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| Russia tensions hit Carlsberg sales | Russia tensions hit Carlsberg sales |
| (35 minutes later) | |
| Sales at the Danish brewer Carlsberg have been hit by falling consumption in Russia and Ukraine. | Sales at the Danish brewer Carlsberg have been hit by falling consumption in Russia and Ukraine. |
| Russia beer volumes declined by between 6% and 7% in the second quarter due to the "uncertain macroenvironment" and "weak economic development", Carlsberg said. | Russia beer volumes declined by between 6% and 7% in the second quarter due to the "uncertain macroenvironment" and "weak economic development", Carlsberg said. |
| Ukrainian beer consumption dropped 10% amid the crisis in Eastern Europe. | Ukrainian beer consumption dropped 10% amid the crisis in Eastern Europe. |
| Carlsberg warned that its yearly profits would be likely to decline as a result. | Carlsberg warned that its yearly profits would be likely to decline as a result. |
| "In Eastern Europe, our teams are doing an excellent job mitigating the impact of the current market challenges," said Carlsberg chief executive Jorgen Buhl Rasmussen. | "In Eastern Europe, our teams are doing an excellent job mitigating the impact of the current market challenges," said Carlsberg chief executive Jorgen Buhl Rasmussen. |
| "Unfortunately, we believe the Eastern European beer markets will be impacted further as consumers are facing increased challenges and this will impact the group's profits negatively this year," he added. | |
| Carlsberg's Baltika beer brand has the largest chunk of the Russian beer market. However, its market share declined by 1.2% in the quarter to 37.4%, after the brewer introduced smaller pack sizes. | |
| World Cup benefits | |
| In Ukraine, sales were affected by a beer tax increase of 43%, Carlsberg added. | |
| Russia and the West have implemented sanctions against each other over the Ukraine crisis. The West has accused Russia of supporting pro-Russian separatists in Ukraine. | Russia and the West have implemented sanctions against each other over the Ukraine crisis. The West has accused Russia of supporting pro-Russian separatists in Ukraine. |
| Despite the tensions, Carlsberg's rival Heineken reported "strong brand growth" in Russia in the first half of the year. | Despite the tensions, Carlsberg's rival Heineken reported "strong brand growth" in Russia in the first half of the year. |
| Its brands grew by more than 5% in central and eastern Europe in the period. | |
| Overall, Heineken said its sales volumes had benefitted from the effect of the World Cup. | |
| However, Heineken's net profit dropped 1.3% to 631m euros (£504m) in the first half. |