Russia Improving, Great For Carlsberg
When Russia sneezes, Carlsberg catches a cold. This way of thinking was well-justified during the past few years, as a slowdown in consumer spending, a hike in beer taxes and, more recently, a decline in market share hit the Danish brewing company hard given that Russia makes up about 40% of its sales. More recently, however, things have improved both on a fundamental and company-level basis.
In the years leading up to 2008/2009 , Russia was a gold mine for Carlsberg , as the dynamic oil-led economy, rising incomes and relatively low taxes made for a great story with regard to beer. However, the aforementioned challenges severely affected the brewer in recent years. Our outlook for the Russian beer industry will very likely be good news for Carl s berg; w e see total beer sales in Russia growing by 2.8% in 2012 before climbing up to 3 .0 % in 2013 after three consecutive annual contractions.
From Carlsberg's perspective, this ties in well with the fact that it has partially reversed some of the market share declines from the past year or so. Its share of the Russian market following the third quarter to September 2012 now stands at close to 39%, which leave s it well ahead of rivals such as AB InBev and Anadolu Efes , both of whom have sizeable businesses in Russia through their domestic subsidiaries.
|Finally On The Comeback Trail|
|Russia - Beer Sales By Volume (mn litres)|