in eastern Europe partly due to destocking in Russia as consumers stockpiled beer prior to the 20 percent increase of taxes on beer as of January 1.

Russian authorities introduced the tax increase in a bid to reduce alcohol consumption and related alcoholism.

During the quarter Carlsberg had a 37 percent market share in Russia.

Based on reporting by AP and dpa