France: Carlsberg may have to raise prices by 15% because of the new beer taxes

Denmark’s Carlsberg Group has said earlier this week it will be forced to introduce price rises of around 15% in France if the government goes ahead with planned duty increase.

The French government announced last month it is proposing a 160% hike on beer tax to help cut the country's social security deficit. Speaking during an analysts' conference call, following its Q3 results on November, 7, Carlsberg's CEO Jørgen Buhl Rasmussen said the move will be “negative for the market development” in the country.

“We are thinking about on average having to put through a price increase of around 15%, if it stays at 160%,” he added.

On the subject of rival Heineken potentially putting up its prices by 20%, Rasmussen said: “I know how we got to 15%. I don't know how Heineken got to 20%.”

09 November, 2012