Carlsberg in $721 mln Russian business restructuring

MOSCOW, Nov 11 (PRIME) -- Danish beer giant Carlsberg, owner of beer company Baltika, plans to spend 5 billion Danish kroner, or U.S. $720.78 million, to restructure its business in Russia, the company said in a statement published Wednesday.

The restructuring will be held due to falling demand for beer in Russia and asset impairment. Russia’s beer market contracted 10–11% in July–September, while amount of supplies fell 18%. The volume of the company’s market amounted to 35.1%, Carlsberg said.

“We have now concluded that the difficult market challenges will persist for the next few years and, consequently, that the decline of the beer category will continue. This will negatively impact the profits of our Russian business. As a result of this, further restructuring of our production network is needed,” the company said.

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