Danish brewer Carlsberg is avoiding price markups in Russia by making some of its bottles smaller and putting less beer in others, the company's CEO said, Bloomberg reported Thursday.
Carlsberg, which relies on Russia for 35 percent of its profits, is having a torrid time. The company lowered its profit forecast for 2014 this week, blaming Russia's shrinking beer market and an economic downturn made worse by Western sanctions against Moscow for its role in the Ukraine conflict.
The initiative, which applies to half of Carlsberg's Russian stock, means "we don't have to increase prices as much, because then we can keep the same price points but lower volumes a little," CEO Joergen Buhl Rasmussen told Bloomberg.
A spokesman for Carlsberg declined to specify the exact volume of beer that is being saved per bottle, saying only that it is a "small amount," the report said.
Carlsberg, which owns the popular Baltika brand in Russia, said its Russian market share dropped 1.2 percentage points to 37.4 percent by volume in the first half of this year.
See also:
Carlsberg's Post-Sanction Dip Ominous Sign for European Companies
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
