RUSSIA: Carlsberg CEO still confident on Russian beer market

Carlsberg's CEO remains "extremely optimistic" about Russia's beer market

Carlsberg's CEO has said that he remains "extremely optimistic" about Russia's beer market, despite two years of heavy declines in consumption.

Russia's beer market will bounce back from the vagaries of economic turmoil and a Government-imposed, three-fold hike on tax, Jørgen Buhl Rasmussen said in an exclusive interview, published on just-drinks today (26 April).

Fresh regulatory challenges still loom on the horizon for Russia's major brewers, with reports suggesting that the Government may ban television and billboard advertising. Authorities may also prohibit the sale of beer in plastic bottles.

"We've had two very challenging years, but I'm extremely optimistic about Russia," said Rasmussen. Carlsberg's fate is closely tied to Russia's beer market due to its ownership of the country's leading brewer, Baltika Breweries.

Speaking on last year's tax hike, Rasmussen said: "I would think that it's very unlikely that we will see anything like that again in Russia." He said that vodka is a bigger target for the authorities.

He added: "Russia's per capita consumption has gone from 80 litres in 2008 to 66 litres, which is below the European average. It's hard to believe that Russia would not come up to at least the European average." Rasmussen expects Baltika's volume share of Russia's beer market to "go up slighty year-on-year" from its current 40% level.