|EU Beer Sales Fizzle Out over Sector Sanctions|
|by Tom McGregor||Wed, Aug 20, 2014, 10:19 PM|
European Union based beer companies are struggling with declining profits as Obama's Sector Sanctions against Russia are hammering their bottom lines.
The BBC News reports that, "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."
Carlsberg CEO Jorgen Buhl Rasmussen is quoted as saying that, "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."
According to the BBC, "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."
The Ukrainian government imposed a 43 percent beer tax.
To read the entire article from the BBC News, link here:
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