Carlsberg suffers on fears over Russian plans for beer ban

SHARES in Danish brewer Carlsberg slid yesterday on worries that Russia, its largest single market, might pass a law that would severely restrict beer sales.

Russia is considering a ban on the sale of beer with alcohol content of more than 0.5 per cent between 11pm and 8am in shops. The bill would also ban the sale of beer altogether at outdoor kiosks, train stations and street stands, at which around one-third of Russia's beer is sold.

Carlsberg, whose stock touched a near four-month low, is the beer market leader in Russia, which accounts for about 40 per cent of the group's total beer volume. It owns the Baltika brand after buying out its former joint venture partner Scottish & Newcastle in 2008.

The bill is expected to be passed by the end the week and the ban would take effect from 1 January 2013. "Of course it will have an effect on Carlsberg, but it is difficult to estimate how big," Alm Brand analyst Stig Nymann said. "This sounds worse than what we have been presented with before."

A Carlsberg's spokeswoman said it was difficult to know exactly what was on the agenda. In May, Carlsberg said a recovery in eastern European helped drive a 38 per cent rise in profits.