Carlsberg has seen its sales of beer in Russia fall by more than 10% this year, as a steep tax rise at the start of the year takes its toll on the country's consumption of beers. Carlsberg had devised a plan in light of the duty hike to pass additional costs on to consumes within the period Jan-May. Consequently, the firm's prices have risen by an average of 20%, the WSJ reported. Russia tripled the excise tax on beer on 1 Jan/2010, despite significant opposition from the brewing industry. Jorgen Buhl Rasmusen, CE of Carlsberg said: "We look at Russia as a growth region, but there are some obstacles we have to overcome in the short term." Commenting on whether the decision to pass increased production costs directly onto consumers was the right decision, he said: "When the changes come as a shock like the beer tax, its difficult to make any plans."
